The Asian Development Bank (ADB) is set to provide a $410m loan to Vietnam for the construction of sections of a second arterial highway linking Ho Chi Minh City to the Mekong Delta and southern coastal regions.

The Central Mekong Delta Region Connectivity Project involves the construction of a section of the Second Southern Highway, consisting of two cable-stayed bridges with a combined length of 5km and 26km-long associated access and interconnecting stretches.

The road will run on the boundaries of the An Giang, Can Tho and Dong Thap provinces until the west of the Mekong Delta Region.

The two cable-stayed bridges and the interconnecting road are expected to reduce travel time between Ho Chi Minh City and Long Xuyen by one hour from 3.5 hours to 2.5 hours.

Travel times from the Cao Lanh ferry to the Vam Cong ferry will be reduced from 1.5 hours to 30 minutes, while the distance from Cao Lanh to Long Xuyen will be cut from 35.4km to 29km.

ADB Southeast Asia department Transport Specialist Rustam Ishenaliev said that Vietnam has a growing export-led economy, and the Mekong Delta is an important economic driver that produces over 60% of the country’s agricultural and fishery output and is the third largest industrial centre.

"The road will run on the boundaries of the An Giang, Can Tho and Dong Thap provinces until the west of the Mekong Delta Region."

"This transport link will help open up Vietnam’s western provinces in the Mekong River Delta and support its economic and industrial development," Ishenaliev added.

The project’s design protects the infrastructure from the climate change impacts in the Mekong Delta such as frequent severe weather events, violent seasonal flooding and sea level rise.

The project will support more inclusive development, provide improved access to basic social and health services, increases national food security and facilitate private sector investment in the region.

Expected to begin operations by the end of 2017, the new highway will benefit 170,000 users daily, and will help in the creation of 400,000 new jobs.

Of the total cost of $860m, $410m is financed from ADB’s Ordinary Capital Resources, while A$160m ($144m) is provided as grant financing from the Australian Agency for International Development (AusAID) for the Cao Lanh bridge and interconnecting road.

The project will also receive parallel financing of $260m from the Export-Import Bank of Korea will be used to construct the Vam Cong Bridge and its associated road works, as well as $56m from the Government of Vietnam.