Highway 1 to receive $141m

Highway 1 to receive $141m

The Bank for Investment and Development of Viet Nam (BIDV) will provide nearly VND3 trillion (US$141 million) in loans to expand a 70-km section of National Highway 1.

The loan will help upgrade the 29-km section of National Highway 1 that runs through the central province of Binh Dinh and another 40-km section connecting Binh Dinh Province's Tuy Phuoc District to central Phu Yen Province's Song Cau District.

For the 29-km expansion, BIDV committed to supply nearly VND1.4 trillion ($65 million) to the Binh Dinh BOT Joint Stock Company. The project will start from the province's Hoai Nhon District in the 2014-16 period. The loan term will be 19 years and three months.

The 40-km project, worth VND2 trillion ($94 million), would be implemented from now until 2015 with a loan term of 14 years and six months.

This is part of a VND30 trillion ($1.4 billion) credit package the bank signed early last year with the Ministry of Transport to fund the Build-Operate-Transfer project to enlarge the highway.

National Highway 1A, which is of significant importance for the country's socio-economic development and national defence, has seriously deteriorated in recent years, leading to congestion and accidents.

vietnamnews