Monday, November 05, 2007

ADB pledges to loan Vietnam $1.1 bln for expressway construction

The Asian Development Bank (ADB) has pledged to loan Vietnam nearly 1.1 billion U.S. dollars for the construction of the first phase of the Noi Bai-Lao Cai expressway, local newspaper Vietnam News reported Monday.

ADB's Ordinary Capital Resources will provide 896 million dollars, while the other 200 million dollars will come from the bank's concessional Asian Development Fund. The total amount needed for the first phase of the project is estimated to be over 1.2 billion dollars, and the remaining 120 million dollars will be met by a bond issuance.

Vietnamese Prime Minister Nguyen Tan Dung recently asked the State Bank of Vietnam to complete all related documents to prompt negotiation and signing a credit agreement with ADB.

The expressway will link Hanoi with the northern Lao Cai province bordering with China's Yunnan province, joining China's Kunming-Hekou Highway at Quang Kim commune, Bat Xat district in Lao Cai.

Source: Xinhua/Agencies