Consider the feasibility of the Gia Nghia Expressway PPP project

This morning (June 17), the 15th National Assembly entered the first working week of the second session. At the beginning of the morning session, the National Assembly considered and voted to approve the adjustment of the Program of the 7th session of the 15th National Assembly.

The National Assembly's discussion session on the investment policy for the North-South Expressway project, western section, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc).

Afterwards, the National Assembly discussed in the hall the investment policy for the construction project of the North-South Expressway in the West, from Gia Nghia (Dak Nong) to Chon Thanh (Binh Phuoc). The Minister of Transport explained and clarified a number of issues raised by National Assembly deputies.

Voters hope for Gia Nghia - Chon Thanh expressway soon

Participating in the discussion at the hall, delegate Pham Van Hoa, National Assembly Delegation of Dong Thap province, expressed his agreement with the necessity of the North-South Expressway Construction Investment Project in the West, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc), saying that this is an important road section in connecting the expressway, connecting the arteries of the West and Southeast regions. Regarding the scale and investment project, the relevant agencies have been very receptive, in addition to investment from the state budget, it is necessary to use the public-private partnership method according to regulations and apply a special mechanism for this road section.

However, the delegate said that the Chon Thanh - Duc Hoa expressway section is currently only planned to be built as a level 3 plain road, and it is necessary to study and consider upgrading this section to a 4-lane route like the Gia Nghia - Chon Thanh section.

“According to the plan, the road will have 6 lanes, however, according to the immediate plan, we will build 4 lanes due to limited investment capital, the remaining 2 lanes will continue to be cleared, divided into phases for further investment when conditions permit,” said Mr. Hoa.

Regarding the impact of the project on BOT roads, Mr. Hoa said that according to the report, there are currently 2 existing roads implementing BOT, and continuing to implement them under the BOT method will lead to inadequacies, affecting the 2 existing BOT roads. Therefore, the Government and the Ministry of Transport need to conduct research to ensure fairness and convenience for investment partners.

Delegate Pham Van Hoa, National Assembly Delegation of Dong Thap province.

“Regarding the compensation and resettlement support plan, this is a very important project. According to the report, the number of people needing compensation is up to 1,299 households, and the area of ​​land that needs to be cleared is also very large. I suggest that the drafting agency and local authorities pay attention to research to ensure good implementation of compensation and resettlement support,” Mr. Hoa suggested.

Sharing the same view, delegate Dieu Huynh Sang - National Assembly Delegation of Binh Phuoc province emphasized the need to resolve traffic infrastructure bottlenecks, creating momentum to promote socio-economic development in the Southeast and Southwest regions.

Delegate Dieu Huynh Sang said that the investment project to build the North-South Expressway in the West, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) section, is to concretize the socio-economic development strategy, which has been oriented for investment in Resolutions No. 23 and No. 24 of the Politburo. According to the delegate, when the transportation system develops, it will be a premise to create momentum for infrastructure development, socio-economic development and people's lives will be increasingly improved...

“According to the planning, the project is a very important traffic axis, connecting the Central Highlands with the Southeast, Southwest and Ho Chi Minh City. Investing in the expressway project will solve traffic infrastructure bottlenecks, create new spaces, and promote socio-economic development, ensuring national defense and security in the Southeast and Southwest regions…”, delegate Sang proposed.

Delegate Dieu Huynh Sang - National Assembly Delegation of Binh Phuoc province.

Delegate Nguyen Truong Giang - National Assembly Delegation of Dak Nong province expressed that the investment project to build the North - South expressway meets the long-standing expectations of compatriots and voters in this area.

“The North-South Expressway, Western section, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) aims to concretize the 10-year Socio-Economic Development Strategy 2021 - 2030 and the Politburo's Resolutions on the development of the Central Highlands and Southeast regions,” said Mr. Giang.

According to Mr. Giang, the investment in the Project will gradually complete the planned expressway network, opening up new development space for localities and strengthening regional connectivity in general and intra-regional connectivity in particular, creating momentum, spreading power, and facilitating connections with Long Thanh International Airport and Cai Mep - Thi Vai port, serving the socio-economic development of the Central Highlands and Southeast regions, helping to strengthen national defense and security.

“To ensure the project’s progress, I propose that the contractor for the exploitation of minerals for construction materials does not have to carry out the procedures for granting a license for the exploitation of minerals for construction materials, which is usually included in the construction materials survey dossier. The exploitation of minerals as prescribed in this clause shall be carried out until the completion of the project. In cases where it is not necessary to establish an investment project for mineral exploitation, it is not necessary to carry out the procedures for preparing an environmental impact assessment report…”, Mr. Giang said.

Delegates hope that after the National Assembly approves the investment policy, the Government will soon implement the project, meeting the expectations of compatriots and voters, serving the socio-economic development of the Central Highlands and Southeast regions.

Gia Nghia - Chon Thanh Expressway to start construction in 2024

Explaining and clarifying some issues of interest to National Assembly deputies, Minister of Transport Nguyen Van Thang mentioned the feasibility of investing in projects under the PPP method.

Mr. Thang said that according to the submitted financial plan, the Gia Nghia - Chon Thanh expressway is planned to have 6 lanes and will complete construction of 4 lanes with 50% State capital participation. It is expected that by 2045, it will continue to expand to 2 more lanes.

Minister of Transport Nguyen Van Thang

“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.

According to the Commander of the Transport Sector, the financial efficiency and payback period of the Gia Nghia – Chon Thanh Expressway are similar to the three North – South Expressway projects in the East that have just been completed and are about to start collecting tolls. With investors interested and proposing to implement the project, Mr. Thang assessed that this project is highly feasible.

In addition, he also mentioned another option that the State invests in the entire project, then transfers the toll collection rights. However, the Minister believes that "this solution should not be used".

Regarding the impact of the Gia Nghia – Chon Thanh Expressway on parallel BOT projects, some delegates were concerned that when the entire route is completed, not only the two parallel BOT projects will be affected but also a number of other 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, especially due to the process of State investment in the Eastern North-South Expressway BOT projects and the cross-sections including this project.

The Ministry of Transport has also submitted a proposal, including a number of options depending on the actual level of impact.

First, Mr. Thang mentioned the option of extending the toll collection period if the two BOT projects are affected, but still ensuring traffic volume and financial capacity.

In case the revenue is too long, Mr. Thang said he will consider adding a part of the State budget to support the two projects and continue to collect fees.

Regarding the project's progress, many delegates questioned the feasibility of completing the project in 2026. The Commander of the Transport Industry affirmed that this project was implemented at a favorable time when we already had experience in many expressway projects.

The National Assembly discussed in the hall about "investment policy for the project to build the North-South Expressway in the West, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) section".

The project implementation time is calculated based on the experience of implementing the North-South Expressway project, phase 2, which is usually only about 1.5 years, while 2 years is too long, according to Mr. Thang.

As evidence, Mr. Thang said that the North-South Expressway, phase 2, started construction on January 1, 2023. These projects encountered many difficulties in terms of materials and site clearance, but if these bottlenecks were resolved, the implementation time would be very fast, no more than 24 months at most, and many projects would shorten the time by about 8 months.

Regarding the North-South Expressway project in the West, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) section, according to the Minister, there is no need to bid to find a construction unit, so it is 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 land 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 for resettlement area construction, or arrangement of raw material mines, capital, etc. in this project are all very favorable.

"For affected households, the Government will direct the two localities to best resolve the policy so that when they move to a new place, conditions will be better or at least equal to the old place," the Minister affirmed.

Some delegates were concerned that localities did not have enough budget capital to participate in the project. The Commander of the transport sector affirmed that localities were very determined and said that they could arrange capital to participate in the project.

The Minister cited that 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. "Therefore, with the two localities of Dak Nong and Binh Phuoc, we can completely trust them," said Mr. Thang.

Regarding the mechanism for exploiting mineral materials and the implementation process, the project may encounter problems with minerals that the State must recover according to regulations, the Minister agreed with the views of the delegates and hoped that the National Assembly would study and consider including them in the resolution to make the implementation process more convenient.

VOV.VN - According to the plan, Gia Nghia - Chon Thanh Expressway is part of the Western North - South Expressway. This is an important traffic axis, connecting the Central Highlands with the Southeast region, the Southwest region and Ho Chi Minh City with a length of about 128.8 km, and an investment of about VND25,540 billion.

Source: https://vov.vn/xa-hoi/can-nhac-tinh-kha-thi-phuong-an-ppp-cao-toc-gia-nghia-chon-thanh-post1102007.vov