Investment of VND 7,300 billion to connect the transport of Northwest region to the Noi Bai-Lao Cai Expressway

HANOI, June 19 (Engineering Daily) -- The PMU2 has just submitted to the MOT the proposal of transport connection of Northern mountainous using ODA loans from Asian Development Bank (ADB) for approval.

The project includes 2 routes connecting to Expressway Noi Bai-Lao Cai, including the route connecting from Lai Chau and other from Nghia Lo (Yen Bai Province).

In particular, the Lai Chau route connecting with the Noi Bai-Lao Cai Expressway is started from Km34+800, highway 4D, Lai Chau City and ended at intersection IC.16 Km198+730 of the Noi Bai-Lao Cai Expressway. The route which is 137km long, is built in conformity to the mountain road Grade III, including 16 km of newly built road and 121 km of upgraded one.

The Nghia Lo route connecting with the Noi Bai-Lao Cai Expressway is started from Km209+500, highway 32, Nghia Lo Town, Yen Bai Province and ended at intersection IC14, Km149+705 of the Noi Bai-Lao Cai Expressway. The 52.5 km route is built in conformance to the mountain road Grade IV.

The total investment of project is VND 7,300 billion, including VND 6,600 billion from ADB loans (equivalent to USD 300 million); VND 700 billion of counterpart funds (equivalent to USD 35 million).

Since the project capital cannot be recovered, but it will impact positively to the whole Northwest region, PMU2 has suggested MOT to request the Government to accept the 100% loan allocation mechanism application.

The construction of connecting routes will help to improve the infrastructure of Northwest, as well as to promote the investment efficiency of the Noi Bai-Lao Cai expressway.

The Noi Bai-Lao Cai expressway project that was invested and managed by Vietnam Expressway Corporation (VEC), was started on 25 April 2009 and put into operation on 21 September 2014. This is the longest expressway in Vietnam so far (245km), passing 5 provinces/cities including Hanoi, Vinh Phuc, Phu Tho, Yen Bai and Lao Cai.

Since the date putting into the operation, the Noi Bai-Lao Cai Expressway has shortened the travelling time between Hanoi and Lao Cai from 7 hours to 3.5 hours. Even in the adjacent provinces such as Lai Chau, the number of tourists, goods and provincial revenue has been increased dramatically. The transportation businesses has saved 20-30% of cost, reducing the product costs and improving the competitiveness of the goods; estimated it benefits the society about VND 1,800 billion per year from savings in terms of time, fuel and wear and tear costs.