Seven urgent transport projects funded by official developmentassistance will receive capital injections totalling 2-2.5 trillion VND(95-119 million USD) in 2014’s first round of advancing reciprocalcapital for projects, probably soon after April 30, the VietnamInvestment Review (VIR) reported on April 15.
The decisionhas made at a recent meeting among the misnitries of transport andfinance, the State Bank of Vietnam and Government Office.
These seven projects include a road linking Noi Bai internationalairport to Nhat Tan port in Hanoi, the Da Nang-Quang Ngai expressway,the Ben Luc-Long Thanh expressway, Hanoi’s urban railway section fromCat Linh to Ha Dong, Mekong Delta transport infrastructure development(WB5), upgrading the northern sub-Mekong region transport network(national highway 217) and the Lo Te-Rach Soi highway (Delta region).
“Thislist is temporary as they will only see capital injections oncedevelopers show that they have finalised disbursement of 70 percent ofthis year’s reciprocal capital before April 30 and have land acquisitionplans approved by local governments,” said Deputy Head of the Ministryof Planning and Investment (MPI)’s Infrastructure Department Tran DucToan.
Of these above listed projects, two highways developed bythe Vietnam Expressway Corporation (VEC) are reportedly in position 15days ahead of the deadline.
“We will disburse nearly 900 billionVND (42.8 million USD) in reciprocal capital to the Da Nang-Quang Ngaiand Ben Luc-Long Thanh expressway projects no later than mid-April,”said VEC General Director Mai Tuan Anh.
According to sources,additional reciprocal capital demands for the two projects are somewherein the area of 2.3 trillion VND (110 million USD) this year, with 1.5trillion VND (71.4 million USD) needed just by the latter. Constructionof the Ben Luc-Long Thanh expressway is slated to kick off in June.
Accordingto the Government Office, the National Assembly has approved only 8trillion VND (381 million USD) in reciprocal capital for the wholecountry for implementing ODA projects this year.
The transport sector is likely to be the biggest recipient with an expected 35 percent of the approved figure.
Ina document sent to the Prime Minister this March, the MoT proposed anadditional allocation of 8.2 trillion VND (392 million USD) inreciprocal capital for ODA projects this year.
This figure didnot include 2.5 trillion VND (121 million USD) to be sourced fromgovernment bonds, already ratified by the Prime Minister earlier thisyear.
“To achieve the full reciprocal capital demand for thisyear, ODA projects would have to disburse 35 trillion VND (1.66 billionUSD) to complete 245km of highways, 12km of key urban roads, upgrade167km of highway, complete the construction of the T2 terminal at NoiBai Airport, and more,” said the head of MoT’s Planning and InvestmentDepartment Nguyen Hoang.
Concerning ODA transport projects, therole of reciprocal capital is essential as it links with compensationand land acquisition, decisive factors in construction and generaldisbursement.
“Key transport projects have a huge demand forreciprocal capital this year and a slow disbursement pace could maketheir targets unrealisable,” said Toan from the MPI.-VNA
The decisionhas made at a recent meeting among the misnitries of transport andfinance, the State Bank of Vietnam and Government Office.
These seven projects include a road linking Noi Bai internationalairport to Nhat Tan port in Hanoi, the Da Nang-Quang Ngai expressway,the Ben Luc-Long Thanh expressway, Hanoi’s urban railway section fromCat Linh to Ha Dong, Mekong Delta transport infrastructure development(WB5), upgrading the northern sub-Mekong region transport network(national highway 217) and the Lo Te-Rach Soi highway (Delta region).
“Thislist is temporary as they will only see capital injections oncedevelopers show that they have finalised disbursement of 70 percent ofthis year’s reciprocal capital before April 30 and have land acquisitionplans approved by local governments,” said Deputy Head of the Ministryof Planning and Investment (MPI)’s Infrastructure Department Tran DucToan.
Of these above listed projects, two highways developed bythe Vietnam Expressway Corporation (VEC) are reportedly in position 15days ahead of the deadline.
“We will disburse nearly 900 billionVND (42.8 million USD) in reciprocal capital to the Da Nang-Quang Ngaiand Ben Luc-Long Thanh expressway projects no later than mid-April,”said VEC General Director Mai Tuan Anh.
According to sources,additional reciprocal capital demands for the two projects are somewherein the area of 2.3 trillion VND (110 million USD) this year, with 1.5trillion VND (71.4 million USD) needed just by the latter. Constructionof the Ben Luc-Long Thanh expressway is slated to kick off in June.
Accordingto the Government Office, the National Assembly has approved only 8trillion VND (381 million USD) in reciprocal capital for the wholecountry for implementing ODA projects this year.
The transport sector is likely to be the biggest recipient with an expected 35 percent of the approved figure.
Ina document sent to the Prime Minister this March, the MoT proposed anadditional allocation of 8.2 trillion VND (392 million USD) inreciprocal capital for ODA projects this year.
This figure didnot include 2.5 trillion VND (121 million USD) to be sourced fromgovernment bonds, already ratified by the Prime Minister earlier thisyear.
“To achieve the full reciprocal capital demand for thisyear, ODA projects would have to disburse 35 trillion VND (1.66 billionUSD) to complete 245km of highways, 12km of key urban roads, upgrade167km of highway, complete the construction of the T2 terminal at NoiBai Airport, and more,” said the head of MoT’s Planning and InvestmentDepartment Nguyen Hoang.
Concerning ODA transport projects, therole of reciprocal capital is essential as it links with compensationand land acquisition, decisive factors in construction and generaldisbursement.
“Key transport projects have a huge demand forreciprocal capital this year and a slow disbursement pace could maketheir targets unrealisable,” said Toan from the MPI.-VNA
