Vietnam MoT Seeks to Raise Cost for JICA-funded Expressway to $494M

The Vietnamese Ministry of Transport has proposed the government to raise total investment of Hanoi-Thai Nguyen expressway to VND10.33 trillion ($494 million) from VND9.15 trillion.  Of the sum, VND6.99 trillion is expected to come from the Japan International Cooperation Agency (JICA), the Dau tu newspaper reported on Feb 3.  The hike is blamed for fluctuation of construction material and designing changes of some added items, the ministry noted. Construction of the 61.3-kilometer highway which is designed to have six lanes to allow vehicles to travel at 100 km per hour was kicked off end-2009 and is slated for completion in 2013. This important project is part of a strategy to improve Vietnam’s transport system, replace former highway No 3 and boost economic exchanges between Hanoi and the northern mountainous areas surrounding Thai Nguyen. The joint venture contractors Civil Construction Engineering Corp (Cienco) No. 8, Truong Son General Construction Corp (TSC) and Vietnam Construction and Import-Export JS Corp (VINACONEX) won the tender to implement the project. (Dau Tu - Investment Feb 3 p2)