The Vietnam Bank for Agriculture and Rural Development (Agribank) and Bao Loc–Lien Khuong Expressway BOT Joint Stock Company signed a credit agreement in Hanoi on 16 September to finance the first phase of the expressway. The project is being developed under a public-private partnership (PPP).

Additional long-term financing for the expressway

Under the agreement, Agribank will provide a loan of up to VND 2.987 trillion to finance project components and works approved by the relevant authorities and specified in the build-operate-transfer (BOT) contract.

Nguyen Ngoc Nghi, Deputy General Director of T&T Group and Chairman of Bao Loc–Lien Khuong Expressway BOT Joint Stock Company, said that from the outset, T&T and its consortium partners had viewed the expressway as more than a transport infrastructure project. It also represented their responsibility and commitment to the development of Lam Dong and the wider Central Highlands.

“We believe today’s partnership between the project company and Agribank will create opportunities for both sides to build on their strengths while unlocking resources for key sectors of the economy. It also demonstrates how private-sector resources and state financial institutions can work together effectively to create new drivers of growth for the country,” Nghi said.

The investor consortium and project company also pledged to work with their partners to meet their equity funding commitments on schedule, use the financing efficiently and focus resources on delivering the project in accordance with the law, quality requirements and agreed timelines, while ensuring its overall efficiency.

Le Van Xuat, Deputy General Director of Agribank, said the bank also devotes substantial resources to infrastructure and other nationally significant projects alongside its traditional focus on agriculture, farmers and rural communities. He stressed that infrastructure, particularly transport infrastructure, must come first to support economic development.

Agribank pledged comprehensive support for the project investor throughout construction and operation. The bank also committed to ensuring that all credit is directed to the project and eligible borrowers in accordance with the BOT contract, credit agreement and other relevant agreements. It pledged full compliance with lending and collateral terms and applicable laws to safeguard credit quality, banking system stability and the project’s investment activities.

Nearly VND 8 trillion in credit for a key expressway project

Agribank’s financing marks a further step towards completing the funding arrangements for the Bao Loc–Lien Khuong Expressway.

On 11 August, the Lam Dong Branch of the Vietnam Development Bank (VDB) and Bao Loc–Lien Khuong Expressway BOT Joint Stock Company signed a credit agreement for a loan of nearly VND 5 trillion under the state investment credit scheme.

Under the financing plan, the expressway’s first phase has a total investment of VND 17,717.8 billion. This comprises VND 7,760.8 billion in state budget funding and VND 9,957 billion to be raised by the investors and project company, including VND 1,992 billion in equity and loans from VDB and Agribank.

With Agribank’s facility, total credit committed by the two lenders now stands at approximately VND 8 trillion, equivalent to around 80% of the funding that the investors and project company must arrange. This provides an important financial foundation for the project’s implementation.

The first phase of the Bao Loc–Lien Khuong Expressway, developed under the PPP model, will extend approximately 73.62 kilometres. When finished, it will complete the Dau Giay–Lien Khuong expressway corridor, shorten journey times between Ho Chi Minh City and the Central Highlands, and provide fresh impetus for economic growth, tourism and logistics in Lam Dong and the wider region.

Bao Loc–Lien Khuong Expressway BOT Joint Stock Company was established as the project company. The investor consortium comprises T&T Transport Infrastructure Investment and Development Co., Ltd., a T&T Group member; Phuong Trang Investment Joint Stock Company (FUTA Group); and Phuong Thanh Transport Investment and Construction Joint Stock Company.

The Agribank agreement was signed just over a month after the deal with VDB’s Lam Dong Branch. Securing two long-term credit facilities totalling nearly VND 8 trillion in quick succession brings the project closer to completing its financing arrangements, a key requirement for major PPP infrastructure projects with substantial investment costs and long payback periods.

Backing from Agribank and VDB also demonstrates how public resources, private investment and the financial and banking system can work together to deliver major infrastructure. It enables the investors and project company to focus resources on the next stage of implementation, with the aim of bringing the expressway into operation sooner and realising the benefits of the investment.

Beyond the Bao Loc–Lien Khuong Expressway, T&T is involved in developing Quang Tri Airport and Component 3 of the Ring Road 4 project in the Hanoi Capital Region.

In logistics, T&T and its Singaporean partner are developing Vietnam SuperPort, a pioneering smart logistics hub within the ASEAN Smart Logistics Network. In industrial infrastructure, projects such as Nam Phuc Tho Industrial Cluster and Vam Cong Industrial Park are creating new space for local manufacturing.

In energy, T&T Group has projects in operation and under development with a combined capacity of nearly 2,900 MW. It is also continuing to develop a portfolio of approximately 14,000 MW across wind, solar, biomass and other clean energy sources. A notable example is the Savan 1 wind farm in Laos, whose 48 turbines generated approximately US$36.5 million in revenue in its first seven months of commercial operation. Savan 1 supplies around 900 million kWh of electricity to the national grid each year.

On 10 September in Paris, T&T Energy, a T&T Group member, and TotalEnergies Gas & Power Activities, part of TotalEnergies SE, exchanged a memorandum of understanding to jointly develop the 1,500 MW Long Son LNG power project in Ho Chi Minh City. Senior leaders from both countries witnessed the exchange, which took place during General Secretary and State President To Lam’s official visit to France and attendance at the Space Summit from 10 to 12 September. He was accompanied by his wife and a high-level Vietnamese delegation.