The Ministry of Transport has proposed Prime Minister Nguyen Xuan Phuc approve the allocation of an additional VND1.18 trillion (US$51.7 million) from the State budget to Deo Ca Tunnel Project.

The southern gate of Deo Ca Tunnel

The project aims to build road tunnels through Deo Ca (including the tunnels of Deo Ca, Co Ma, Cu Mong, and Hai Van). The Deo Ca Tunnel Project runs through the Ca Pass on National Highway 1A linking the two central provinces of Phu Yen and Khanh Hoa and construction began in 2012.

The Deo Ca Tunnel, which was put into operation in August last year, is the second-longest mountain road tunnel in the country, after the Hai Van Tunnel, which is 6.28 kilometres long and runs between Thua Thien-Hue province and Da Nang city.

Under this further budget allocation, the Hai Van tunnel expansion project would be expected to be put into operation soon.

The proposal signed by Deputy Minister of Transport Le Dinh Tho stated that Deo Ca Tunnel Project is a national key project, playing an important role in socio-economic development, ensure national defence and security in the central provinces and the Central Highlands.

Currently, Deo Ca, Co Ma and Cu Mong tunnels are in use, contributing to solving congestion, creating favourable conditions for connectivity and promoting socio-economic development for central coastal provinces, according to the ministry’s proposal.

The Hai Van tunnel expansion work was the final implementation item of the Deo Ca project, that was tested and approved by the State Council for the Acceptance of Construction Works.

Currently, the Ministry of Transport is working with the investors to complete procedures to put the Hai Van tunnel expansion project into operation soon.

“However, the Deo Ca project's finance is facing some problems including the allocation of VND1.18 trillion State budget capital, and the La Son-Tuy Loan station's toll fees have not been completely resolved,” Tho said.

“It affects the funding for operation and maintenance of tunnel works and bank repayment plans,” he said. The ministry has developed a plan to allocate mid-term investment money and the State budget capital in 2020 for the project.

The ministry consulted with the National Assembly Finance and Budget Committee, Ministry of Planning and Investment, Ministry of Finance and Vietinbank, proposing the Prime Minister for approving the allocation of VND50 billion, and the rest will be allocated in 2021 and the period of 2021-2025.