Vietcombank and Indovina Bank have signed an agreement with Van Phu Bac Ai JSC to provide VND1.46 trillion (US$64.32 million) to finance construction of a section of HCM City’s Ring Road No 2.

The section, from Pham Van Dong Street to Go Dua intersection on National Highway 1 in Thu Duc District, will cost VND2.77 trillion ($122 million) and be built under a BT (build-transfer) contract.

Ring Road No 2 will serve as a fulcrum around which more urban infrastructure will be built.

The Thu Thiem branch of Vietcombank – or the Joint Stock Commercial Bank for Foreign Trade of Viet Nam, as it is formally known – will provide VND1.16 trillion ($51.1 million) and Indovina Bank, VND300 billion ($13.2 million).

The five-year loan will be used to acquire land.

The road, whose construction began last December, runs from Go Dua intersection through Binh Phuoc intersection, An Suong intersection, An Lac Road, Ha Noi Highway, HCM City-Long Thanh-Dau Giay Expressway, Phu My Bridge, and Nguyen Van Linh Road.

Vietcombank’s Thu Thiem branch opened just over a year ago, and this is its biggest infrastructure project so far. — VNS