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Ministry asks PM to approve extra funding for tunnel project

The Ministry of Transport has proposed Prime Minister Nguyen Xuan Phuc approve the allocation of an additional 1.18 trillion VND (51.7 million USD) from the State budget to Deo Ca Tunnel Project.
Ministry asks PM to approve extra funding for tunnel project ảnh 1The southern gate of Deo Ca Tunnel (Photo: VNA)
Hanoi (VNS/VNA) - The Ministry of Transport has proposed PrimeMinister Nguyen Xuan Phuc approve the allocation of an additional 1.18 trillionVND (51.7 million USD) from the State budget to Deo Ca Tunnel Project.

Theproject aims to build road tunnels through Deo Ca (including the tunnelsof Deo Ca, Co Ma, Cu Mong, and Hai Van). The Deo Ca Tunnel Project runs throughthe Ca Pass on National Highway 1A linking the two central provinces of Phu Yenand Khanh Hoa and construction began in 2012.

TheDeo Ca Tunnel, which was put into operation in August last year, is thesecond-longest mountain road tunnel in the country, after the Hai Van Tunnel,which is 6.28 kilometres long and runs between Thua Thien-Hue province and DaNang city.

Underthis further budget allocation, the Hai Van tunnel expansion project would beexpected to be put into operation soon.

Theproposal signed by Deputy Minister of Transport Le Dinh Tho stated that DeoCa Tunnel Project is a national key project, playing an important role insocio-economic development, ensure national defence and security in the centralprovinces and the Central Highlands.

Currently,Deo Ca, Co Ma and Cu Mong tunnels are in use, contributing to solvingcongestion, creating favourable conditions for connectivity and promotingsocio-economic development for central coastal provinces, according to theministry’s proposal.

TheHai Van tunnel expansion work was the final implementation item of the Deo Caproject, that was tested and approved by the State Council for the Acceptanceof Construction Works.

Currently,the Ministry of Transport is working with the investors tocomplete procedures to put the Hai Van tunnel expansion project intooperation soon.

“However,the Deo Ca project's finance is facing some problems including the allocationof 1.18 trillion VND State budget capital, and the La Son-Tuy Loanstation's toll fees have not been completely resolved,” Tho said.

“Itaffects the funding for operation and maintenance of tunnel works and bankrepayment plans,” he said. The ministry has developed a plan to allocatemid-term investment money and the State budget capital in 2020 for the project.

Theministry consulted with the National Assembly Finance and BudgetCommittee, Ministry of Planning and Investment, Ministry of Finance andVietinbank, proposing the Prime Minister for approving the allocation of 50billion VND, and the rest will be allocated in 2021 and the period of2021-2025./.
VNA
#Ministry of Transport #Deo Ca Tunnel Project #State budget #Hai Van tunnel expansion project #vietnamplus #vietnam news agency
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