ADB to lend Vietnam US$1.19b to build highway to China
29-SEP-2008 Intellasia | Dow Jones
Sep 29, 2008 - 7:00:00 AM
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The Asian Development Bank signed an agreement Friday with Vietnam for a US$1.19 billion loan to build a highway to link Hanoi with the border with China to the north.
According to the agreement, signed between ADB Country director for Vietnam Ayumi Konishi and State Bank Governor Nguyen Van Giau, the 27-year loan will be used for building the 244-kilometer road from Hanoi's Noi Bai Airport to the northern province of Lao Cai.
Construction of the highway is scheduled to begin late this year and be completed by June 2012, reducing the time needed for travelling the distance to three hours from seven to eight hours.
The total cost for the project will be US$1.22 billion, including US$120 million contributed by Vietnam.
"The highway is an integral section of the eastern link of the Greater Mekong Subregion (GMS) Northern Economic Corridor and will help boost trade between Vietnam's northern provinces with China's Yunnan province," said Nguyen.
Konishi said the loan shows the ADB's commitment to continue supporting the Vietnamese economy in the battle against inflation, which the government estimates will be 27.9% on year in September.
Vietnam shares borders with China's Guangxi and Yunnan provinces. Annual trade between Vietnam and these two provinces is about US$2 billion.
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