Vietnam highway construction project facing halt

A Vietnam highway construction project is facing a halt to works.
Finance & Funding / March 5, 2020 1 minute Read
By MJ Woof
Work is being halted on an important expressway project in Vietnam – image © courtesy of Marko Bukorovic, Dreamstime.com

Work may be halted on the Ben Luc-Long Thanh expressway project in Vietnam. The problem is that the construction costs have increased over the original budget. Building the expressway is now expected to cost US$70 million more than had been originally planned.

The Vietnam Expressway Corporation (VEC) has proposed halting the work due to the extra costs, which relate to two portions of the project.

The original cost for the Ben Luc-Long Thanh expressway project was $1.34 billion and the work is currently 76% complete. However, building the Phuoc Khanh bridge is costing $38 million while the construction of the Binh Khanh bridge is costing $32 million.

Much of the funding for the expressway project is being provided by the Asian Development Bank and the Japan International Cooperation Agency. However, a new financing approach will be required for the project to be completed.