Hanoi (VNA) – A credit contract worth 2.3 trillion VND (92.1 million USD) for the Dong Dang (Lang Son) - Tra Linh (Cao Bang) expressway project, developed under the public-private partnership (PPP) model, was signed at a ceremony on October 4.
The contract, signed by the Dong Dang-Tra Linh Expressway JSC and the Vietnam Prosperity Joint Stock Commercial Bank (VPBank), marks a milestone in securing specific financing for the PPP++ model proposed by the Deo Ca Group. This collaboration aims to mobilise social resources to ensure the project's feasibility. Furthermore, it serves as a foundation for the enterprise to address financing issues in other PPP projects.
The expressway spans a total length of 121km, with a total investment of nearly 23 trillion VND, divided into two phases. In the first phase, over 93km will be constructed with funding of over 14.3 trillion VND. The construction, beginning on January 1, 2024 is expected to be completed before the 2026 Lunar New Year.
The route will begin at Tan Thanh border gate interchange in Van Lang district, Lang Son province, and will end at National Highway No.3 interchange in Cao Bang province.
Speaking at the signing ceremony, Tran Hong Minh, Secretary of the Cao Bang Provincial Party Committee, said Cao Bang has been one of the country’s most disadvantaged mountainous localities, grappling with significant transport limitations and challenging terrain.
To spur the province’s development and improve living standards, there is no alternative but to focus on enhancing transport infrastructure, particularly the Dong Dang-Tra Linh expressway, he stressed, adding this route will serve as a vital economic artery, connecting Hanoi to remote northern border areas.
The official said the expressway is of significant importance in terms of politics, economy, culture, national defence, and foreign affairs, and expressed his belief that it will help Cao Bang bridge closer to its surrounding provinces.
Once completed, the expressway will serve as a model route, reflecting the rich culture of the Northeastern region, he continued.
Minh said since the project was launched on January 1, 2024, Cao Bang’s authorities have worked hard in the compensation and land clearance work, addressing obstacles facing the investors, and minimising project impact on production and daily activities of local residents.
This signing ceremony is a milestone in securing financing for the project, Minh said, adding the support of financial institutions will contribute to its success and open up long-term economic development opportunities for the northern border region.
Once completed, the expressway is expected to boost the local economy by facilitating investment and operation of enterprises, while increasing growth opportunities for the local tourism sector.
Ho Minh Hoang, Chairman of the Board of Directors of Deo Ca Group, said that with this particular project, the company has successfully diversified capital mobilisation sources in Vietnam.
This success is attributed to supportive policy mechanisms, the financial capabilities of investors and banks, and the commitment to earning the trust of the residents in both provinces, he said./.
