Ho Chi Minh City authorities have decided to use city budget funds for its second metro line instead of accessing official development assistance (ODA) loans.

The 11 km line connects Ben Thanh Market in District 1 and Tham Luong Depot in District 12, with more than 9 km built underground and the remaining section elevated.

The project needs investment capital of an estimated VND47.9 trillion ($1.8 billion).

It was initially to be financed through ODA loans. However, a recent report from the Management Authority for Urban Railways revealed that securing financing has proven challenging due to modifications in the loan conditions imposed by international lenders.

The project is expected to be put into operation by 2030.

The city’s first metro line, running 19.7km between Ben Thanh Market and the Suoi Tien Theme Park, is set to commence operations in December.