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Tuesday, July 23, 2024

PM approves using S. Korea’s ODA loans for My An-Cao Lanh road project

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HCMC – The Ministry of Planning and Investment’s proposal to tap South Korea’s official development assistance loans to fund the My An-Cao Lanh road section in Dong Thap Province has been approved by Prime Minister Nguyen Xuan Phuc.

The Government leader asked the ministry to inform the Export-Import Bank of Korea (Keximbank) of the proposal to prepare for further steps.

The Transport Ministry was asked to collect feedback from the relevant agencies and coordinate with the Planning-Investment Ministry to discuss it with the sponsor. It was also told to team up with the authorities of Long An and Dong Thap provinces and relevant agencies to conduct a pre-feasibility study and submit it to the prime minister.

Earlier, the Transport Ministry had proposed to the Cabinet leader a plan to take out loans worth US$166.47 million from the Economic Development Cooperation Fund (EDCF) under Keximbank. The annual interest rate for the loans is 1.5%, with a maturity period of 40 years including a grace period of 10 years.

The 26.16-kilometer-long road section will connect Vam Cong Bridge with Cao Lanh Bridge. The four-lane road requires a total investment of over VND4.5 trillion, including ODA loans worth some VND3.8 trillion provided by EDCF and the rest funded by the State budget.

The implementation of the project is scheduled for four years, from 2021 to 2024, after a loan agreement takes affect.

Once completed, the My An-Cao Lanh section is expected to reduce the distance and time needed to travel from the southeastern and Central Highlands localities to the Mekong Delta.

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