Real estate developer Vingroup's spends VND 1 trillion ($45.85 million) on the fly-over of Ring Road No 2.– Photo zing.vn

Ha Noi (Biz Hub) – The People's Committee of Ha Noi has approved real estate developer Vingroup's payment of VND 1 trillion (US$45.85 million) for the construction of Ring Road No 2.

The money is to be spent for construction of the section in the Vinh Tuy – Mai Dong area in the south of the city, according to the financial website cafef.vn.

Ring Road No 2 was planned by the city's Transport Department and includes a 5 km flyer over, connecting Vinh Tuy-Mo Market and Vong Intersection, and is expected to cost 5 trillion ($227 million).

The construction work was scheduled in 2012 to ease traffic congestion in the city, however, limited financing for land clearance had prevented the road construction to begin.

Thus, according to local media, Vingroup's disbursement of VND 1 trillion will be used for land clearance, adding that since Vingroup was chosen as the investor, with the flyer over being part of the Build and Transfer investment, the advance payment would be deducted from its financial obligations for the project. - VNS