At the signing ceremony (Photo: baogiaothong.vn)

Hanoi (VNA) – The Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Bac Giang-Lang Son BOT JSC have inked a credit contract worth over 10 trillion VND (440.4 million USD) to restart the Bac Giang-Lang Son expressway project, which was halted due to capital shortage.

Speaking at the signing ceremony on May 31, Deputy Minister of Transport Nguyen Hong Truong underscored that the project, which is built under BOT (Build-Operate-Transfer) form at a total cost of 12 trillion VND (528.5 million USD), is significant to enhance transportation capacity and contribute to socio-economic development of localities in the north.

Commercial bank’s tightening long-term loans together with poor financial capacity of the former investor hampered the project implementation, Truong stated.

He asked Deo Ca Investment Joint Stock Company, the new investor of the project, to join hands with local authorities to complete the compensation of site clearance and resettlement. The road must open to traffic by the end of 2019, he stated.

He hoped that Bac Giang and Lang Son provinces will coordinate with Bac Giang-Lang Son BOT JSC, consultancy companies and contractors to ensure the quality of construction, traffic safety and environmental hygiene.

According to Le Quynh Mai, Vice Chairman of the Board of Directors of Bac Giang-Lang Son BOT JSC, the BOT expressway project has two components: the construction of a 63.8 kilometre section of the Bac Giang-Lang Son expressway and the reinforcement of 110 kilometres of National Highway 1’s surface.

About 60-70 percent of work load on the upgrade of National Highway 1 has been completed so far. Meanwhile, the expressway construction will be restarted next month.

The 25 metre-wide Bac Giang-Lang Son Expressway is designed to have four lanes with a speed limit of 100 kilometres per hour. The National Highway 1 section has a speed limit of 60-80 kilometres per hour.

Five toll stations are scheduled to be established along the expressway while two others will be set up along National Highway Road 1.-VNA