Korea helps Vietnam develop southern coastal corridor route

To act as prime minister’s proxy, the deputy minister of finance, Tran Xuan Ha, on October 29 signed three official development assistance (ODA) agreements totalled at $76 million with Dongsoo Kim, Korea Eximbank Chair cum general director, to develop transport infrastructure of Vietnam.

The signing was made via Economic Development Cooperation Fund (EDCF) for three projects:

* Southern coastal corridor route project for Thu Bay-Cau Kenh 14 road ($70 million) with the loan rate of 0.05 percent per year and the settlement duration of 40 years (including 10 years of grace period).

* Project to supply equipments for Ayunpa vocational secondary school ($3 million), with the lending rate at 0.1 percent per annum and the repayment period of 35 years (including five years of grace period).

* Project to supply equipments for Ca Mau general Hospital ($3 million).

Previously, Korean government gave bilateral donor to support Vietnam in building large infrastructure projects such as Hanoi-Hai Phong expressway and Vinh Thinh bridge.

According to the Ministry of Finance, till date, Korean government has committed to provide EDCF loans worth over $1 billion for over 30 projects of Vietnam in infrastructure sector such as transport, energy, clean water supply, waste treatment and health. Many of them have been finished and put into operation such as National Road 18 (Chi Linh-Bieu Nghi route), Ba Ria thermo power plant (Ba Ria-Vung Tau province), Thien Tan water supply plant (Dong Nai province) in the first phase, and project to produce five vaccines for disease prevention and solid waste treatment project in the northern city of Hai Phong.

During 2008-2011 period, Korean government pledged to supply Vietnam a credit framework of up to $1 billion and became one of big donors for Vietnam so far.

Tags: Vietnam southern coastal corridor route