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| WB to fund $580m for Da Nang-Quang Ngai Expressway project |
| 06/Sep/2010 Intellasia | Dau Tu page 16 |
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| 6 Sep, 2010 - 1:54:19 PM |
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Vietnam Expressway Investment and Development Corp (VEC) was the main investor for the Da Nang-Quang Ngai Expressway project. By the end of August 2010, the ministry of transport has send a document No 5601/BGTVT-KHDT to suggest the Ministry of Planning and Investment seek for approval from the prime minister for the detailed plan of Da Nang-Quang Ngai Expressway project with the purposes of submitting the project profile to World Bank (WB) and Japan International Cooperation Agent (Jica) for being included in the list of projects seeking for loans in the fiscal year of 2010 and the following years.
Ngo Thinh Duc, vice minister of transport revealed previously that the government had already passed the feasibility studies for this project and assigned ministry of transport to approve the project in accordance with the current state laws.
According to the project's feasibility studies that had been conducted by Japan-based Nippon Koei Designing Consultancy Corp, the Da Nang-Quang Nam Expressway has total length of 139.5 kilometres, connecting Hoa Vang Dist, Da Nang City with Tu Nghia Dist, Quang Ngai province. The road would be built under road standard level A with designed speed of 120 km/h.
The total investment capital for this project was posted at 29.203 trillion dong or $1.53 billion. The Da Nang-Quang Ngai expressway will have four lanes with total road width of 26 metres. After careful consideration, the ministry of transport has assigned VEC as the main investor for carrying out the project under BOO method (Buiding-Operating-Owning).
At present, World Bank has committed to fund 37.5 percent of the total investment capital for this project, equalling to $580 million. Jica was considering funding 48.3 percent of the project's value or $725 million from ODA capital with total period of 30 years. The rest 13 percent of total investment capital will be taken from the state budget.
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