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Develop expressway systems at both ends of the country

At the end of last November, leaders of Cao Bang, Ca Mau, Ben Tre provinces and a well-known enterprise in the field of transport infrastructure investment, Deo Ca Group, got together to share experiences in attracting investment capital for PPP projects. The conference is a vivid and effective demonstration for many provinces and cities to learn about investment attraction strategy to build expressways and infrastructure effectively as well as in accordance with the guidelines of the Party, the Government, the National Assembly and the law.

IN MARCH 2020, COMPLETED THE PRE-FEASIBILITY STUDY REPORT OF DONG DANG - TRA LINH

The expressway project Dong Dang - Tra Linh, connecting Lang Son province to Tra Linh border gate of Cao Bang province, has taken an important step forward. In the meeting of Project Steering Committee, the Steering Committee’s assistant team said that after the Government issued the decision on approving the investment policy, the province put the project in the medium-term public investment portfolio for the period of 2021 - 2025 and completed before December 30, 2020; from February to October 2021, select consultant to prepare feasibility study report; approve project investment; allocate capital to the project; select construction drawing design consultancy; select construction contractors and kick-off the project.

At the meeting, Cao Bang Provincial People’s Committee proposed the Steering Committee of Dong Dang - Tra Linh Expressway Project to establish the Provincial Appraisal Council to appraise the feasibility study report for this PPP project.

In order to approve the feasibility study report in March 2021 and create the basis to allocate Central budget for the project, the Standing Committee of the Provincial Party Committee will work with Central ministries and departments, propose the Provincial National Assembly delegation reporting to the National Assembly and the Government to continue allocating state budget investment in difficult projects according to Resolution No. 973/2020/UBTVQH14 dated July 8, 2020.

Mr. Lai Xuan Mon - Secretary of Cao Bang Provincial Party Committee asked the Steering Committee to concretize the proposals; in which assign specific tasks to members of the Assistant Team, then sum up and submit to the Head of the Steering Committee as soon as possible to effectively implement the project.

Previously, Dong Dang - Tra Linh Project Steering Committee had carried out public land fund establishment, preparing expressways project documents. The Steering Committee affirmed that the expressway has a crucial meaning in economy – society and national defense - security. In the process of implementing the expressway project, the Steering Committee has mobilized the whole political system to participate; assign specific tasks and responsibilities to each level and department, and at the same time set up 7 assistant teams to fulfilled the requirements.

3 INVESTMENT PLANS FOR BAC LIEU - CA MAU EXPRESSWAY

Implementing the conclusion of the Prime Minister on promoting the investment of Can Tho - Ca Mau expressway, Ca Mau province has coordinated to review the investment planning and conducted research to invest in the period 2021 - 2025 (in which research on investment socialization in accordance with PPP law). At the same time, Ca Mau province invited Deo Ca Group to participate in research and propose investment options and agreed to propose to invest Bac Lieu - Ca Mau section in BOT form combined with public investment. Total investment is about 11,145 billion VND; In phase 1, the road scale is 17m wide, including 4 motor lanes; Implementation period is from 2021 - 2025.

Also in this conference, the experiences to attract investment capital for PPP projects was shared enthusiastically. In the south of the country, Ca Mau province talked about the orientations in developing transport infrastructure and the current problems and solutions; the investment of Can Tho - Ca Mau expressway, including Bac Lieu - Ca Mau section with the participation of Deo Ca Group.

On November 19, 2020, Ca Mau province sent a document to the Prime Minister, proposing the investment plan for Can Tho - Ca Mau expressway, section Bac Lieu - Ca Mau. Regarding the importance of the project investment, Ca Mau province said that Can Tho - Ca Mau expressway is a vertical traffic axis in the Mekong Delta region, approved by the Government in the Plan of Vietnam’s expressway network development by 2020 and vision to 2030, contribute to the development of the regional traffic network, connect major city centers, mitigate traffic accident, ensure traffic safety in the region, facilitate the socio-economic development, and ensure security and defense for the Southwestern region in particular and for the whole country in general. Therefore, the construction of Can Tho - Ca Mau expressway in the period of 2021-2025 is very urgent.

Ca Mau has given 03 investment plans for Bac Lieu - Ca Mau project. Accordingly, the first option is investing in public-private partnership form without the State’s capital contribution. The second option is investing in public-private partnership form with 50% capital from the Central budget, the half remaining arranged by the investor. The third option is to invest in public-private partnership combined with public investment. According to this option, the project is divided into 2 component projects, public investment and investment in the form of BOT contract with the State’s capital contribution.

After analyzing and evaluating investment plans, Ca Mau province recommended the third investment option. Accordingly, the items of large bridges and interchanges of the route will be invested by public investment in the period 2021-2025, total preliminary investment is about 2,730 billion allocated from the Central budget. The entire expressway is invested in the form of public-private partnerships with the State’s capital contribution, implemented in period of 2021- 2025, the total preliminary investment (including interest) is about 8,726 billion VND. Representatives of Ca Mau province said the time to implement this project is from 2021 - 2024, the expected payback period is about 15 years and 5 months.

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