The Bank for Investment and Development of Vietnam (BIDV) will provide nearly 3 trillion VND (141 million USD) in loans to expand a 70-km section of the north-south National Highway 1.

The loan will help upgrade the 29-km section of the highway that runs through the central province of Binh Dinh and another 40-km section connecting Binh Dinh Province 's Tuy Phuoc district to central Phu Yen province's Song Cau district.

For the 29-km expansion, the BIDV committed to supply nearly 1.4 trillion VND (65 million USD) to the Binh Dinh BOT Joint Stock Company. The project will start from the province's Hoai Nhon district in the 2014-16 period. The loan term will be 19 years and three months.

The 40-km project, worth 2 trillion VND (94 million USD), would be implemented from now until 2015 with a loan term of 14 years and six months.

This is part of a 30 trillion VND (1.4 billion USD) credit package the bank signed early last year with the Ministry of Transport to fund the Build-Operate-Transfer project to enlarge the highway.

National Highway 1A, which is of significant importance for the country's socio-economic development and national defence, has seriously deteriorated in recent years, leading to congestion and accidents.-VNA