Highway needs capital to move

June 11, 2012 | 14:46

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The La Son- Tuy Loan highway project needs a $96 million capital injection.

The project covers a new 81.7 kilometres stretch of the highway from La Son town in central Thua Thien-Hue province to Danang city's Tuy Loan township.

Last week, Ho Chi Minh Road Project director Pham Hong Son said: "Building prices have been updated, but increasing its investment capital makes finding an investor for the project more difficult. We hope to find an investor after June," said Son.

Previously, the Ministry of Transport (MoT) planned to sink close to $1 billion into the project. The main 77km stretch will connect La Son road and Tuy Loan, while a further 4.68km will connect the roadway to National Highway 1.

The La Son–Tuy Loan road is part of the Ho Chi Minh City road project and will be constructed using the build–transfer model.

The project will be kicked-off in 2012's third quarter and is expected to be operational in 2015. The cost for compensation and clearance is around $19 million.

So far, a Vietnam and Korea joint venture including Korea's Shinhan E& C Group, Truong Son Building, Transport Company No8, Van Tuong Company, Truong Thinh Joint Stock Company and Son Hai is the only investor submitting an application to invest in this project.