A consortium of Vietnam construction giant Deo Ca and South Korea’s IlSung Vietnam Co., Ltd has won a VND552 billion ($22.7 million) contract to build two tunnels on the Hanoi-Ho Chi Minh City railway route.
The contract was signed on Tuesday by the consortium and the Railway Project Management Unit.
The construction package, called XL01, is an important part of the project to upgrade the Khe Net railway section.
It will be implemented in 23 months using official development assistance (ODA) from the Economic Development Cooperation Fund (EDCF).
The two railway tunnels are located in Huong Hoa and Kim Hoa communes, Tuyen Hoa district, Quang Binh province, central Vietnam.
The first tunnel, 620 meters long, is expected to be built in 23 months, while the second, 393 meters long, will be completed in 13.5 months. Both tunnels will have a width of 10 m and have been designed following Level I railway tunnel standards.
Speaking at the contract signing ceremony, Lee Sang-hyun, CEO of Ilsung Vietnam, stressed the project’s importance as a harbinger for future railway projects in Vietnam. He said his company would make every effort with Deo Ca to complete the project on schedule, ensuring best quality.
He said that IlSung has built major highways and tunnels in South Korea including the Yeoju - Yangpyong Highway No. 45 and Sinlim Line light railway. In Vietnam, it has participated in the XL04 bidding package, also financed by the EDCF, for renovating weak bridges on national highways (Phase I).
Nguyen Huu Hung, vice chairman of Deo Ca, said the group has successfully won bids to develop many projects including the Cam Lam-Vinh Hao Expressway with an investment capital of VND8.9 trillion ($366.7 million); Quang Ngai-Hoai Nhon Expressway, VND20.4 trillion ($840.55 million); a project to expand Prenn Pass in the Central Highlands province of Lam Dong, VND550 billion ($22.66 million); and most recently, the Dong Dang-Tra Linh Expressway, VND14.3 trillion ($589.2 million).
Besides, Deo Ca has actively collaborated with universities, vocational colleges, and international partners to conduct training programs to prepare personnel for railway and metro projects, he said.
“Securing the bid for this project is a significant milestone for Deo Ca, capturing a larger share in railway undertakings,” he added.
Deo Ca, known as the "Tunnel King" in Vietnam, is well known for building the Co Ma, Deo Ca, Cu Mong and Hai Van 2 tunnels. It has also built the Bac Giang-Lang Son and Trung Luong-My Thuan expressways, and completed packages for major projects on the North-South Expressway.