Borrowed 78 million USD from Korean ODA to renovate and build Khe Net tunnel on the North-South railway. One of the bottlenecks on the North-South railway [...]
One of the bottlenecks on the North-South railway - Khe Net Pass (Quang Binh) will be renovated to shorten time and improve train running capacity.
Minister of Planning and Investment Nguyen Chi Dung has just signed a document requesting the Prime Minister to consider and approve the list of Project Railway improvement in Khe Net pass area, Hanoi - City railway line. Ho Chi Minh used Korean ODA loans and allowed the use of Korean non-refundable aid to review and update the project's feasibility study.
Mr. Dung also requested the Prime Minister to assign this Ministry, on behalf of the Government, to send a note requesting the Korean side to provide ODA loans for the Project and provide non-refundable aid to carry out technical support to review and update the Project's feasibility study.
Train slowly passes through Khe Net Pass, Quang Binh – Photo: Internet
This project, invested by the Ministry of Transport, has the goal of ensuring safety, shortening time and improving capacity and quality of North-South railway transport. This project will renovate the route and build 2 tunnels to shorten the distance by 2km, thereby improving the speed and safety of train operations in the Dong Chuoi - Kim Lu section and the Vinh - Dong Hoi section.
The total project investment is about 87.5 million USD (equivalent to 1,953 billion VND), of which 78 million USD is loaned by the Korean Government through EDCF; The Vietnamese Government's counterpart capital is 9.5 million USD.
According to the proposal of the Ministry of Transport, the implementation time of this key railway project is 5 years, counted from the completion of procedures to implement the project.
It is known that in 2012, the Project was approved by the Prime Minister to use Chinese preferential loans. However, because the Chinese side could not provide credit, the Prime Minister agreed to replace it with another sponsor. Within the framework of Vietnam - Korea financial cooperation, through a number of exchanges and working sessions between the Ministry of Transport and KEXIM's project research and preparation delegations, the project has received funding attention from the Korean side. The project has the effect of reducing costs, train running time, improving railway safety, saving maintenance costs, in accordance with current strategies, planning, plans and regulations.
"Therefore, the Ministry of Planning and Investment believes that borrowing Korean ODA capital to implement the Project is necessary and feasible, in accordance with domestic laws, regulations and previous decisions of the Prime Minister", Minister Dung assessed.
Procedures
