Vietnam to take int’l loans for new expressway

Loans will be sought from the World Bank and the Japan International Cooperation Agency (JICA) for building an expressway linking Danang City with Quang Ngai Province at a cost of nearly US$2.5 billion.

Preparations are being pushed up so that work can start later this year on the project, which once in place will become part of the north-south expressway.

JICAis expected to finance the section from Danang to Tam Ky in Quang Nam Province stretching 65 kilometers, while the World Bank would fund for building 66 kilometers from Tam Ky to Quang Ngai. Counter capital from Vietnam will be used for project management, land clearance and resettlement costs.

According to the transport ministry, the Danang-Quang Ngai road requires a huge fund of US$2.48 billion, including US$1.5 billion for building the first phase of the project.

The feasibility study of the project has been finished by experts of Japan External Trade Organization, or Jetro, since 2007. However, the World Bank has asked for updating the study and the Project Management Unit 85, in charge of managing the investment project, has named Japan’s Nippon Koei as the consultant.

The management unit is expected to organize a bidding round to select contractors for the project in the early months this year. If everything goes smoothly, work will start the road late this year for the first-phase completion after three years.

The road has been designed for four lanes in the first phase, allowing for a maximum vehicular speed of 100 kilometers per hour. In the second phase, the road will be expanded into six lanes.

The road will create a strong communication route between economic zones in the central area and facilitate the development of new urban townships, industrial parks and tourism facilities.

Deputy PM Hai also asked the Ministry of Transport to join forces with two ministries of planning-investment and finance to devise solutions for ensuring the viability of the project as well as meeting requirements of the international lenders.

Besides the Danang-Quang Ngai, the transport ministry is also seeking the World Bank loans for the Ninh Binh-Thanh Hoa expressway.

Vietnam is pursuing an ambitious plan to develop an expressway across the country with 16 sections stretching a total length of over 1,800km, or some 74km shorter than National Highway 1A as the country’s current backbone.

The country will need a hefty budget of VND312.8 trillion (US$18.4 billion) for the north-south expressway project.

CauGie-Ninh Binh in the north is now the first expressway allowing vehicles to travel at over 100 kilometers per hour, while the HCMC-Trung Luong expressway is to be opened to traffic on February 3.

VietNamNet/SGT

Tags: Vietnam Infrastructure, Vietnam expressway, Vietnam investment