HCM City has asked the Ministry of Planning and Investment for official development assistance and other soft loans worth US$380 million for (the third phase of) the project to dredge the section of Soai Rap River between HCM City and the East Sea.
|A canal in Ho Chi Minh City needs to be dredged (Photo:Anh Quan)|
The passage will be dredged and widened and the buoy system will get an upgrade to make the river navigable for vessels of over 50,000 tonnes, allowing them to dock at ports along the river.
According to the city People's Committee, the Soai Rap passage is one of the most important factors in developing the maritime economy of the city and neighbouring provinces and increasing their revenues.
Last year, the city attained import/export tax payments of over VND89 trillion (nearly $4 billion), accounting for 35 per cent of the city's total tax revenues in 2014.
Last August the city sought the Government's approval to spend VND300 billion ($13.4 million) to further dredge the Soai Rap passage which receives up to 2.5 million cubic metres of alluvial soil a year, affecting navigation.
Starting in November 2012, 54km of the river covering 1,308ha in HCM City and Long An and Tien Giang provinces was dredged, with the work being completed in mid-2014.
The dredging requires a total of nearly VND2.8 trillion ($124.4 million).
The volume of cargo to be transported through the passage in 2015 –25 is estimated at 120-150 million tonnes, bringing in revenues of VND580-720.4 trillion ($25.9 billion - $32.2 billion).
Together with the Cai Mep – Thi Vai passage in Ba Ria – Vung Tau Province, the Soai Rap passage paved the way for developing the Southern Key Economic Zone into one of the key regions in the country and HCM City into one of the important commercial ports in the region.