Business
New expressway project faces opposition
  • By Tien Nguyen | dtinews.vn | July 31, 2016 05:37 AM

A proposal from the Vietnamese Ministry of Transport to borrow USD300 million from a Chinese bank to build the Van Don-Mong Cai Expressway is facing strong opposition from local economic experts and the public.

 

Illustrative photo

The 96-km highway project that connects Van Don District and Mong Cai City in the north-eastern province of Quang Ninh will cost approximately US$382 million. The Export-Import Bank of China has offered a soft loan of $304.9 million to finance the project.

Right after being announced, the project has faced rising opposition from local people and experts.

Veteran economist Pham Chi Lan said that she was really concerned, given the bitter lessons with the Chinese-invested Cat Linh-Ha Dong flyover project in Hanoi which saw its capital triple while the quality is still a concern.

 

Economist Pham Chi Lan

"We should try to avoid such risks at this new project," Lan said. "We know well that Chinese loans usually have lots of strings attached, including the employment of Chinese contractors and the use Chinese machinery and technology, which will make it very difficult for us to manage and supervise our projects."

Besides mentioning the tense relations between the two countries over the East Sea, Lan also pointed to out-dated Chinese technologies which have caused lots of problems for the Da River Pipeline project, the Thai Nguyen Iron and Steel Plant-Phase 2 project.

"Many African countries have realised that cheap Chinese capital usually comes with risks to natural resources and the environment," Lan stressed. "But I can't understand why Vietnamese officials haven't drawn the lessons after so many problems with Chinese loans."

Economist Dinh The Hien also said that he disagreed with the use of Chinese contractors into major projects.

"There have never been any Chinese-invested projects which have been completely effective and on time," Hien said. "Of course there are shortcomings from Vietnamese supervisors and managers but it is clear that the problems mainly arise from the contractors.

According to Minister of Planning and Investment, Nguyen Chi Dung, who is designated by the government to take charge of the project, they have asked the Ministry of Finance to renegotiate the loan, focusing specifically on clauses that require the use of Chinese contractors and equipment.

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