EIB lends 150 mln euros for Vietnam subway project

HANOI Dec 6 (Reuters) - The European Investment Bank said on Monday it has loaned Vietnam 150 million euros ($199 million) to help build a metro line in Ho Chi Minh City, the country's commercial centre.

The loan signed on Monday with Vietnam's Finance Ministry will pay for building the second metro line in Ho Chi Minh City in the south of Vietnam, including 11 stations and a depot to serve 140,000 passengers a day, the lender said in a statement.

It gave no further details of the loan.

The Finance Ministry said the 11.3-km (7 miles) subway line will start running in 2018. It is intended to help cut traffic jams and reduce emissions.

Ho Chi Minh City, with a population of 8 million, has been trying to deal with increasing traffic congestion caused by its fast growth in recent years.

Construction of the first metro line in the city began in August at cost of $1.25 billion, using development assistance from three foreign banks plus domestic funds. The line is slated to start working in 2016.

(Reporting by Ho Binh Minh; Editing by Daniel Magnowski)

($1 = 0.755 Euros)