HA NOI (VNS)— The transport sector has received the largest amount of Japan's official development assistance (ODA) loans in Viet Nam, totalling approximately 80 billion yen (nearly US$780 million) in 2013, according to the Vietnamese Ministry of Transport.
By the end of this year, the Japanese Government has assisted the Vietnamese transport sector in completing 18 projects, with a total investment of $2.34 billion.
The Japanese government has also helped to carry out 28 ongoing projects with a total investment of roughly $7.42 billion. Further, Japan has cooperated with other sponsors to fund three projects with investments of nearly $4 billion.
In mid-year, the Ministry of Transport proposed 29 projects that would receive ODA loans from Japan in the period 2013-15 with a total investment of 470 billion yen ($6 billion).
The list includes large-scale construction on urban transport facilities, highways, seaports, airlines and railways.
Besides projects with additional loans, there are 15 major projects, such as Long Thanh International Airport in southern Dong Nai Province and Bac-Nam (North-south) highway from Nha Trang City in central Khanh Hoa Province to Phan Thiet City in central Binh Thuan Province.
According to Dau Tu (Viet Nam Investment Review) online newspaper, the project for the first flyover highway on belt road No 3 in Ha Noi City, linking Cau Giay District's Mai Dich and Hoang Mai District's Phap Van, would be the latest one in the list of projects, which is expected to borrow capital from the Japan International Cooperation Agency (JICA) in part one of the fiscal year 2013.
It is reported that JICA approved a draft loan agreement for the project in mid-year.
The Thang Long project management board is assigned to prepare the project by the ministry. As quoted in the newspaper, board general director Vu Xuan Hoa said the total length of the road was 5.364km.
Joint project supervisor Oriental Consultants-Kei of Japan and Tedi-Apeco of Viet Nam suggested constructing the second flyover highway on belt road No 3 with four lanes and a speed limit of 100km/h.
They estimated that the total investment of the project would be VND5,343.4 billion ($254.4 million). This included the cost of construction, at VND3,696 billion ($176 million) taken from the ODA loan of JICA. The project was expected to be finished in 56 months, with 28 months of construction.
"Built based on the standards of urban highways, it will link belt road No 3, which has seen the largest number of vehicles in Ha Noi from Thanh Tri bridge to Thang Long bridge, as well as connect national roads No 1, No 5, No 6 and No 32 with the Noi Bai International Airport," Hoa said.
Meanwhile, construction of the new T2 terminal at the Noi Bai International Airport is also listed to receive capital in part 1 of fiscal year 2013. This is a major transport project in Ha Noi that the ministry had sped up so it could be finished in 2014.
Currently, the ministry and JICA decided to allocate capital for three projects in part two of fiscal year 2013, consisting of a highway from HCM City to Dong Nai Province's Dau Giay (third loan worth 17 billion yen, or $165.4 million), Da Nang-Quang Ngai highway (second loan worth 30 billion yen, or $291.9 million) and Lach Huyen Port infrastructure construction project in Hai Phong City (second loan worth 19.3-21 billion yen, or $187.7 million).
Deputy minister Truong Tan Vien said that these were important large-scale projects that could change trans-regional transport in the area.
"When the State has faced budget difficulties, ODA capital from Japan, with low interest rates, will still play a significant role in the coming years," he said. — VNS