The Ministry of Construction (MoC) has submitted a proposal to the Ministry of Finance to adjust the total investment Capital for the component project 1A of the Tan Van - Nhon Trach section construction project (phase 1), part of Ho Chi Minh City’s Ring Road 3.

The proposed adjustment seeks to raise the investment capital from VND6.955 trillion ($267 million) to approximately VND9.268 trillion ($365.4 million), sourcing from Official Development Assistance (ODA) funds.

According to the MoC, the project employs ODA loans from the South Korean government. The initially adjusted investment capital, as approved by the Prime Minister in January 2020 and then revised in April 2022,  set at approximately VND6.955 trillion.

The project spans a total of 8.75km with a design speed of 80 km/h, featuring four motorized lanes and two mixed traffic lanes.

Within the initial investment plan, the ODA loan was set at over $190.77 million, complemented by a counterpart fund of over VND2.779 trillion ($106.8 million).

The implementation period is scheduled for five years, from September 2020 to September 2025, following the effective date of the loan agreement.

The MoC emphasized that adjustments to the project’s scope, including additional investments in specific construction items, are essential to ensure that the section operates at expressway standards. These adjustments align the project with other components of Ring Road 3 and have led to an increase in the total ODA loan amount.

As a result, the preliminary adjusted total investment has increased by approximately VND2.312 trillion (over $88.8 million), requiring the project’s ODA loan capital to increase from $190 million to $262 million.