Ministry asks PM to approve extra funding for tunnel project

January 04, 2021 - 08:00
The Ministry of Transport has proposed Prime Minister Nguyễn Xuân Phúc approve the allocation of an additional VNĐ1.18 trillion (US$51.7 million) from the State budget to the Đèo Cả Tunnel Project.

 

The southern gate of Đèo Cả Tunnel. — VNA/VNS Photo 

 HÀ NỘI — The Ministry of Transport has proposed Prime Minister Nguyễn Xuân Phúc approve the allocation of an additional VNĐ1.18 trillion (US$51.7 million) from the State budget to the Đèo Cả Tunnel Project.

The project aims to build road tunnels through Đèo Cả (including the tunnels of Đèo Cả, Cổ Mã, Cù Mông, and Hải Vân). The Đèo Cả Tunnel Project runs through the Cả Pass on National Highway 1A linking the two central provinces of Phú Yên and Khánh Hòa and construction began in 2012.

The Đèo Cả Tunnel, which was put into operation in August last year, is the second-longest mountain road tunnel in the country, after the Hải Vân Tunnel, which is 6.28 kilometres long and runs between Thừa Thiên in Huế Province and Đà Nẵng City.

Under this further budget allocation, the Hải Vân tunnel expansion project would be expected to be put into operation soon.

The proposal signed by Deputy Minister of Transport, Lê Đình Thọ stated that Đèo Cả Tunnel Project is a national key project, playing an important role in socio-economic development, ensure national defence and security in the central provinces and the Central Highlands.

Currently, Đèo Cả, Cổ Mã and Cù Mông tunnels are in use, contributing to solving congestion, creating favourable conditions for connectivity and promoting socio-economic development for central coastal provinces, according to the ministry’s proposal.

The Hải Vân tunnel expansion work was the final implementation item of the Đèo Cả project, that was tested and approved by the State Council for the Acceptance of Construction Works.

Currently, the Ministry of Transport is working with the investors to complete procedures to put the Hải Vân tunnel expansion project into operation soon.

“However, the Đèo Cả project's finance is facing some problems including the allocation of VNĐ1.18 trillion State budget capital, and the La Sơn-Túy Loan station's toll fees have not been completely resolved,” Thọ said.

“It affects the funding for operation and maintenance of tunnel works and bank repayment plans,” he said. The ministry has developed a plan to allocate mid-term investment money and the State budget capital in 2020 for the project.

The ministry consulted with the National Assembly Finance and Budget Committee, Ministry of Planning and Investment, Ministry of Finance and Vietinbank, proposing the Prime Minister for approving the allocation of VNĐ50 billion, and the rest will be allocated in 2021 and the period of 2021-2025. — VNS

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