The Vietnamese Ministry of Transport has proposed the prime minister increase the investment for the My An-Cao Lanh Expressway project in the Mekong Delta province of Dong Thap by over VND1.43 trillion (US$60.3 million) to VND6.2 trillion ($261.4 million) from VND4.77 trillion ($201.1 million).

The Vietnamese prime minister approved the first phase of the expressway project and its $201.1 million price tag on December 27, 2021, according to the Ministry of Transport.

Of the total capital needed, some $158.8 million would be borrowed from South Korea’s Economic Development Cooperation Fund (EDCF) as an ODA loan to make payments for construction, equipment, technical consulting, design, and construction supervision costs.

The reciprocal funding for the project was some VND1.1 trillion ($46.4 million), which will be used to pay value added tax as well as project management and site clearance costs.

However, site clearance expenses have climbed by some VND353 billion ($14.9 million), construction costs, by VND788 billion ($33.3 million), project management and consulting costs, by VND80 billion ($3.4 million), and contingency costs, by VND218 billion ($9.2 million), according to the Ministry of Transport.

The ministry sought the government leader’s approval for an increase in the ODA loan to around VND4.5 trillion ($188 million) from nearly VND3.7 trillion ($158.8 million) and the reciprocal capital to over VND1.7 trillion ($71.8 million) from nearly VND1.1 trillion ($46.4 million).

The 26.56-kilometer My An-Cao Lanh Expressway project will start at N2 Road in My An Town, Thap Muoi District, Dong Thap Province and end at the An Binh Intersection in Cao Lanh City, Dong Thap.

The expressway, once completed, will allow commuters to travel at a maximum speed of 100 kilometers per hour.

It will feature six lanes measuring 32.25 meters wide.

In the first phase, the road will feature four lanes with a width of 17 meters and have a designed speed of 80 kilometers per hour.

Construction of the project is expected to last five years since the ODA loan agreement with the EDCF took effect.

On January 19 this year, the Ministry of Transport proposed the prime minister green-light adjustments to the investment plan of the first phase My An-Cao Lanh Expressway project. The cabinet leader later assigned the Ministry of Planning and Investment to verify dossiers on the adjustments.

The Ministry of Transport has recently consulted with other ministries and localities over the proposal and asked the Export-Import Bank of Korea to clarify its ability to offer the $188-million ODA loan for the expressway project.

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