ADB to Grant $1M to Road Transport Development in Vietnam

The Asian Development Bank (ADB) has agreed to provide a $1 million non-refundable loan to help Vietnam to increase efficiency in road transport management and attract investment for road transport projects. The grant, funded by the Japanese government, will provide the Ministry of Transport and its support agencies with guidelines to strengthen institutional and financial arrangements, operation and maintenance. The Japanese bank will develop a plan for long- and medium-term institutional enhancement for Vietnam Expressway Management Administration, the state-run Vietnam News Agency said. ADB is also researching on capital mobilization method for Vietnam’s North-South Expressway Project, which is estimated to cost $17.9 billion and covering 1,811 kilometers stretching from Hanoi in the north to Can Tho in the Mekong Delta. The capital is expected to source from public private partnerships (PPP) and the official development assistance (ODA). The funding will facilitate Vietnam improve the cost effectiveness of road projects by reducing life-cycle costs and enhancing the sustainability of expressways, national and local roads. Vietnam is in need of capital for its road transport projects. Participation of private firms is very important in narrowing financial distance between demand of infrastructure and available budget, Masahiro Nishimura, an expert from ADB said. (www.vietnamplus.vn Oct 19)