Transport ministry seeks US$22b for highway projects

The Ministry of Transport has submitted to the prime minister for approval a plan to develop Vietnam?s highway system to 2025, which aims to build around 5,000 kilometres of highway and sub-highways totalling 360 trillion dong (US$22.5 billion).
Currently Vietnam does not have any road that is really a highway, just pre-highway, including the Phap Van Gie Bridge and Sai Dong Bac Ninh sections.
Under the above plan, Vietnam will build a highway system including: a North South highway, six highways linking Hanoi with big economic hubs in the north, eight highways in the south, and four in the central region and Central Highlands.
The construction of Cau Gie Ninh Binh highway is underway, and is scheduled to be completed in 2008. Other highway projects are awaiting the government?s approval, such as Noi Bai Mai Dich and Hanoi Lao Cai.
Mai Tuan Anh, deputy general director of the Vietnam Expressway Investment and Development Co (VEC), said that expressways and pre-expressways would connect key economic regions and create a dynamic for developing economies in all three regions, the north, the south and the central region. However, building expressways requires huge capital outlay.
To realise the above plan, the Ministry of Transport has to raise capital from all sources, ranging from state budget, bonds, local budget, auction of land use rights, loans, etc.
According to the plan, from 2005 to 2015 Vietnam will build around 2,353 kilometres of road, including 783 kilometres of pre-expressway. From 2015 to 2025, the country will build around 2,606 kilometres of road, including 1,480 kilometres of pre-expressway.
The Ministry of Transport estimates that the necessary capital to realise the above goal is 360 trillion dong including 195 trillion dong for 2005-2015 and 165 trillion dong for the 2015-2025 period.

 

Category: Legal