Minister of Transport: Gia Nghia - Chon Thanh Expressway is feasible because investors are interested

Explaining the opinions of the delegates, Minister of Transport Nguyen Van Thang affirmed that the Gia Nghia - Chon Thanh expressway project is feasible because there are interested investors and the payback period is relatively good.

On the morning of June 17, the National Assembly discussed in the hall the investment policy of Gia Nghia - Chon Thanh expressway.

Delegate Pham Van Thinh (Bac Giang delegation)

GIA HAN

Highly agreeing with the project investment policy, delegate Pham Van Thinh (Bac Giang delegation) said that this is a strategic road both politically and economically. However, he was concerned about the project's revenue. Accordingly, the Government's and the Ministry of Transport's reports mentioned that by 2030, the highest section from IC1 to IC3 will have only 7,600 vehicles passing through it per year. "That means we have less than 20 vehicles a day. If we calculate the average for 24 hours, there will not be even one car passing through the highway per hour," Mr. Thinh said. In the second case, by the capital recovery period in 2045, the highest will be 23,000 vehicles, meaning that no more than 60 cars will pass through here every day and night. Therefore, he suggested that it is necessary to consider and evaluate carefully. Delegate Trinh Lam Sinh (An Giang delegation) also requested the Government to clarify concerns so that delegates can confidently vote for approval. Accordingly, the Government needs to report further on the effectiveness of the construction and completion time of the project until 2026. In addition, it is necessary to take into account the interests of the two investors with BOT projects on National Highway 14 and Ho Chi Minh Road. When calling for investors under the PPP method, it is necessary to harmonize interests, share risks, and have an effective capital recovery plan. Because if it is not attractive enough to attract investors, the project may have to be converted to public investment, causing delays. Explaining and clarifying some issues of concern to National Assembly delegates, Minister of Transport Nguyen Van Thang said that according to the submitted financial plan, the Gia Nghia - Chon Thanh expressway is planned to have 6 lanes and will be completed with 4 lanes with 50% state capital participation. It is expected that by 2045, two more lanes will be added. "The project has a relatively good payback period compared to previous projects, about 18 years. This is a point that transport investors really like and banks also agree with," said Mr. Thang. Informing that there have been investors interested in and proposing to implement it, Mr. Thang commented that this project is highly feasible. Previously, the Government's explanatory report said that the consortium of Vingroup and Techcombank was interested in the project. In addition, another option is for the State to invest in the entire project, then transfer the toll collection rights, but the leader of the Ministry of Transport believes that "this solution does not need to be used".

Minister of Transport Nguyen Van Thang explained on the morning of June 17.

GIA HAN

Regarding the impact of the Gia Nghia - Chon Thanh Expressway on parallel BOT projects, Minister Thang said that the Government had anticipated this problem and requested the Ministry of Transport to submit a plan to handle and remove the affected BOT projects. Depending on the situation, the toll collection period may be extended if the two BOT projects are affected, but still ensure traffic volume and financial capacity. In case the revenue is too long, Mr. Thang said that he will consider supplementing a part of the state budget for the two projects and continue to collect tolls.

Construction project only about 1.5 - 2 years

Regarding the project's progress, many delegates questioned the feasibility of completing the project in 2026, but the Minister of Transport affirmed that this project was implemented at a favorable time when we have experience in many expressway projects. The implementation time of this project is calculated based on the experience of implementing the North-South expressway project in the East, phase 2, "usually only about 1.5 years, 2 years is too long". Previously, the North-South expressway project in the East, phase 2 started on January 1, 2023. These projects encountered many difficulties in materials and site clearance, but by solving these bottlenecks, the implementation time was very fast, not exceeding 24 months at most, many projects shortened the time by about 8 months. With the North-South expressway project in the West, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc), because there was no need to bid to find a construction unit, it was very convenient. In addition, regarding site clearance, the localities are very determined. "After the National Assembly approves, the Government will direct and the two localities will actively clear the site and are expected to start construction in 2024," the Minister of Transport affirmed. Another advantage is in terms of raw materials. According to current assessments, the two localities have fully arranged mine locations and reserves. In addition, the specific mechanisms for site clearance, bidding to build resettlement areas or arranging raw material mines... in this project are all very favorable. "For affected households, the Government will direct the two localities to best resolve the regime so that when they move to a new location, they will have better or at least equal conditions," the Minister affirmed. Regarding concerns that localities do not have enough budget capital to participate in the project, according to Mr. Thang, the localities are very determined and said they can arrange capital to participate in the project. For example, when building Dien Bien airport, the locality had to spend 1,200 billion VND while the provincial budget only collected 800 - 1,200 billion VND/year, but it was still completed.

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