Promoting less favorable World Bank loans for numerous large-scale transportation projects.

During a meeting with a World Bank (WB) delegation on the afternoon of October 2nd, Minister of Transport Truong Quang Nghia stated that the need for investment in transport infrastructure development is growing, while Vietnam's concessional loan (IDA) from the WB expired on July 1st, 2017.

Given the high level of public debt, Vietnam needs new and appropriate approaches to accessing IBRD (International Bank for Reconstruction and Development) loans from the World Bank.

Minister Nghia also stated that the Ministry of Transport is implementing many major transport projects, including: the North-South Expressway, Long Thanh International Airport, and the North-South high-speed railway line.

“Except for railway projects, which are very difficult to attract private investment, the Ministry of Transport’s policy for road and aviation projects is to mobilize social resources for investment and construction through public-private partnerships (PPP). We hope the World Bank will support these projects,” Minister Nghia said.

According to preliminary calculations, the total investment for the entire North-South expressway project, when completed, is approximately 312,435 billion VND.

On the World Bank's side, Franz R. Dress-Gross, Global Director for Transport and Communications, stated that the World Bank has supported Vietnam with $2.8 billion in investment to build rural road systems, inland waterways, highways, etc.

Currently, the World Bank also has five collaborative projects with the transportation sector worth approximately $1.5 billion.

“We understand that the Ministry of Transport is investing in the North-South expressway project, specifically the Hanoi-Ho Chi Minh City section, with a length of over 1,300km and an estimated total investment of over 10 billion USD. The World Bank could support this project with a comprehensive package,” said Mr. R. Dress-Gross.

In addition, the Ministry of Transport also proposed that the World Bank support the implementation of a new project using IBRD loans: the project to develop waterway and logistics corridors in the southern region. The project has a total investment of $300 million, of which $250 million will be borrowed from the World Bank's IBRD. Other potential projects include: the Dau Giay - Phan Thiet section of the North-South Expressway; and projects to upgrade the existing North-South railway infrastructure.

The North-South Expressway construction project starts at the Cao Bo intersection in Yen Yen district, Nam Dinh province, and ends at the Dau Giay intersection in Thong Nhat district, Dong Nai province. The total length is approximately 1,372 km, passing through 16 provinces and cities.

According to preliminary calculations, the total investment for the entire project, when fully completed, is approximately 312,435 billion VND.

However, in a recent document sent to the Prime Minister, the Ministry of Finance assessed that many aspects of the Ministry of Transport's plan lacked the necessary feasibility for project implementation.

According to Kieu Linh/vneconomy