Minister of Transport talks about the progress of Gia Nghia Expressway implementation

TPO - According to Minister of Transport Nguyen Van Thang, if the construction project of the North-South Expressway in the West, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) section, starts in 2025, it will be completed by the end of 2026.

On the morning of June 17, the National Assembly discussed in the hall the investment policy of the North-South Expressway construction investment project in the West, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) section.

At the discussion session, National Assembly deputies (NADs) stated that this is a very important traffic axis project, connecting the Central Highlands with the Southeast region, the Southwest region and Ho Chi Minh City.

Minister of Transport says progress on Gia Nghia - Chon Thanh expressway is 'completely feasible'

National Assembly Delegate Tran Van Tien (Vinh Phuc). Photo: Nhu Y

The project investment will solve traffic infrastructure bottlenecks, create new space, and act as a driving force for socio-economic development, ensuring national defense and security in the Southeast and Southwest regions.

Agreeing to submit the project investment policy to the National Assembly, however, National Assembly Deputy Tran Van Tien (Vinh Phuc) proposed to review the loan interest rate of 10.7% in phase 1, to comply with current loan interest rate regulations.

Meanwhile, National Assembly Deputy Nguyen Cong Long (Dong Nai) noted that it is necessary to carefully review the effectiveness of the project and the method of capital allocation. If possible, it should be arranged according to the method of central capital and investor capital, on the basis of arranging to ensure the leadership of public investment and the leading role of the State.

Delegate Ta Van Ha (Quang Nam) also proposed having a contingency plan for capital sources to ensure project progress; at the same time, having a mechanism to strengthen supervision of project implementation, especially in applying bidding mechanisms for consulting packages, compensation packages, site clearance and resettlement.

Minister of Transport says progress on Gia Nghia - Chon Thanh expressway is 'completely feasible' photo 2

Minister of Transport Nguyen Van Thang. Photo by Nhu Y

Speaking further, Minister of Transport Nguyen Van Thang said that this is a relatively complete project, planned with 6 lanes, and will construct 4 complete lanes, with 50% of the State's capital support. After reaching full load, 2 more lanes will be expanded on this section.

According to Mr. Thang, through calculations, this will be a project with a relatively good payback period compared to previous projects, suitable for investors, and also highly appreciated by banks.

However, the Transport Sector Commander also said that projects are likely to encounter difficulties when the capital mobilized from banks to invest in BOT projects is mainly short-term, medium-term and long-term. With a project with a payback period of about 18-20 years like this one, investors will prioritize revenue to repay bank loans, so it will be very suitable and feasible in attracting investors.

Regarding progress, Minister Nguyen Van Thang said that the project implementation time is favorable as there is experience in implementing road systems, especially expressway systems.

According to Mr. Thang, if the project starts in 2025, it will be completed by the end of 2026. "The expected progress is completely feasible and achievable," Mr. Thang affirmed.

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