HCMC – The Ministry of Transport has written to the Prime Minister seeking approval to increase the investment capital for the My An-Cao Lanh Expressway project from VND4.77 trillion to VND6.2 trillion.
The extra funding would be used to cover the rising costs of construction, land clearance, construction material and project management.
Land clearance expenses have increased by around VND353 billion, construction costs have risen by VND788 billion, and an additional VND80 billion has been required for project management. The contingency costs are also estimated to surge by VND218 billion.
To secure the additional funding, the Ministry of Transport proposed increasing the Official Development Assistance (ODA) loan from South Korea’s Economic Development Cooperation Fund (EDCF) from over VND3,677 billion to over VND4,462 billion.
The reciprocal funding for the project has been proposed to be revised up from VND1,093 billion to VND1,747 billion, an increase of VND653 billion.
The My An-Cao Lanh Expressway is around 26.56 kilometers long, stretching from Thap Muoi District to Cao Lanh District in Dong Thap Province. This four-lane expressway is designed to accommodate a maximum speed of 100 kilometers per hour in the first phase.
Once completed, the expressway is expected to greatly improve regional transportation and provide crucial connectivity to key infrastructure projects in the area, including Ho Chi Minh Road, National Highway N2, and the North-South Expressway in western Vietnam.
