A tunnel will be built through the 12km Ca Pass in the central province of Phu Yen to ease traffic and reduce accidents on National Highway 1 linking the country's north and south.

A provincial steering committee for the tunnel construction said the local Ca Pass Investment JSC would begin work on October 10 under a build-operate-transfer model at a cost of 9.5 trillion VND (500 million USD).

French banks Societe General and Credit Agricole have agreed to lend the company the amount.

Once completed in 2014, the tunnel will be 11.5km long and help reduce travel time through the pass from several hours to 15 minutes.

Vehicles travelling along the pass are often involved in accidents due to steep curves.

The tunnel will be the third on the highway after those through the Hai Van and Ngang passes.