Binh Duong borrow over VND1,480 trillion of ODA for bus rapid transit

Update: 11-05-2018 | 08:29:37

Deputy Prime Minister and Minister of Foreign Affairs Pham Binh Minh signed a decision to allow Binh Duong province to invest and use capital of official development assistance (ODA) in rapid bus routes in the province. Accordingly, Binh Duong will invest in bus rapid transit (BRT) linking Binh Duong New City with Suoi Tien (Ho Chi Minh City) with a length of 30.8 km, including 4 phases and 4 overpasses within urban routes of Binh Duong New City.

The approved investment portfolio is USD 80 million, equivalent to VND 1,822 billion. Among these, Binh Duong will borrow about USD 65.37 million of ODA loan, equivalent to about VND 1.484 billion. This is a loan from Japan International Cooperation Agency (JICA); Binh Duong Province will borrow 100% from the Government and is responsible for repayment of principal and interest. The remaining of more than VND 388 billion is the counterpart fund of Binh Duong province. According to the approved plan, the project will be executed from 2018 to 2020.

Previously, Binh Duong province and Ministry of Transport and Communications proposed to borrow more than 1,600 billion of JICA from the Government to construct BRT system like in Hanoi. According to provincial People's Committee, the BRT development project is necessary, as it facilitates smooth traffic connection and shortens the distance between urban centers of Binh Duong province with Ho Chi Minh City and Dong Nai. Ministry of Planning and Investment also asked Binh Duong province to study strengths and weaknesses of BRT model in Ho Chi Minh City and Hanoi to re-evaluate the need for investment and calculate investment efficiency in the context of investment capital from a foreign source.

Reported by P.V – Translated by Ngoc Huynh

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Binh Duong borrow over VND1,480 trillion of ODA for bus rapid transit

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