Vietnam and the World Bank are discussing loans of $5 billion-$7 billion to implement major railway and highway projects as the country strives to make a breakthrough in infrastructure development.
This was announced at a Monday meeting in Hanoi between Minister of Transport Nguyen Van Thang and World Bank Country Director for Vietnam Carolyn Turk.
The discussions followed up on a meeting between Vietnamese Prime Minister Pham Minh Chinh and WB Group President Ajay Banga on the sidelines of ASEAN summits in Jakarta, Indonesia on September 7. The PM had then broached the subject of $7 billion in funding over a three-year period for major infrastructure projects.
At Monday’s meeting, Minister Thang tabled several projects that required funding including a $3.2 billion first phase for a 140-km railway project connecting Bien Hoa and Vung Tau city in the southern provinces of Dong Nai and Ba Ria-Vung Tau, respectively. A pre-feasibility study will be done in the first half of next year for the World Bank to assess, he said.
Another two projects mentioned by the minister were in the central region – the 151-km Pleiku-Quy Nhon highway and the 70km Cam Lo-Lao Bao highway. Pre-feasibility studies for the four lane highways, estimated to cost VND44 trillion ($1.8 billion) and VND14.5 trillion ($594 million), respectively, will be ready mid-2024, the minister said.
Vietnam also needs technical assistance for high-speed railways, highways and emissions-reducing projects, as also personnel training assistance, Thang said.
Turk said the World Bank was willing to assist Vietnam with infrastructure development and asked for further details. She stressed the need to ensure that schedules are met, starting with site clearance.
She also pledged to find non-financial support for the ministry’s projects in terms of capacity building and effective operation of infrastructure works.