The proposed financing will come from the World Bank’s International Development Association (IDA) – a source of concessional financing for low income countries. The soft loan will have a 40-year maturity with a 10-year grace period. The project will also receive a grant of US$9.80 million from the Global Environment Facility managed by the World Bank.
“Environmental and traffic issues will be a key challenge for Vietnam in the future as cities grow and vehicle ownership increases,” William D. O. Paterson, Acting Country Director for the World Bank in Vietnam said. “The Hanoi Urban Transport Development Project is designed to address both of them in ways that can later be replicated nationwide.”
Toward those goals, the project will develop a Bus Rapid Transit System, including 37 km of segregated bus lanes and 9 km of bus priority along the Giang Vo- Lang Ha and Giai Phong - Dai Co Viet corridors, its related facilities, and the acquisition of 130 vehicles. It will also support the establishment a modern Bus management system.
The Road Infrastructure and Sustainable Urban Planning component includes the construction of a section of the Second Ring Road between Nhat Tan Bridge and Cau Giay, together with support for sustainable urban land development and transportation planning in Hanoi.
And the Institutional Development Component will help strengthen Air Quality Management; support traffic safety; support establishment and strengthening of a new Public Transport Authority, transport planning and policy development; and finance replication activities. -The World Bank
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