WB provides US$14 million for Hanoi Highway expansion

Nhan Dan Online/VNA - A credit contract worth VND289.75 billion (US$13.75 million) to develop the second phase of a BOT (Build-Operate-Transfer) project to extend the Hanoi Highway was recently signed with the World Bank.

Image for illustration (Photo: baodautu.vn)
Image for illustration (Photo: baodautu.vn)

The signatories were the HCM City Financial Investment Company (HFIC) and the Hanoi Highway Investment and Construction Joint-Stock Company. The loan will be sourced from the WB's Local Development Investment Fund, to be repaid over 14 months.

The second phase of the project includes the expansion of a three-kilometre stretch of the highway starting from the Thu Duc intersection, as well as an upgrade of service roads stretching from Saigon Bridge to Rach Chiec Bridge.

The second phase, with an investment of VND518 billion (US$24.57 million), is expected to be finished by early next year.

The first phase has received a total investment of VND497.7 billion (US$23.61 million), of which VND290.5 billion (US$13.78 million) was sourced from the HFIC.

To confirm eligibility for the Local Development Investment Fund capital, HFIC assessed the project and ensured that the investor was in compliance with World Bank capital borrowing procedures.