Hanoi Metro Line

Promoter – Financial Intermediary

Hanoi People Committee

Location

• Vietnam

Description

The project consists of the realisation of Metro Line 3 in Hanoi, the capital of Vietnam, in line with the approved Master Plan, which aims to improve Hanoi’s accessibility by public transport. The new line will be approximately 12.5 km long, with 12 stations plus a depot/workshop. The project foresees also the acquisition of new rolling stock to operate on the line.

Objectives

The proposed operation would support a project that would contribute to the EU presence in Vietnam through transfer of technology and know-how and to environmental sustainability, the two objectives of the ALA Mandate and EU priorities.

Sector(s)

• Transport

Proposed EIB finance (Approximate amount)

EUR 73 million

Total cost (Approximate amount)

EUR 900 million

Environmental aspects

By virtue of its technical characteristic, the project, if located in the EU, would fall under Annex II of the EU EIA Directive 85/337/EEC as amended, leaving it up to the competent authorities to decide, based on Annex III whether an EIA is required or not. Under Vietnamese Law, a full EIA, including public consultation, is required and has been conducted by the promoter, conforming to World Bank standards which are the common denominator for the lenders. The project, and the more global plan it is part of, should greatly reinforce the public transport system in Hanoi, resulting in a positive modal shift from private cars and motorcycles, thereby alleviating congestion and associagted environmental problems. During appraisal, the Bank shall verify if the EIA process has been carried out in accordance with the requirements of the lenders and that appropriate mitigation and compensation measures have been adopted. Preliminary evidence shows that, due to the required acquisition of land and the placement of the stations, the project will generate resettlement of dwellings and economic activity. The promoter has already prepared a draft Resettlement Policy Framework which will be reviewed during appraisal. As a condition for the EIB’s financing, the promoter would have to prepare a Resettlement Action Plan in accordance with the lenders’ requirements.

Procurement

The project has to comply with the basic principles of the EU policy on procurement. The main project components will be internationally tendered according to principles indicated by the different IFIs involved in the project, coherent with the principles of EIB’s Guide to Procurement which are a precondition for the Bank’s financing. Tender documentation and all the procurement process for components financed by the EIB will be subject to its approval and the release of no-objection before proceeding.

Status

Signed - 4/10/2010