Funding sought for expressway

The Ministry of Transport has asked the World Bank (WB) to increase interest-free credit for the Da Nang-Quang Ngai expressway project to reduce risk of debt distress.

The ministry has urged the project management units and developer Vietnam Expressway Investment and Development Corp. (VEC) to complete the environment impact appraisal report on the project in line with the international donors’ requirements. It has also told leaders of VEC, Project Management Unit 85 and Project Management Unit 1 to find a proper financing plan for the project. Based on this plan, the ministry will work with relevant agencies and international donors over funding for the project.

VEC plans to develop the expressway at a total cost of 29.2 trillion dong (about U5$1.5 billion), with U5$576 million equivalent coming from the WB, or 38.4 percent of the total. Japan International Cooperation Agency will provide U5$725 million (48.3 percent) and the remaining U5$200 million, or 13.3 percent, from Vietnam.

The project consists of a 131.5-kilometre expressway passing through Da Nang City and Quang Nam and Quang Ngai provinces, and an 8.5-kilometre road connecting to National Highway 1A. It is scheduled to get off the ground next year, and will be developed in two phases lasting four years. – Saigon Times

Tags: Da Nang-Quang Ngai expressway

Posted by VBN on Oct 8 2010. Filed under Infrastructure. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry