French Minister of Economy, Finance and Industry Christine Lagarde and Vietnamese Deputy Planning and Investment Minister Cao Viet Sinh signed the loan agreement in Paris last Wednesday.

The 12.5-km line, to link Hanoi railway station with the western suburban town of Nhon, is scheduled to become operational in 2010.

A 1.5 km portion of it, from Kim Ma Bus Station to the Hanoi station, will run beneath Van Mieu – Quoc Tu Giam (Temple of Literature). It is scheduled to carry 6,000 passengers per hour one way in the initial stage and double that by 2030.

Several pre-feasibility studies and technical assistance missions have been undertaken for the project with funding by the French government.

Construction of an urban rail system in Hanoi has been under consideration since 2002 when then Vietnamese President Tran Duc Luong visited France.

The proposal was concretized in October 2004 through the signing of a joint declaration of cooperation during a visit by French President Jacques Chirac to Vietnam.

It is part of a Vietnamese government program to strengthen public transport.

Source: Thoi bao Kinh te Vietnam – Translated by Ha Viet