Vnre.blogspot.com - The Government has approved construction of an expressway connecting Dau Giay T-Junction in Dong Nai Province with the resort town of Phan Thiet in Binh Thuan Province under the public private partnership (PPP) format.
Binh Minh Import Export Production and Trading Group (Bitexco) and International Finance Corporation have been named the first and second investor of the project respectively. The third investor will be chosen via international tenders.
Meanwhile, Dong Nai and Binh Thuan provincial authorities are assigned to carry out site clearance and compensation projects. The road is expected to open to traffic in 2020, the government said on its website.
According to the country’s expressway development master plan until 2020, the expressway will have a total length of 128 kilometers. This will be the first PPP road project in the country with a total investment of US$745 million.
It will start at the junction between the Dau Giay-Phan Thiet section and the upcoming HCMC-Long Thanh-Dau Giay road in Dong Nai Province, and end at Nga Hai new urban township and Ham Kiem Industrial Park in Binh Thuan Province. The six-lane road will allow vehicles to travel at a maximum speed of 120 kilometers per hour.
The expressway will link up with the North-South expressway system whose several sections between Dau Giay and Can Tho City are under construction, including HCMC-Long Thanh-Dau Giay, Ben Luc-Nhon Trach-Long Thanh and HCMC-Trung Luong-Can Tho sections.
The new expressway, once in place, will create a complete expressway route stretching nearly 400 kilometers and passing through most economic hubs and key air, rail, sea transport routes in the southern key economic region.
The Ministry of Transport will appraise the feasibility report for the project before seeking loans from the World Bank. The legal mechanism and funding for the project will be decided after the Government approves the PPP mechanism and investment plan for the project, with approval from the international donor.
Since November last year, the Ministry of Planning and Investment has announced grants from the World Bank for Vietnam to help develop the PPP investment model for infrastructure projects and build the legal groundwork for financing PPP projects. The model could help private developers get support to tackle difficulties in investment capital as the State can share risks in the construction process.
The Government reportedly plans to pilot the PPP model in the Ninh Binh-Thanh Hoa expressway project.
In addition, the Ministry of Transport is calling for local and international private investors to take part in eight other major infrastructure projects under the PPP format.
They include Danang-Quang Ngai worth US$1.6 billion, My Thuan-Can Tho worth US$400 million, Noi Bai-Halong worth US$940 million, Halong-Mong Cai worth US$850 million, Dau Giay-Da Lat worth US$1 billion and Ben Luc-Long Thanh worth US$1 billion, Haiphong international port worth US$415 million and the HCMC-Can Tho railway.
Reported by Song Nguyen/ The Saigon Times Daily