Vietnam parliament OKs use of state budget for North-South expressway sub-projects
The total investment capital of the expressway project has now been raised to VND100.81 trillion (US$4.32 billion), including VND78.46 trillion (US$3.36 billion) from the state budget.
Vietnam’s National Assembly (NA) on Friday agreed to change the financing format of three sub-projects under the Eastern North- South expressway project from public private partnership (PPP) to public investment with the endorsement of 91% of its deputies present.
The three sub-projects with finance sourced from the state budget are sections of Mai Son – National Highway No.45, Vinh Hao – Phan Thiet, and Phan Thiet – Dau Giay.
In addition to the VND55 trillion (US$2.35 billion) already allocated for the Eastern North – South project, the NA has also green-lighted to an additional funding of VND23.46 trillion (US$1 billion) from the state budget for the construction of these three sub-projects.
The NA requested the government to ensure the accuracy and rationality of total investment capital of these projects, scheduled to complete by the end of 2022 at the latest.
Previously, the government submitted a detailed plan for the implementation of the Eastern North- South expressway project in the 2017 – 2020 period, including three sub-projects using state funding (sections Cao Bo – Mai Son, Cam Lo – La Son and My Thuan 2 Bridge), and five under the public-private partnership (PPP) (National Highway No.45 – Nghi Son, Nghi Son – Dien Chau, Dien Chau – Bai Vot, Nha Trang – Cam Lam, and Cam Lam – Vinh Hao).
The government requested a change in financing investment methods for three sub-projects, including one without bid proposals from investors (section Vinh Hao – Phan Thiet), and two urgent projects connecting major political and economic hubs of the country (sections Mai Son – National Highway No.45 and Phan Thiet – Dau Giay).
With the changes, the total investment capital of the expressway project has now been raised to VND100.81 trillion (US$4.32 billion), including VND78.46 trillion (US$3.36 billion) from the state budget to be pumped into six state-funded projects.
The Eastern North-South expressway project, which is of national priority for investment in the 2017 – 2020 period, includes 11 sub-projects with a total length of 654 kilometers running through 13 provinces and cities. As per the initial plan, three would be financed by the state budget and eight under the PPP and build-operate-transfer (BOT) contracts.
The NA’s latest decision would mean the expressway project now consists of six projects to be funded by the state budget and other five under the PPP format.
As of present, over 1,000 kilometers of expressway have been built throughout the country, while an addition of 900 kilometers are set to be completed by end-2021.
In the 2021-2025 period, Vietnam targets to have at least 2,000 kilometers of expressways and by 2025, the figure would be 4,000 kilometers stretching from the northern province of Lang Son to the southernmost province of Ca Mau.
Including the Eastern North-South expressway, Vietnam would have four major roads across the country, including National highway No.1, Ho Chi Minh highway, and coastal highway.
- Vietnam seeks US support for semiconductor development
- US International Development Finance Corp to advance strategic relations with Vietnam
- Saudi’s major corporations plan to expand investment in Vietnam
- Vietnam to speed up US$59-billion high-speed train project
- Economic diplomacy catalyzes Vietnam’s development: PM
- Vietnam moves up 12 places in EIU’s business environment ranking
- Vietnamese Gov’t aims to approve North-South express railway project by 2025
- US-based infrastructure investment fund promises US$1 billion for Vietnam
- Vietnam ready upgrade US ties on 10th anniversary of comprehensive partnership
- Largest-ever US business delegation seeks investment opportunities in Vietnam
Launch of Resource Mobilization Plan for Vietnam’s low carbon journey
Vietnam news in brief - December 3
Vietnam’s e-commerce market set to hit US$20.5 billion
AI to help Hanoi accelerate smart city development
Data mining drives smart city building: vice chairman
Planning essential to promote smart city development
Amended Capital Law to develop Hanoi’s cultural industries
Vietnam advised to use cultural heritage as material for creative industries
Hanoi, British cities exchange experience in branding Creative City