Korea, Australia, ADB provide US$165.5 million for Vietnam, Cambodia road improvements

Korea, Australia, ADB provide US$165.5mil for VN, Cambodia road improvements

VietNamNet Bridge - Republic of Korea, Australia and Asian Development Bank (ADB) are providing $165.5 million in loans and grants to Vietnam and Cambodia to rehabilitate transport infrastructure to promote cross-border trade and support economic development in the Greater Mekong Sub-region.
ADB will provide a US$75 million loan to Vietnam and a US$7 million loan to Cambodia to help fund the Greater Mekong Sub-region Southern Coastal Corridor Project. South Korea will extend a US$50 million loan to Vietnam through the Economic Development Cooperation Fund, which provides official development assistance to developing countries. Australia will extend grants of US$25.5 million to Vietnam and US$8 million to Cambodia.
Vietnam will contribute US$58.2 million and Cambodia will provide US$3.7 million to complete funding for the project.
“Cooperation in the transport sector has been given a high priority in the Greater Mekong Sub-region because the poor state of transport infrastructure is a major constraint to economic growth, trade and other forms of cooperation,” Paul Vallely, senior transport specialist of ADB’s Southeast Asia Department, said in an announcement the bank released on December 5.
The Greater Mekong Sub-region is composed of countries sharing the Mekong River – Cambodia, People’s Republic of China, Lao People’s Democratic Republic, Myanmar, Thailand and Vietnam.
The Southern Coastal Corridor runs for 924 kilometers from Bangkok through Cambodia and ends at Nam Can in the south of Vietnam. The project specifically involves the rehabilitation of 15 kilometers of national road in Cambodia that links to the border of Vietnam and the improvement of 96.1 kilometers of national highway in Vietnam, which includes the construction of two bridges across the Cai Be and Cai Lon rivers. New cross-border facilities will also be developed.
The Cambodian section of the project is expected to be completed in June 2012 and the Vietnam section in December 2014.
The project should result in reduced travel times and lower vehicle operating costs along the corridor, which would encourage economic activities, provide employment opportunities and improve access to social services.
(Source: SGGP)