At least $1.4 billion is needed to get the Danang-Quang Ngai highway project rolling.
The Ministry of Transport (MoT) has asked the Vietnamese government to allow developer Vietnam Expressway Corporation (VEC) to use the loan packages it sourced from the World Bank and the Japan International Cooperation Agency (JICA) for the project’s implementation.
The MoT also proposed the government partly finance the payment of a debt incurred by the project to the foreign lenders in the first 16 years after the highway was up and running with a total funded amount of around $323 million. VEC would repay the government later when the project starts to generate profits.
VEC will develop the expressway under build-operate-own (BOO) at a total cost of VND27.968 trillion ($1.472 billion) of which VND24.769 trillion ($1.304 billion) will be foreign loans and VND3.199 trillion ($168 million) local reciprocal capital.
The project consists of a 131.5-kilometreexpressway passing through Danang and Quang Nam and Quang Ngai provinces, and a 8.5km road connecting to the National Highway 1A.
The four-lane expressway is designed for vehicles to travel at a maximum speed of 120 kilometres per hour.
The expressway project is scheduled to get off the ground next year and will become up and running in 2016.