18,489 billion VND needed to build Huu Nghi - Chi Lang expressway with 6 lanes
Currently, the main route of the Huu Nghi - Chi Lang Border Gate Expressway BOT Project is being implemented in phases with a scale of 4 lanes, a roadbed width of 17 m, and no continuous emergency lane.
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The People's Committee of Lang Son province has just sent an official dispatch to the Ministry of Transport with a plan to invest in and upgrade the expressways in the province to a complete scale, including the Huu Nghi - Chi Lang border gate expressway BOT project.
According to Decision No. 1454/QD-TTg dated September 1, 2021 of the Prime Minister approving the Road Network Planning for the period 2021 - 2030, with a vision to 2050, the Huu Nghi - Chi Lang border gate expressway belonging to the North - South Eastern Expressway has a total length of about 60 km, including the Huu Nghi - Chi Lang section of about 43.43 km long, with a planning scale of 6 lanes; the section connecting Tan Thanh border gate, Coc Nam border gate, connecting with Dong Dang - Tra Linh expressway is about 16.44 km long, with a scale of 4 lanes.
Currently, Lang Son Provincial People's Committee is implementing the Huu Nghi - Chi Lang border gate expressway project under the BOT form, in which the phased investment is 4-lane, roadbed width Bnền = 17m (no emergency lane) for the Huu Nghi - Chi Lang section, about 43.43km long; the route connecting Tan Thanh border gate and Coc Nam border gate is invested with 2-lane, roadbed width 14.5m (with emergency lane).
The total investment of the Project is 11,029 billion VND, including capital arranged by the investor and the PPP project enterprise (including: equity, loans and other mobilized sources) of about 5,529 billion VND (accounting for 50.13% of the total investment of the project); the state capital participating in the PPP project is 5,500 billion VND (accounting for 49.87% of the total investment), of which the central budget capital is 3,500 billion VND, the provincial budget capital is 2,000 billion VND.
In case of investing in the Huu Nghi - Chi Lang border gate expressway with a length of about 43.43 km, reaching the scale of 6 standard lanes, roadbed of 32.25m and expanding the route connecting Tan Thanh border gate and Coc Nam border gate with a length of about 16.44 km, reaching the scale of 4 lanes, roadbed of 22m, it requires 18,019.96 billion VND (excluding interest).
Thus, the state budget capital shortage when constructing a complete scale according to the above plan is about 7,315.59 billion VND short compared to the existing investment plan.
It is worth mentioning that the Huu Nghi - Chi Lang border gate expressway BOT project is not on the list of projects in Appendix I attached to Resolution No. 106/2023/QH15 of the National Assembly on investment in road construction (allowing the proportion of state capital participating in investment under the PPP method to exceed 50% of the total investment).
In case after completing the investment in the project phase, putting it into operation and exploitation; then continuing to invest in upgrading to reach the scale of a complete expressway under the PPP method, the BOT contract type will be subject to the provisions of Clause 4, Article 45 of the PPP Law: "For projects specified in Point b, Clause 91, Article 3 of this Law, the type of contract through the mechanism of direct toll collection from users shall not be applied".
In addition, Lang Son is a mountainous border province with extremely difficult socio-economic conditions, receiving about 80% of the central budget every year. Currently, the province's medium-term public investment plan for the period 2021-2025 has only been able to allocate 1,500 billion VND for the project, the rest must continue to be allocated in the medium-term public investment plan for the period 2026-2030.
Lang Son province has focused on reviewing resources and cutting down the list of public investment projects to allocate capital for the project, but due to the limited provincial budget and public investment plan, it will affect the overall progress of the project. Therefore, if the missing state budget capital is supplemented when upgrading to the full scale of the expressway, Lang Son province will not have enough resources to implement it.
To upgrade the Huu Nghi - Chi Lang T Border Gate Expressway BOT Project to a complete expressway scale, the People's Committee of Lang Son province proposed that the Ministry of Transport report to the National Assembly and the Prime Minister for consideration and approval: + The mechanism under Resolution No. 106/2023/QH15 be applied: the proportion of state capital participating in investment under the PPP method may exceed 50% of the total investment.
Because the project is in the stage of selecting investors, expected to be completed in March 2024 and start construction, the People's Committee of Lang Son province requested the Ministry of Transport to report to the Prime Minister and the National Assembly to consider supplementing the missing capital when investing in the complete expressway scale with the central budget as a basis for the People's Committee of Lang Son province to carry out investment adjustment procedures.
“In case the state budget has not yet allocated the remaining capital to invest in the complete expressway scale. We propose that the Ministry of Transport submit a report to the Prime Minister and the National Assembly to consider allowing the project to apply the PPP contract type through the mechanism of collecting fees directly from users,” the leader of Lang Son Provincial People's Committee proposed.
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