The Dau Giay - Phan Thiet Highway will be 98.7km in length with four lanes built under international standards. — Photo baodongnai

HCM CITY (Biz Hub) — Prime Minister Nguyen Tan Dung approved a plan to split the Dau Giay - Phan Thiet Highway project in the south into two road sections.

The Dau Giay - Phan Thiet Highway will be 98.7km in length with four lanes built under international standards.

Under the plan, the highway would connect the southern province of Dong Nai to the sea tourism city of Phan Thiet in the southern province of Binh Thuan.

The first section will cover a length of 36km, extending from Dau Giay in Thong Nhat District to Xuan Loc District in Dong Nai Province. Investment comes from Government loans from the World Bank's International Development Association (IDA).

The second section will cover a length of 62.7km from Xuan Loc District to Phan Thiet City. The transport ministry, in coordination with the Ministry of Planning and Investment and relevant agencies, will be responsible for reaching agreement with the World Bank on plans for the investment mode and arrangement for loans from IDA for the first section of the project in 2016.

To begin construction of the first section on time, the Prime Minister has also asked the Ministry of Planning and Investment to work with the transport ministry and agencies on formalities associated with IDA loans and to arrange counter-capital from the State budget.

This is the first pilot transport infrastructure project in Viet Nam under the Private - Public - Partnership (PPP) investment mode, with capital from the private sector and State. The State's financial participation ensures that the project would be attractive to private investors.

After construction is completed, the Transport Ministry will choose an investor to transfer rights for management and operation of the highway.

The highway is expected to accommodate high-density transportation. It will run through many industrial parks and seaports, as well as to proposed international airports.

The Dau Giay-Phan Thiet Highway will be transferred after 30 years. —VNS