According to the above agreement, SMBC and Citibank will coordinate to arrange and lend VDB 270 million USD to finance packages 3 and 8 of the Hanoi-Hai Phong expressway project with preferential interest rates. The loan term is 15 years, including a grace period of 4.5 years.

The Japan Export and Investment Insurance Agency (NEXI) will insure this loan contract under NEXI's optional insurance program.

In an interview with a Vietnam News Agency reporter, Mr. Dung said the Hanoi-Hai Phong expressway project is important in promoting the economic development of the Northern Delta region through improving traffic capacity on the Hanoi-Hai Phong route.

Besides, this project is also very important for Japanese investors because the Northern Delta is an area where many businesses from the "Land of the Rising Sun" are investing and doing business in Vietnam.

Sharing the same opinion as VDB leader, Mr. Marc Merlino, Representative Director and Vice President of Citibank Japan Ltd., said that with the Hanoi-Hai Phong expressway project, Vietnam will benefit from more favorable traffic conditions between the two cities, while the Japanese side will support more than 200 of this country's businesses operating along both sides of the route.

NEXI Vice President Fuminori Inagaki said the Northern Delta is the northern economic center of Vietnam. Therefore, the Hanoi-Hai Phong expressway project will not only help promote economic development in this area but also create big changes in the business activities of Japanese enterprises in Vietnam.

According to VDB, the Hanoi-Hai Phong expressway is Vietnam's first expressway built according to international technical standards.

This road has a total length of 105.5km, with the starting point located on Belt III in Gia Lam district (Hanoi) and the ending point is Dinh Vu dam (Hai Phong). The average cross-section width of the road is 100m, of which the main road cross-section is 33m wide and the average roadbed cross-section is 50m. Maximum design speed is 120km/h.





This project is divided into 10 packages and has been implemented in the BOT form since 2008. By mid-January 2012, the project had started construction on 9/10 main construction packages. As expected, the final bidding package will start construction this year.

The Prime Minister has assigned VDB the task of mobilizing capital for the project from domestic and foreign capital sources.

Source VNA