ADB funds Vietnam road study

The Asian Development Bank (ADB) has agreed to provide loans and grants to finance preparations for three expressways in Viet Nam, which it is hoped will support sustainable economic growth and enhance socio-economic development in the project areas, said the Bank in a statement on its website.

Two expressways will connect Ha Noi and Lang Son, and Ha Long and Mong Cai in the northeastern region of Viet Nam (Greater Mekong Subregion [GMS] Eastern Corridor). They are expected to strengthen economic ties with the People's Republic of China (PRC), especially the Guangxi Zhuang Autonomous Region.

The other expressway will connect Ben Luc and Long Thanh in the southern region of Viet Nam (GMS Southern Corridor). This will boost economic activities in the greater Ho Chi Minh City area.

In preparation for the projects the ADB will provide a US$ 26 million technical assistance loan in special drawing rights. In addition, it will provide a separate grant of US$ 1.5 million for a feasibility study on the section of the GMS Eastern Corridor, and a US$ 1.5 million grant from its Japan Special Fund for a feasibility study on the expressway of the GMS Southern Corridor.

The ADB loan funds will be used to draw up detailed designs so the expressways are built to "high technical and safety standards", said the statement, and to "beef up the capacity and management expertise" of the Viet Nam Expressway Corporation, which will implement the projects.

"The expressways will reduce travel costs and improve road safety; and ultimately support sustainable economic growth and enhanced economic exchanges, as well as reducing poverty and increasing livelihood opportunities in the project areas," said Yasushi Tanaka, a transport specialist with the ADB's Southeast Asia Department.