Ha Noi – Hai Phong Expressway Project

Signing Loan Agreement for Hanoi – Hai Phong Expressway Project

On 22 February, in Tokyo, the Vietnam Development Bank (VDB), Sumitomo Mitsui Banking Corporation (SMBC) and Citibank Japan entered into a Loan Agreement for the Hanoi – Hai Phong Expressway Project.

Under the Loan Agreement, SMBC and Citibank will jointly provide VDB with a loan of USD270 million as a fund for Package EX-3 and Package EX-8 under the Hanoi – Hai Phong Expressway Project at preferential interest rate. The term of loan is 15 years, including 4.5 years of grace period.

Nippon Export and Investment Insurrance Agency (NEXI) will provide insurance for the Loan Agreement under the unbinding insurance program of NEXI.

Replied to the correspodent of Vietnam News Agency, Mr. Dzung – General Director of VDB said that Hanoi – Hai Phong Expressway Project is very significant for economic development promotion in the Tonkin delta region through enhancing transport capacity in Hanoi – Hai Phong route.

Vietnam Ambassador Extraordinary and Plenipotenary to Japan Doan Xuan Hung  
addressed at the Ceremony. (Photo: VNA in Tokyo)

In addition, this Project is also very important for the Japanese investors because the Tonkin delta is a region in Vietnam where many Japanese enterprises invest in and run their business.

Sharing point of view with the Leader of VDB, Mr. Marc Merlino, Representative Director & Vice President of Citibank Japan Ltd., said that the creation of Hanoi – Hai Phong Expressway Project will facilitate travel between the two cities and support over 200 Japanese enterprises opererating along the two sides of the route.

Also, Vice President of NEXI Fuminori Inagaki said that Tonkin delta is the economic center of the Northern Vietnam. Therefore, the Hanoi – Hai Phong Expressway Project will not only promote economic development in this region but also create significant changes in business operations of Japan enterprises in Vietnam.

According to VDB, the Hanoi – Hai Phong Expressway is the first expressway in Vietnam constructed in accordance with the internatinal technical standards.

The Expressway has total length of 105.5km, with starting point on the Ring Road III, Gia Lam district (Hanoi) and ending point at Dinh Vu dam (Hai Phong city). The average cross section of the Expressway is 100m, including the carriageway width of 33m and average cross section of the Embankment of 50m. The maximum design speed is 120km/h.

This Project is divided into 10 civil work packages and executed under the BOT scheme since 2008. By the mid-February 2012, 9 out of 10 civil work packages were commenced. As scheduled, the final package will be commenced in this year.

The Prime Minister assigned VDB to mobilize local and international funding sources for the Project.

Source: VNA