(SGT-HCMC) The Asian Development Bank, or ADB, has promised to support key projects in HCMC, including constructing a subway system.

John R. Cooney of the ADB’s Mekong Department told HCMC authorities on Friday that the bank would provide technical assistance, worth US$1.5 million, to the city to research the long-term social benefits and environmental impacts of the subway project.

He added ADB would earmark US$350 million in the next few years for developing the US$800-million subway system. The loan under the OCR (Ordinary Capital Resources) form would span 30 years, including a 10-year grace period.

However, the city government must complete the financial plans for the metro, specifying the sources of the remaining capital, Cooney said. The ADB will appoint two experts, who are working in Thailand, to help the city draw up the financial plans.

ADB vice president Liqun Jin said the ADB could also provide other commercial loans for the subway.

"With our support of your projects, international investors will not hesitate to put their money into them," Jin said.

At the meeting, HCMC vice chairman Nguyen Van Dua said the city government was waiting for the answer from the German government if it would lend US$120 million in official development assistance for the subway, which Germany’s Siemens wants to build.

Under Siemen’ plan, loans from Germany, Austria, the ADB and German banks, as well as the city will finance the two subway lines from Ben Thanh market to Mien Tay Coach Station and Tham Luong.

In addition, Cooney said, the ADB was paying more attention to other key projects in the city, such as beltway II and water supply and waste treatment systems.

Before the meeting in HCMC, Jin and ADB senior Mekong advisors went on a fact-finding tour along the trans-Asia road, which links HCMC to the Vietnam-Cambodia border.

Jin’s five-day trip was his second visit to Vietnam. In Hanoi, Jin and the ADB mission attended the Vietnam Investment Forum and met with Vietnamese leaders. Jin’s team left HCMC on Saturday.

Source: http://www.saigontimes.com.vn/daily/detail.asp?muc=1&Sobao=2650&SoTT=1