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China Eximbank provides $300 million preferential buyer’s credit for Bac Giang-Lang Son Section of Hanoi-Lang Son Expressway Construction Project
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Vietnam Ministry of Finance |
| Country | Viet Nam |
| Start Date | Oct 30, 2014 |
| End Date | Aug 14, 2032 |
| Duration | 6,498 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 62594 |
Grant Description
China Eximbank provides $300 million preferential buyer’s credit for Bac Giang-Lang Son Section of Hanoi-Lang Son Expressway Construction Project On October 30, 2014, the Prime Minister of Vietnam, Nguyen Tan Dung, made the Ministry of Finance of Vietnam responsible for a $300 million China Eximbank preferential buyer’s credit (PBC) for the Bac Giang-Lang Son Road Section.
This is part of Phase I of the Hanoi-Lang Son Expressway Construction Project.
The proceeds of the loan were to be used by the borrower to partially financed the total cost of the project's first phase ($382.2 million).
The purpose of the project was to construct a 63.8 kilometer long, 25 meter wide, toll road connecting the Hanoi-Bac Giang area within Bac Giang province to the Mai Sao commune within Chi Lang district and Lang Son province.
The road runs parallel to the existing National Highway 1A (Vietnam’s 2,300 km transnational highway) and it is part of the larger 143 km Hanoi-Lang Son Expressway (CT.03), which connects the capital with the border town of Huu Nghi (Huu Nghi International Border Gate) in Lang Son province.
Upon completion, the project was expected to reduce travel time from Hanoi to Lang Son province from 3.5 to 2.5 hours and expand trade between Vietnam and China. The contractor responsible for project implementation is unknown. Construction began on January 5, 2015, was completed on September 29, 2019, and opened to traffic in January 2020.
The expressway was implemented on a Build-Operate-Transfer (BOT) basis and it will collect toll revenue for 17-years from 2020-2037.
The Vietnam Ministry of Finance and Ministry of Planning and Investment were concerned about repayment abilities, public debt levels, and the restrictions related to the use of Chinese contractors and equipment.
According to a 2019 VN Express article, this road section was supposed to be completed by the end of 2018 but 'the Ministry of Transport had to select a new investor for the project after the original one ran out of capital.'
Staff Comments
- The Vietnamese project title is Đường cao tốc Hà Nội Lạng Sơn or dự án cao tốc Hà Nội - Lạng Sơn or Autoroute Hanoï-Lang Son (Đường cao tốc Hà Nội – Lạng Sơn) or Đoạn Bắc Giang – Lạng Sơn or Dự án cải tạo, nâng cấp quốc lộ 1 đoạn Hà Nội - Bắc Giang. The Chinese project title for the Bac Giang-Lang Son section is 北江—谅山段 and for the entire Hanoi-Long San Expressway is 河内—谅山段.
- The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
- Asian Development Bank (ADB) was originally going to provide debt financing on this project but was seemingly replaced by China Eximbank. Instead, ADB provided technical assistance (see 'Official Letter 2167/TTg-KTN of 2014' and ADB documents).
- It is unclear when China Eximbank signed the financing agreement. This issue warrants further investigation.
Sources & References
- Official Dispatch 10017 / VPCP-KTN 2013 Project of renovating and upgrading Highway 1 Hanoi Bac Giang, $300m China Eximbank loan to fund expressway project
- Bac Giang-Lang Son expressway to open 3 months ahead of schedule
- Official Letter 2167/TTg-KTN of 2014 on investing in Hanoi Lang Son expressway in the form of BOT
- Viet Nam: Greater Mekong Subregion Ha Noi-Lang Son and Ben Luc-Long Thanh Expressways Technical Assistance Project
- Regional Investment Framework Pipeline of Potential Projects (2013–2022)
- Việt Nam mượn của Trung Quốc bao nhiêu?
- Cao tốc Vân Đồn - Móng Cái: Vay Trung Quốc, hiệu quả đến đâu?
- DỰ ÁN CAO TỐC HÀ NỘI – LẠNG SƠN ĐOẠN CỬA KHẨU HỮU NGHỊ - CHI LĂNG, Đường cao tốc Hà Nội – Lạng Sơn
- Viet Nam: Greater Mekong Subregion Ha Noi–Lang Son
- Greater Mekong Subregion Ha Long–Mong Cai, and Ben Luc–Long Thanh Expressways Technical Assistance Project
- 越拟就云屯－芒街高速公路项目贷款条件与中方进行谈判
- Bac Giang-Lang Son Expressway opens
- Bac Giang-Lang Son Expressway opens to traffic, free for one month
- Viet Nam: Greater Mekong Subregion Ha Noi – Lang Son Expressway Project
- Expressways of Vietnam
- Vietnam
- China trade ties seeing new momentum
- 研究: “一带一路”倡议在越南的进展、成果和前景
- China Overseas Development Finance Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Vietnam Ministry of Finance
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