News and Events > Public Media

Helping to eliminate the country's North - South bottleneck in the distribution system

Loan for Tunnel Construction at the Hai Van Pass in central Viet Nam

Date: 1997

The OECF ( The Overseas Economic Cooperation Fund of Japan ; President, Chairman of the Board, Akira Nishigaki ) is providing the Government of the Socialist Republic of Viet Nam with loans amounting to 81,000 million yen under 9 Loan Agreements for FY 96.

The Loan Agreements were signed today at the OECF's Head Office in Tokyo by Mr. Akira Nishigaki, President, Chairman of the Board, and H.E. Mr. Nguyen Quoc Dzung, Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Viet Nam.

The cumulative total of OECF loans to Viet Nam now stands at 316,840 million yen (35 commitments).

The FY 1996 loans follow a Commodity Loan amounting to 45,500 million yen provided in November 1992, loans amounting to 52,304 million yen provided in January 1994, loans amounting to 58, 000 million yen provided in April 1995, and loans amounting to 70,000 million yen provided in March 1996.

The amounts and conditions of the 9 FY 1996 loans ( with a description of each project ) follow.

1. Outline of the Loans

(1) Loan amount

The loan amount committed for FY 1996 is 16% greater than the FY 1995 loan amount of 70,000 million yen, also exceeding the amounts of the loans to Viet Nam pledged by either the World Bank or the Asian Development Bank in December 1996, during the fourth Meeting of the Consultative Group ( CG ) in Viet Nam. The OECF continues to be the largest donor of ODA to Viet Nam.

(2) Project Sectors

The project loans committed today comprise 4 power plant projects, 2 road projects, 1 communications project, 1 rural development project, and 1 urban development project. The purpose of all 9 projects is to assist the construction of basic infrastructure that Viet Nam considers to be urgently needed. Of the 9 loans, 5 are follow-on loans.

(3) Project details

Each project is considered by Viet Nam to be a top-priority project that needs to be implemented urgently. The 9 projects ( with information showing the importance of each project in its sector ) are :

Project Name	Description
1. Phu My Thermal Power Project (III)	Construction of the largest thermal power plant in the southern part of Viet Nam. (Combined- cycle type)
2. Pha Lai Thermal Power Project (III)	Expansion of the largest thermal power plant in the northern part of Viet Nam. (Coal-fired thermal power plant) Fuel gas desulfurization system is also now added to the scope of the project.
3. Ham Thuan - Da Mi Hydropower Project (III)	Construction of the largest hydroelectric power plant in southern Viet Nam, a dam and a reservoir.
4. Da Nhim Power System Rehabilitation Project	Rehabilitation of the Da Nhim Power Plant, which was built using Japanese war reparations
5. Hai Van Tunnel Construction Project (I)	Construction of a tunnel at the Hai Van Pass in central Viet Nam, on Highway No. 1, the most important artery for north-south traffic flow in Viet Nam.
6. Coastal Communication System Project	Upgrading and development of the coastal communication system in the northern part of Viet Nam, including compliance with the requirements of the GMDSS (Global Maritime Distress and Safety System), a system based on a 1988 SOLAS (Safety of Life at Sea) Convention decision.
7.Second National Highway No. 1 Bridge Rehabilitation Project (II-2)	Rehabilitation and replacement of priority bridges on National Highway No.1 between Bac Giang and Lang Son, following the first phase of the project for the section between Hanoi and Bac Giang, financed last year.
8.Rural Infrastructure and Living Standard Improvement Project (II)	Constructing and improving basic infrastructure, such as roads and electricity supply in rural areas.
9.Hanoi Urban Infrastructure Development Project ( Phase 1 : Public Sector Support to Thang Long North Area )	Development of urban infrastructure, such as the road system, water supply, drainage, wastewater treatment and power supply, for the Thang Long North Area in Hanoi. The area is to be newly developed, and will comprise an industrial zone, a residential area, a commercial area and a distribution center.

 

2. Commitment amounts for Yen loans to Viet Nam (by sector) between FY 1992-1997 (Unit : million Yen)

Sector/Year	1992	1993	1994	1995	1996
Power	-	(3)29,135	(3)38,411	(2)24,962	(4)55,831
Transportation	-	(4)20,669	(3)8,383	(5)38,038	(2)7,739
Water Supply and Drainage	-	-	(1)6,406	-	-
Rural Development	-	-	-	(1)7,000	(1)4,000
Commodity Loan	(1)45,500	(1)2,500	(1)4,800	-	-
Communication	-	-	-	-	(1)1,997
Urban Development	-	-	-	-	(1)11,433
Total	(1)45,500	(8)52,304	(8)58,000	(8)70,000	(9)81,000

( ) number of projects
OECF committed 1 commodity loan before 1992.

3. Loan amount and Conditions

Project Name	Amount (Mil. Yen)	Interest Rate (%)	Repayment Period/ Grace Period (Years)	Tying Status
1. Phu My Thermal Power Proj(III)	11,638	2.3	30(10)	General- Untied
2. Pha Lai Thermal Power Project (III)	32,529	2.3 (Environmental protection portion:2.1)	30(10)	General- Untied
3.Ham Thuan - Da Mi Hydropower Project (III)	4,664	2.3	30(10)	General- Untied
4.Da Nhim Power System Rehabilitation Project	7,000	2.3	30(10)	General- Untied
5. Hai Van Tunnel Construction Project (I)	5,500	2.3	30(10)	General- Untied
6. Coastal Communication System Project	1,997	2.3	30(10)	General- Untied
7.Second National Highway No. 1 Bridge Rehabilitation Project (II)	2,239	2.3	30(10)	General- United
8.Rural Infrastructure and Living Standard Improvement Project (II)	4,000	2.3	30(10)	General- Untied
9.Hanoi Urban Infrastructure Development Project (Phase 1 : Public Sector Support to Thang Long North Area)	11,433	2.3 (Environmental protection portion:2.1)	30(10)	General- Untied
Total	81,000

(Source: Japan Bank for International Cooperation Online)

Top

---

This homepage is presented by the Consultant Team

Any further question should be forwarded to Webmaster or Consultant Team