ADB to lend Vietnam almost half of costs of new highway

6 Aug 13
The Asian Development Bank is lending Vietnam $410m towards the $860m construction of a second arterial highway between Ho Chi Minh City and the Mekong Delta.

Rustam Ishenaliev, transport specialist in the ADB’s Southeast Asia department, said the link would support Vietnam’s industrial and economic development.

‘Vietnam has a rapidly growing export-led economy, and the Mekong Delta is a key economic driver which produces more than 60% of Vietnam’s agricultural and fishery outputs and the third largest industrial centre,’ he said.

The project will consist of two bridges, with a combined length of 5km, and 26km in interconnecting roads. Journey times between Ho Chi Minh City and Long Xuyen in the Mekong Delta are expected to be cut from 3.5 hours to 2.5 hours. The new highway is scheduled to be open to traffic by 2017.

As well as more efficient transport links, the new road is expected to improve access to basic social and health services and facilitate greater private sector investment in the region.

It is expected to cost $860m in total. As well as the $410m contribution from the ADB, the Australian Agency for International Development is providing AUD$160m in grant financing to fund the construction of the Cao Lanh bridge. Parallel financing of $260m is coming from the Export-Import Bank of Korea and will pay for the construction of the Vam Cong bridge.

The Vietnam government is contributing $56m towards the cost of the project.

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