An artist's conception of the Deo Ca tunnel
Vietnam JSC Bank for Industry and Trade will lend VND4 trillion (US$192 million) to the Deo Ca Investment JSC for building a tunnel through Dai Lanh Mountain to connect the central provinces of Phu Yen and Khanh Hoa.
The Deo Ca tunnel would also be funded by France's Crédit Agricole Corporate and Investment Bank and Société Générale Bank and US bank Goldman Sachs, news website thoibaokinhtesaigon.vn reported Thursday.
The 4.4-kilometer tunnel, for which ground was broken on November 18 last year, will go through the Ca Pass and cost VND15.6 trillion ($748.9 million).
The project, scheduled for completion in 2016, is divided into two stages.
The first involves construction of the 3.9-kilometer Deo Ca tunnel in Dong Hoa District, Phu Yen Province, under the BOT (build-operate-transfer) system.
The second will see construction of the 500-meter Co Ma tunnel in Van Ninh District, Khanh Hoa Province, but this will be a BT (build-transfer) project.
Five bridges and an approach road are also part of this stage.
Vietinbank, as the bank is commonly known, has already lent VND214 billion to Deo Ca Investment JSC for acquiring and clearing land costing around VND539 billion.
The Ministry of Transportation hopes the tunnel will improve National Highway 1A and reduce accidents in a section full of dangerous bends and steep slopes.
Traffic jams caused by blocked roads are also a problem along theslopes where landslides are a common occurrence.