A corner of Hon La Industrial Park in Quang Binh Province. A bonded warehouse and an oil pipeline will be built from this park to Laos' Khammouane Province. — Photo cafeland.vn

HA NOI (Biz Hub) — The construction of a bonded warehouse and an oil pipeline from the central Quang Binh Province's Hon La Island to Khammouane Province in Laos will begin in 2015 Q4.

The project will be fully funded by the Laos government and its businesses, reported baodautu.vn.

According to the Association of Vietnam Investors into Laos (AVIL), Petro Laos on October 22 signed a contract on consulting and preparing a feasibility report on the project with the Energy and Commodities Company from Slovakia. It also inked a contract on the principles of legal consulting procedures with AVIL.

As planned, the bonded warehouse will be built on 37.45ha in the Hon La Industrial Park in Quang Binh Province, with an estimated investment capital of between US$300 million and $500 million.

The project's main structures will also include a wharf for vessels with capacities of 50,000 tonnes and above each, a 290km-long oil pipeline and a system of four pumping stations, as well as a warehouse system with a total capacity of about 100,000 to 200,000cu.m.

The project's contract on consulting and preparing a feasibility report will be carried out in nine months. The project is expected to be constructed in 30 months and begin operations by early 2018. — VNS