Minister: Vietnam to Disburse US$1.5 Bln of Transport Projects This Year

Vietnam is expected to disburse up to VND25,365 billion (US$1.5 billion) of transport projects this year, up 30 per cent on year, according to Minister of Transport Ho Nghia Dung.

 

Of the total funds, US$286.2 million will be used for 29 ODA-funded projects; US$588.2 million for 31 g-bond-financed projects and US$206 million for 52 projects financed through the state budget.

 

“This is biggest-ever disbursement for transport projects so far,” Minister Dung said.

 

“The program will provide an opportunity for contractors, including state-owned construction corporations, joint stock and private companies,” Dung added.

 

Directors of several transport construction corporation have shown strong optimism about the planned disbursement thanks to low-interest loans and falling material and fuel costs and particularly the ministry has decided to advance up to 80 per cent of the semi-completed projects.

 

Many investors have expressed their intention to participate in bidding for ODA-funded bridge, roads and port projects. And the few to participate had lodged bids 20 per cent-30 per cent higher than the nominated cost.

 

Construction Management and Quality Control of Transport projects director Tran Quoc Viet says foreign investors are not interested in transport projects because the fluctuation in the price of construction materials and the delay in land clearance have deterred foreign investors.

 

“That’s the key reason that many major projects, including the Nhat Tan bridge-across the Red River in Hanoi; the Hanoi-Thai Nguyen express way and the Van Phong port have been delayed,” he said. (Vietnam Economic Times)