Japan banks finance highway project in Vietnam

February 22, 2012 | 19:39

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A credit agreement for the Hanoi-Hai Phong Highway project was signed on February 22 in Tokyo between the Vietnam Development Bank (VDB) and Sumitomo Mitsui Bank Corporation (SMBC) and Citibank of Japan.

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Under the agreement, SMBC and Citibank will provide VDB with loans of $270 million to carry out phases No.3 and No.8 of the project within 15 years, with a grace period of 4.5 years under the credit insurance of Nippon Export and Investment Insurance (NEXI) of Japan .

Representatives of the sides agreed that the project plays an important role in promoting economic development in the Red River Delta. It is also a significant project for more than 200 Japanese enterprises which have business and production units along the route.

Speaking at the ceremony, Vietnamese Ambassador to Japan Doan Xuan Hung highlighted the fine development of the Vietnam-Japan relationship. He said Vietnam is an attractive destination for Japanese investors, expressing his hope that Japanese businesses will further strengthen investment in other projects in Vietnam .

According to VDB, the Hanoi-Hai Phong highway project is the first intercity traffic route in Vietnam that will meet international standards.

With a total length of 105.5 km, the project will begin in Hanoi ’s Gia Lam district and end in Dinh Vu dam in Hai Phong city.

The project’s final phase is scheduled to begin this year.

VIR/VNA

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