Vietnam Railway to start up five key projects this year

The Vietnam Railway Corporation (VEC) plans to spend nearly VND11.6 trillion (US$682 million) on the five key constructions to be started up this year.

Under its plan, the corporation will invest VND2.55 trillion (US$150 million) to upgrade the current Hanoi-Lao Cai line, and VND1.08 trillion (US$63.5 million) in the second phase of the Hanoi-Vinh railway signal project.

Besides, a huge fund of VND4 trillion (US$235.3 million) will be mobilized for replacing wooden ties by concrete ones on the Vinh-Nha Trang railroad and VND3.79 trillion (US$222.9 million) will be funded for upgrading 44 bridges on the north-south railway.

A source from VEC told the Daily last Thursday that the Hanoi-Lao Cai railway upgrading project in the north was one of most important projects of the corporation. The corporation is making technical research and the project will be started in December for scheduled completion in 2012.

In early 2007, the Asian Development Bank (ADB) signed an agreement with the State Bank of Vietnam to provide a US$60-million loan for the project to upgrade this 285-kilometer railway. The obsolete railway links Yen Vien Station outside Hanoi’s downtown and the upland province of Lao Cai, which borders southern China.

The Hanoi-Lao Cai line accommodates substantial domestic traffic as well as rapidly growing regional traffic between Haiphong port in the north and China’s Yunnan Province. The ADB loan covers around 38% of the project’s fund, while the French development agency (AFD) will provide a loan of 32 million euro and the French ministry of finance will lend 30 million euro to the project. The Vietnamese Government will contribute the rest.

In related development, Prime Minister Nguyen Tan Dung last Thursday had a meeting with top leaders of the transport ministry and Vietnam Railway Corporation to review the corporation’s business.

The Government Website quoted the Prime Minister as urging the corporation to speed up the preparation work for the mammoth north-south express railway project.

He asked the railway corporation to join force with relevant agencies to speed up work on mapping out the master plan and investment plan for the huge project before relevant agencies seek ways to mobilize funds and start talks over loans from international donors this year.

VietNamNet, SGT

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