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Jun 16, 2022 / 20:31

Vietnam parliament agrees US$3.7 billion for ring road connecting Hanoi and nearby areas

The project would help create a new development space and address existing issues of Hanoi toward the formation of modern and sustainable urban areas.

The National Assembly today ratified [June 16] a solution on the Ring-road No.4 project going mostly through Hanoi with a total investment capital of VND85.8 trillion (US$3.7 billion).

 Overview of the voting session. Source: quochoi.vn

According to the resolution, the construction of the Ring-road No.4 would bolster provincial connectivity between Hanoi and northern provinces in the capital area, including Hung Yen and Bac Ninh.

“The project would help create a new development space and address existing issues of Hanoi toward the formation of modern and sustainable urban areas,” it added.

The Government previously proposed the construction of the Ring road No.4 with a total length of 112.8 kilometers, running through Hanoi (58.2 kilometers), Hung Yen (19.3 kilometers), and Bac Ninh (25.6 kilometers).

The project, covering a combined area of 1,341hectares with a length of 136km, is set to be completed by 2027.

The Government expects the project to be divided into seven sub-components, for which both the construction and site clearance phases are conducted separately by the provincial/city authorities with finance from the combination of public investment and public-private partnership (PPP).

The total investment cost of the project is VND85.8 trillion ($3.7 billion), with  VND41.8 trillion ($1.8 billion) for the 2021-2025 period sourced from the state budget. Of the total, Hanoi would contribute VND22.47 trillion ($967.2 million) from its local budget, Hung Yen VND1 trillion ($43 million), and Bac Ninh VND2 trillion ($86 million).

In the subsequent five years, the project funding would continue to be allocated VND14.5 trillion ($624.2 million), with Hanoi contributing VND4 trillion ($172 million), Hung Yen VND505 billion ($21.7 million), and Bac Ninh VND1.16 trillion ($50 million).

The private sector, meanwhile, is expected to fund VND29.4 trillion ($1.26 billion).