The World Bank will lend Vietnam $5-7 billion for railway and highway projects.

The World Bank (WB) has announced it will consider lending Vietnam $5-7 billion to invest in major transport infrastructure projects.

Today, October 16th, Minister of Transport Nguyen Van Thang met with Ms. Carolyn Turk, World Bank Country Director for Vietnam, to discuss ongoing transport projects and future plans.

The Minister of Transport worked with the World Bank Director in Vietnam.

MINISTRY OF TRANSPORT

Previously, at a meeting on September 7th between Prime Minister Pham Minh Chinh and World Bank President Ajay Banga, the Prime Minister requested that the World Bank lend Vietnam 5-7 billion USD over the next three years to invest in transportation infrastructure projects, especially railways, expressways, national highways, and major urban transportation infrastructure.

According to Carolyn Turk, the World Bank wants the Ministry of Transport to propose specific projects for investment, outlining how they can be implemented, and ensuring they can be completed within the timeframe set by the Prime Minister.

Minister Nguyen Van Thang stated that the project to develop waterway and logistics corridors in the southern region is facing procedural obstacles, leading to delays.

The Ministry of Transport has directed adjustments to routes and is aggressively implementing solutions to remove obstacles and accelerate progress. It is expected that the feasibility study report will be approved in October, so that the loan agreement can be signed in December.

He also suggested that the World Bank consider allocating loan capital to several important projects. Specifically, in the railway sector, there is the Bien Hoa - Vung Tau railway project, 140 km long, double/single track, 1,435 mm gauge, with a total phased investment of approximately 3.2 billion USD for the single track.

Currently, the domestic consultant has completed the interim report; the pre-feasibility study (Pre-FS) report will be completed in the first six months of 2024, after which the World Bank will have access to the study documents.

In the road sector, there are two expressway projects: the Pleiku - Quy Nhon route and the Cam Lo - Lao Bao route. The Pleiku - Quy Nhon route is 151 km long, with 4 lanes, and a total investment of approximately 35,800 billion VND for 4 lanes of 17 m width, and approximately 44,000 billion VND for a fully completed 4-lane route.

The Cam Lo - Lao Bao route is 70 km long, with 4 lanes, and a total investment of approximately 10,800 billion VND for 4 lanes (17 m wide), and about 14,500 billion VND for a fully completed 4-lane road. Domestic consultants are currently completing the mid-term reports for both projects, with the pre-feasibility reports expected to be completed by mid-2024.

Minister Thang also requested the World Bank to support technical assistance projects, focusing on high-speed rail, expressways, and projects and initiatives related to reducing greenhouse gas emissions in the transport sector and fulfilling Vietnam's commitments at COP26.

Specifically, regarding railways, research will focus on developing standards for urban railways and high-speed railways suitable for Vietnam's conditions; and researching and proposing solutions for transporting containers by rail at seaports and warehouses.

World Bank Country Director for Vietnam, Carolyn Turk, stated that the World Bank is ready to study and support infrastructure projects. Simultaneously, it will seek other sources of support besides loans to assist the Ministry of Transport in technical assistance projects aimed at modernizing, digitizing, and improving the quality of human resources in the effective management and operation of infrastructure projects after investment.

Thanhnien.vn