Goldman Sachs is on route for tunnel project

August 14, 2012 | 11:25

(0) user say

Goldman Sachs will arrange a $250 million syndicated loan for the Deo Ca tunnel project’s build-transfer package.

Deo Ca Investment Company’s (DCIC) management board chairman Nghiem Sy Minh said: “This month, Goldman Sachs will appoint a think-tank to do field research and set up an environmental report to make preparations for a syndicated loan of $250 million for the access road, bridge and Co Ma tunnel under the build-transfer (BT) form.”

A nine kilometre access road, bridge and 500 metre Co Ma tunnel in Vietnam’s largest road tunnel project will all come under the BT umbrella. “This is a compulsory procedure before Goldman Sachs signs a contract with DCIC to arrange this syndicated loan,” said Minh.

The $750 million Deo Ca road tunnel project will see a tunnel crossing Deo Ca on National Highway 1 which passes south-central Phu Yen and Khanh Hoa province covering 13.4km. The construction of the project includes 3.9km Deo Ca tunnel under the build-operate-transfer (BOT) form and a 9km access road, bridge and 500 metres Co Ma tunnel under the BT form.

The Ministry of Transport early this year rubber-stamped the project with the Deo Ca tunnel costing VND10.55 trillion ($507 million) and building an access road, bridge and Co Ma tunnel under the BT needs VND4.51 trillion ($216.7 million) and state budget reciprocal capital of VND539 billion ($193 million) for site clearance. Construction of Deo Ca project is expected to start in September, 2012 and will take four years.