Vietnam to borrow more money from China for Hanoi railway project

04-vietnamVietnam will borrow USD 250.62 million more from China to partly offset the additional capital needed for the completion of the Cat Linh-Ha Dong urban railway project in Hanoi by next year. This move was recently approved by prime minister Nguyen Tan Dung, who also agreed to adjust the timing of the project so that it will be commercially operational in 2016.
Nguyen Tan Dung has required the Ministry of Transport to urgently adjust the capital needed for the project and coordinate with relevant ministries to evaluate the adjustment in accordance with the law.
The Cat Linh-Ha Dong urban railway project in Hanoi is built with China’s official development assistance loans under the Framework Agreement signed on 30 May 2008 between the Vietnamese and Chinese governments. The Vietnam Railway Authority, under the transport ministry, is the project developer. China Railway Sixth Group, a subsidiary of construction conglomerate China Railway Group, is the engineering, procurement, and construction contractor.

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