Prime Minister Nguyen Tan Dung has approved a special mechanism for Quang Ninh Province and its Van Don Economic Zone, with official development assistance (ODA) loans prioritized for some infrastructure projects there.

Decision 2428/QD-TTg of the Prime Minister clarifies that as Van Don is one of 14 coastal EZs in the country, it will be developed by the State funding planned for the 2013-2015 period.

In addition to the existing investment incentives granted by the Government, Van Don will be given priorities to mobilize ODA loans for key infrastructure projects and get State funding equivalent to no more than 50% of the reciprocal capital for an ODA project if the province can manage the rest.

The Government will use the State budget, proceeds from Government bond sales and ODA loans to partially finance infrastructure projects in Van Don such as Van Don Airport, information technology facilities, Van Don international hospital and trans-island roads.

The authority of Van Don EZ can access foreign loans borrowed by the Government to develop tourist port and marina projects.

Van Don EZ is touted as one of the important gateways for international trade and a major driving force for development of the Northern Key Economic Region.

Van Don EZ covers more than 2,000 square kilometers, including over 1,600 square kilometers of water surface. The focus will be on developing luxury tourism products, commercial and financial centers, trade and logistics facilities, sea and air transport services, industry, clean and high-quality agricultural sector. 

The Prime Minister also allows the province to form a State-owned finance and investment company to mobilize funds for socioeconomic infrastructure projects based on the model of the State-owned Finance and Investment Company in HCMC.

The northern province has to prepare an establishment scheme for such a firm for submission to the Prime Minister for consideration and approval.

Besides, the government of Quang Ninh is assigned to draw up a scheme to develop Viet Hung Industrial Park into a theme industrial park like those in the northern city of Haiphong and the southern province of Ba Ria-Vung Tau.

According to the Prime Minister’s decision, Quang Ninh may get State funding and other legitimate financing sources in the annual plans in the 2015-2020 period to execute major projects like a road linking Halong City and Hanoi-Haiphong Expressway, Halong-Van Don-Mong Cai Expressway, Hai Ha Seaport, and environmental protection projects for Halong and Bai Tu Long bays.

The province will have priority access to ODA and concessional loans for socioeconomic development and environment projects like the environmental protection of Halong City and development of urban areas along the corridors of the Greater Mekong Sub-region (GMS).

The Government will consider allowing the province to implement some key infrastructure projects under the public-private partnership (PPP) model.