HCMC: Proposed Establishment of Metro Corporation and TOD

The Chairman of Ho Chi Minh City People's Committee, Phan Van Mai, has announced that the city will explore the establishment of the Metro Corporation and Transit-Oriented Development (TOD).

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On February 16, Chairman of the People’s Committee of Ho Chi Minh City (HCMC) Phan Van Mai chaired a meeting of the Advisory Council to implement Resolution 98/2023 of the National Assembly on piloting certain mechanisms and policies for the development of the city; the Expert Advisory Team on the construction and development of the urban railway system.

Clearing and compensation before commencing construction

In the discussion at the meeting, Dr. Architect Ngo Viet Nam Son proposed and hinted at various issues for HCMC to complete its urban railway system of 220 km by 2035 in accordance with Conclusion 49/2023 of the Politburo.

Scene of the meeting on the morning of February 16

“Completing the 220 km urban railway by 2035 is a challenging task. Therefore, there needs to be a different mindset, a different way of doing things,” Mr. Son commented.

Based on that approach, Mr. Son believes that building urban railways requires a multi-disciplinary combination with many issues beyond the scope of the Urban Railway Management Board of HCMC such as planning, land clearance, compensation, etc.

Mr. Son proposed to establish a Metro and TOD (Transit-Oriented Development) Group as a joint-stock company. The first component would be the relevant departments and sectors, with the HCMC People’s Committee as the conductor, the largest shareholder in the Group, and smoothly coordinating the departments and sectors.

Dr. Architect Ngo Viet Nam Son proposed to establish a Metro and TOD Group as a joint-stock company

According to Mr. Son, it is necessary to approach the construction of urban railways with a multi-disciplinary mindset rather than a single-disciplinary one. The relevant departments and sectors should all participate, and after the plan is finalized, they will be the ones to implement it.

Especially with land clearance, it is necessary to complete compensation throughout the entire line before commencing construction. If compensation work is not completed before construction starts, resolving compensation issues will be very difficult because land prices will increase every day, every hour. The time for land clearance, compensation, and resettlement will be prolonged, greatly affecting the project progress.

“HCMC is fighting a big battle, so caution is necessary, and victory can be achieved,” commented Mr. Son.

In addition, Mr. Son also proposed the establishment of a TOD project implementation board, as Resolution 98 has delegated authority and the central government has also supported HCMC in implementing this method, the first of its kind in the country. The board should initially include the Department of Transport, the Urban Railway Management Board, and the Department of Planning and Architecture, as each metro line and location requires specific planning.

Meanwhile, Prof. Vu Minh Khuong also suggested the formation of an action alliance to construct the metro system. This alliance would include HCMC, Hanoi, central government ministries and agencies, experts, investors, and the ingenuity of the whole country.

Research on the establishment of a Metro and TOD Group

Listening to the opinions of experts, Chairman of the People’s Committee of HCMC Phan Van Mai affirmed that not only the urban railway but also other issues of the city, the city’s People’s Committee should approach them from a multi-disciplinary, holistic perspective with the goal of sustainable development and placing the people at the center.

This is why HCMC has established many steering committees and working groups, because a single department cannot solve the problem.

Chairman of the People’s Committee of HCMC Phan Van Mai chairs the meeting

Specifically, in the construction of the metro system, the Chairman of the People’s Committee of the city shared that the city has adopted a multi-disciplinary approach right from the start, with the Urban Railway Management Board acting as the permanent agency, and the relevant departments and sectors coordinating under the direction and management of HCMC’s People’s Committee.

The Chairman of the People’s Committee of HCMC said he will continue to improve this matter. The city’s People’s Committee will review the plan to clarify the inter-agency responsibilities, synchronize the implementation of work stages, and avoid difficulties arising if certain tasks are not completed.

Regarding TOD, the city has also established a multi-disciplinary team with the Chairman of the People’s Committee of the city as the team leader.

With regard to the proposal to establish a Metro and TOD Group, the Chairman of the People’s Committee of the city stated that further study will be conducted on this matter.

“I understand the experts’ opinion that departments, sectors, and related parties involved in the project must participate from the beginning, providing ideas and being responsible throughout the project,” shared the Chairman of the People’s Committee of the city, adding that the establishment of the Metro and TOD Group will be studied by the city when and in which phase.

HCMC has currently been planned for eight metro lines and three surface tram lines (or monorail) with a total length of 220 km and an estimated investment of about $25 billion. Of these, Line 1 (Ben Thanh – Suoi Tien) and Line 2 (Ben Thanh – Tham Luong) have been implemented, while the remaining lines have not been invested in.

Article and photos: PHAN ANH