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Expressway Project to Boost Development in Ho Chi Minh City and Surrounding Provinces

HA NOI, VIET NAM (20 March 2009) - The Asian Development Bank (ADB) and the Government of Viet Nam today signed an agreement for a US$410.2 million loan to build the 51-kilometer Ho Chi Minh City-Long Thanh-Dau Giay expressway. The entire project will cost $932 million, with other funding coming from the Japan International Cooperation Agency (JICA) and the Viet Nam Expressway Corporation.

The signatories included State Bank of Viet Nam Governor, Nguyen Van Giau, and ADB Country Director for Viet Nam, Ayumi Konishi.

The four-lane toll expressway starts at the junction of the Second Ring Road in District 9 in the center of Ho Chi Minh City and ends at the junction with National Highway 1 at Dau Giay in Dong Nai Province. The project includes the construction of a 1,700-meter long bridge over the Dong Nai River at Long Thanh. The project will be completed in 2014.

Ho Chi Minh City is the country's major economic hub, serving key industries. However roads around the city are now heavily congested, travel speeds are slowing and, as a result, transport costs are rising.

"The new expressway will have a significant impact on social and economic development in Ho Chi Minh City, the surrounding provinces, and the Greater Mekong Subregion. Not only will it contribute to more streamlined traffic flows but it will substantially lower transport costs and transportation time, as well as reducing accidents and pollution caused by traffic congestion," said Mr. Konishi.

"Joining efforts of the Government to stimulate the economy during the global economic downturn, ADB will work closely with the concerned ministries and agencies to implement the project at fast as possible since it provides jobs for the people and it can also stimulate consumption by those who benefit from the project," Mr. Konishi added.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members - 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

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