Southern Vietnam's My An-Cao Lanh Expressway Project Seeks Additional $60 Million Funding

According to the Ministry of Transport, the Vietnamese Prime Minister has approved the first phase of the My An-Cao Lanh Expressway project, which has a price tag of $201.1 million. The funding for the project includes a $158.8 million loan from South Korea’s Economic Development Cooperation Fund (EDCF) as an Official Development Assistance (ODA), covering construction, equipment, technical consulting, design, and construction supervision costs. Additionally, a reciprocal funding of VND1.1 trillion ($46.4 million) will be used for value-added tax payments, project management, and site clearance costs.

However, the Ministry of Transport has reported an increase in expenses for site clearance, construction, project management, and contingency costs. As a result, the ministry has sought approval from the government to increase the ODA loan to approximately VND4.5 trillion ($188 million) and the reciprocal capital to over VND1.7 trillion ($71.8 million).

The My An-Cao Lanh Expressway project spans 26.56 kilometers, starting from N2 Road in My An Town, Thap Muoi District, Dong Thap Province, and ending at the An Binh Intersection in Cao Lanh City, Dong Thap. Once completed, the expressway will allow for a maximum speed of 100 kilometers per hour and will feature six lanes measuring 32.25 meters wide. In the first phase, the road will have four lanes with a width of 17 meters and a designed speed of 80 kilometers per hour. Construction is expected to take five years since the ODA loan agreement with the EDCF came into effect.

The Ministry of Transport has consulted with other ministries and localities regarding the proposed adjustments to the investment plan for the first phase of the My An-Cao Lanh Expressway project. Additionally, the ministry has requested clarification from the Export-Import Bank of Korea regarding its ability to provide the $188 million ODA loan for the project.