Asia Business Channel

Haiphong seeks $500 million USD in FDI for New Infrastructure Projects

The Haiphong Investment, Trade and Tourism Promotion Centre announced that it is seeking $500 million USD for four key transportation projects in the city. This is on top of $2 billion USD in FDI loans for port and railway projects that the city announced 1-month earlier. The four new projects include:

(1) Constructing a road that will go from Sen-Cau Rao 2 to Nguyen Van Linh Street and then a tunnel that connects Nguyen Binh Khiem Street to Vu Yen Island, the Hai Thanh Bridge, and Ben Lam Bridge.

Of these, the Ho Sen-Cau Rao 2-Nguyen Van Linh transportation project (at Le Chan and Hai An district) based on an area of 6 hectares calls for $17 million of investment capital.

This project is seeking $17 million USD in investment funds and the investment strategy has been approved by the Prime Minister and is considered by the government to be an important infrastructure project for the new urban area of Ho Sen-Cau Rao 2.

(2) Constructing a 350 meter long road, four lanes wide road tunnel from Nguyen Binh Khiem Street to Vu Yen Island (at Hai An and Thuy Nguyen district). The project will cover a total area of 8.1 hectares and the government is seeing $180 million USD in investment capital.

(3) The Hai Thanh Bridge project is a 40ha project that is seeking $135 million USD in investment capital. The bridge will be 5km long and 12 lanes wide, and will connect provincial Road 353 to Tan Vu intersection (at Duong Kinh and Hai An districts).

(4) The Ben Lam Bridge project is a 6-hectare project that is seeking $160 million USD in investment capital. The bridge length will be 1.3 kilometers long and 10 lanes wide. It will connect the Hong Bang and Thuy Nguyen districts.

One month earlier, two additional projects had been announced that are seeking $2 billion USD in investment capital and are major infrastructure projects. They are railroad project that will to Haiphong International Port and an industrial park for Japanese companies.

The railway project is a 57-kilometer long line and is estimated at $1.6 billion USD with a portion of the cost for the railway to be financed by Official Development Assistance (ODA) loans from the Japanese government. The project will be under development until 2030 and calls for the construction of 16.56 kilometers of railway lines, 26.9 kilometers of bridges, and the construction seven new railway stations.

The project is being created and run as a public-private-partnership (PPP) with a build-operate-transfer (BOT) financial strategy. As the project is developed, it is estimated that 30 million tons of cargo per year will be transported by 2020, which will increase to 60 million tons in 2025 and 95 million tons per year by 2030.

Another project that is seeking $400 million USD in foreign investment is the professional industrial park for Japanese companies in the northern area of Haiphong. The Haiphong People’s Committee announced the general master plan of Dinh Vu-Cat Hai Economic Zone (EZ) that will cover an area of 22,540 hectares. The plan calls for this area to become a multi-sector economic zone and the Japan industrial park will cover an area of 300 ~ 400 hectares in this zone.
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