The Hanoitimes - The 11 projects are estimated to cost a total of VND118 trillion (US$5.04 billion), of which VND55 trillion (US$2.35 billion) in state capital would serve as investment funds for three public investment projects, and counterpart funds for the other eight projects.
Vietnam’s Ministry of Transport (MoT) plans to open international biddings for eight sub-projects under the first phase of the Eastern North -South expressway project in the 2017 – 2020 period, according to Nguyen Nhat, vice minister of transport.
This is part of 11 projects with total length of 654 kilometers running through 13 provinces and cities, including three sourced from state budget and eight under the public-private partnership (PPP) and build-operate-transfer (BOT) formats, Nhat said at the investment promotion conference for the project held on May 17.
Overview of the conference. Source: Nguyen Tung.
The conference drew participation from 150 foreign and local investors, as well as representatives of 13 cities/provinces within the projects areas, donors and financial organizations.
“The MoT has approved project investment plans for the whole 11 projects and is working on technical designs and site clearance, all processes are scheduled to be completed in 2019,” Nhat said.
The 11 projects are estimated to cost a total of VND118 trillion (US$5.04 billion), of which VND55 trillion (US$2.35 billion) in state capital will be pumped into three public investment projects, and counterpart funds for the other eight projects.
According to Nhat, Deloitte and Ernst & Young are responsible for reviewing the financial structure of the project, drafting the bidding documents and contract forms.
“Selection criteria of investors have gone through a rigorous process and comply with local and international regulations, ensuring transparency, fairness and competition,” Nhat stressed.
“There would be no discrimination between foreign and domestic investors,” he continued.
Minister of Transport Nguyen Van the said Vietnam is on track to complete 1,500 kilometers of expressway. “Including the Eastern North – South expressway project, Vietnam would have a total of 2,000 kilometers of expressway by 2020.”
The minister said Vietnam would continue to build an additional 2,000 – 3,000 kilometers of expressway in the 2020 – 2025 period, while a number of research suggested the country would need at least 8,000 kilometers of expressway to support socio-economic development.
Nguyen Viet Huy, deputy head of the PPP Department under the MoT, said drawing experiences from previous BOT projects, the government would provide sufficient funds for the site clearance process and provinces/cities in projects area are responsible for completing the works.
“We ensure no changes in toll rates for a foreseeable future,” Huy stated.
As of present, the MoT has sold 80 tender documents for investors, of which many are from Japan, South Korea and China, among others, Huy informed, expecting more to express interests in the next two months.
For the 2017 – 2020 period, the North-South expressway project is divided into 11 sub-projects, including section from Cao Bo (Nam Dinh province) to Bai Vot (Ha Tinh province); Cam Lo (Quang Tri) to La Son (Hue); Nha Trang (Khanh Hoa) to Dau Giay (Dong Nai); My Thuan 2 bridge (Tien Giang and Vinh Long).
Three public investment projects are Cao Bo (Nam Dinh) – Mai Son (Ninh Binh), Cam Lo (Quang Tri) – La Son (Thua Thien - Hue), and My Thuan 2 bridge (Tien Giang – Vinh Long).