The European Investment Bank has granted a €73m ($100.5m) loan to Vietnam to finance the construction of a 12.5km-long metro rail line project in Hanoi.

The $1bn line will run from Nhon in Tu Liem district to Hanoi’s railway station in Hoan Kiem district.

There will be 12 stations along the route, which is designed for a maximum speed of 80km/h with a total travel time of about 20min.

The line is expected to be operational by 2015 and is expected to carry 200,000 passengers a day to ease traffic congestion in the city.

The project also includes the construction and equipping of a new depot and purchase of nrolling stock to operate the line.

The French Government had earlier allotted €283m ($384m) for the metro line and the rest of the funds are coming from the city’s state budget.

The project is the first EIB-financed metro line in Asia.