Danang seeks loans for second economic corridor

Chien said the city had just received a dispatch from the Ministry of Planning and Investment responding to the city’s proposal to call for ADB funds, and pledging to discuss this issue with the regional lender.

Danang wants to have official development assistance funds to develop the EWEC 2 scheme running through Danang Port, 14B and 14D national highways, Dac Oc border gate in Quang Nam, Boloven Highlands in Laos and Chong Mek-Nakhon-Bangkok in Thailand.

The central coast city had earlier submitted to the prime minister a document seeking approval for attracting ADB funds for the project. The city in the document clarifies that the new corridor has an advantageous location which is very important to the central region, especially Danang City.

At the moment, those routes as part of the EWEC 2 scheme are nearing completion. However, a section stretching about 123 kilometers running from Dac Oc border gate to Sekong has yet to be covered with asphalt. Besides, a 76.6-kilometer-section of National Highway 14D connecting Ben Giang to Dac Oc border gate in Quang Nam is also in need of upgrade.

"Realising the importance of the economic corridor, we had petitioned the government to build the route and to mobilise construction capital from ADB and we already have the nod from the government to do so,” Chien said.

Danang in seminars on the Mekong Sub-region held by ADB repeatedly mentioned the route’s construction and the lender also expressed its interest in the scheme. Therefore, the local government petitioned the prime minister to consider and allow it to work with ADB on capital arrangement so that the project could be deployed as soon as possible, he said.

Chien asked the city’s departments of transport and planning and investment to cooperate with the Ministry of Planning and Investment and involved agencies in pooling capital from ADB to kick off the scheme soon.

According to the city’s Department of Transport, the EWEC 2 project will be carried out from next year to 2016 in Quang Nam Province and Sekong of Laos with total investment of an estimated $320 million funded by ADB’s non-refundable ODA. Site-clearance and compensation costs of the project will be contributed by the local budgets of those localities where the route runs through.