Cargo Info Vietnam

Gov’t insists on express railway project

Wednesday, 09 June 2010 09:57

The Government in a report just sent to National Assembly deputies asserts that investment capital for the North-South express railway project is till within reach and the project will not hurt capital balance for other projects.

Vị trí đặt quảng cáoThe Government insists on adequate funding for the project, explaining that the phased development of the North-South railway will not cut into funding for other important communications projects. The explanation is given to prepare NA deputies for the plenary discussion on this mammoth project due on Tuesday.

The transport sector is expected to need US$89 billion in invested capital from now to 2020 that accounts for 7.2% of gross domestic product (GDP). Of which, the railway project will account for around 1.7% of GDP, which is expected to grow by 5.5% a year.

If the economy is to expand by 6.5% a year, the transport sector will require funds equal to 6.8% of GDP and the railway project’s share will be only 1.6% of GDP, the Government explains.

Under the Government’s plan, the project needs US$2.6 billion each year between 2012 and 2020, including US$344 million from the State budget, over US$1.9 billion overseas development assistance (ODA) funds and other credits. For the 2030-2035 phase, the Government will invest US$4.3 billion yearly, including US$2.4 billion from ODA funds and credits.

Saigontimes

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