The European Investment Bank (EIB) said Monday it has loaned Vietnam 150 million euros to finance a metro project in Ho Chi Minh City.

Under a contract signed between EIB and Vietnam’s Finance Ministry, the loan will pay for the second metro line which will be over 11.3 km and will have 11 stations in the central area of the city.

The project includes the construction and equipment of a new depot as well as the acquisition of new rolling stock to operate the line. The new metro line will directly benefit 140,000 daily passengers in the opening year.

The Finance Ministry said the subway line will start running in 2018. It is intended to help cut traffic jams and reduce emissions.

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