Lang Son seeks funds for Chi Lang-Huu Nghi expressway

(LSO) – The first section of the Bac Giang-Lang Son expressway, stretching 64km from Bac Giang city of Bac Giang province to Lang Son province’s Chi Lang district, has been basically completed. However, the second section of the expressway, running from Chi Lang to Huu Nghi with a length of 43km has yet to be implemented due to capital-related difficulties.

In May 2018, Prime Minister Nguyen Xuan Phuc issued Official Dispatch No. 858/TTg-CN on the implementation of the Bac Giang-Lang Son expressway and the Huu Nghi-Chi Lang section under the form of BOT (build-operate-transfer) contract.

Accordingly, the Huu Nghi-Chi Lang section has total investment capital of 8.3 trillion VND (around 358.5 million USD).

The first 64km session of the Bac Giang-Lang Son expressway from Bac Giang city to Chi Lang district has been basically completed.

Since 2018, Deo Ca Group, the investor of both components, has coordinated with local departments and agencies to complete necessary procedures as well as the land clearance work.

However, banks are hesitant to provide loans for the investor, leading to the project’s slow progress and even suspension since late 2018.

The root cause of the problem is the reduction in the number of toll stations along the route, from two to one, thus affecting the initial financial plan of the project.

To address the issue, the provincial People’s Committee has registered to work with the Government and the Prime Minister to ask for their instructions. Besides, the provincial authorities have also considered allocating its budget to the project.

The provincial People’s Committee has also urged Lang Son city and districts to review all stages of the project.

Meanwhile, the Deo Ca Group has held working sessions with banks and mobilised capital from its stakeholders for the project.

Chairman of the Board of Directors of the Deo Ca Group Ho Minh Hoang said the stakeholders have committed more than 1.75 trillion VND (75.5 million USD) for the project. The group has injected over 400 billion VND into land clearance and dossier completion.

The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has committed about 2 trillion VND (86.4 million USD) out of a total of nearly 3.4 trillion VND (146.8 million USD) to be sourced from commercial banks.

At a working session on September 30, Lang Son’s leaders suggested the PM instruct the Ministries of Planning and Investment, and Finance as well as relevant agencies to propose the Government allocate 3.16 trillion VND (136.5 million USD) from the State budget to the project.

Localities and the investor are stepping up efforts to ensure that the construction of the second component is implemented in 2020 and completed one year later.