ADB provides US$410m for HCM-Long Thanh-Dau Giay expressway
02-OCT-2008 Intellasia | ADB
Oct 2, 2008 - 7:00:00 AM
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The Asian Development Bank (ADB) has approved a US$410.2 million loan to Vietnam to construct a 51-kilometer, four-lane expressway.
The expressway, which will be tolled, will start from the centre of HCM City (the junction of the Second Ring Road in District 9) and end at the junction with National Highway 1 at Dau Giay in Dong Nai Province.
This major project includes the construction of a 1,700-metre bridge over the Dong Nai River at Long Thanh.
Ho Chi Minh is Vietnam's largest city and the country's major economic hub. In the city and the surrounding provinces, economic activity is focused on the industry and service sectors, driven by export markets.
The road network around the city is heavily congested, travel speeds are decreasing and transport costs increasing. The new expressway will contribute to a more streamlined traffic flow, which will have a significant impact on economic activities in HCM City, the surrounding provinces, and the Greater Mekong Subregion.
"Better roads assist people and businesses by lowering transport costs and transportation time," said John Cooney, director, Infrastructure Division of ADB's Southeast Asia Department. "There will also be a flow-on effect of less pollution caused by traffic congestion. Traffic accidents will be reduced by better roads, this has a very important social and economic impact."
The entire expressway project will cost US$932 million, with other funding coming from the Japan Bank for International Cooperation and the Vietnam Expressway Corporation.
The expressway will be completed in 2014. Environmental management plans have been prepared for use during the construction and operation of the expressway.
ADB supports Vietnam's overall investment programme to improve transport infrastructure and reduce transport costs throughout the country.
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