New mechanism "attracts" investors to Binh Tien Bridge and Road Project

The Binh Tien Bridge and Road Investment Project under the public-private partnership model in Ho Chi Minh City, implemented under the mechanism of Resolution 98/2023/QH15, is attracting many investors to participate.

After Ho Chi Minh City included the Binh Tien Bridge and Road Project in the list of projects to be implemented under the new mechanism of Resolution 98/2023/QH15, in just the last 6 months of 2023, many investor consortia sent documents to the City government proposing to study the project. Tecco 1 - Vinh Hung - Hoa Binh Star is the latest consortium to send a document to the Ho Chi Minh City People's Committee proposing to invest in the Project under the form of a public-private partnership under a BOT contract.

The Binh Tien Bridge and Road Project was also pursued and proposed by Construction Corporation No. 1 (CC1) before. In a document sent to the Ho Chi Minh City People's Committee in July 2023, CC1 stated that Resolution 98/2023/QH15 provides breakthrough policies to solve difficulties in implementing the Project. "Currently, CC1 is still particularly interested and wishes to conduct a pre-feasibility study for the project," CC1 stated in a document sent to the Ho Chi Minh City People's Committee.

In a document sent to investors at the end of 2023, the Ho Chi Minh City Department of Transport said that the Department was assigned to prepare and submit to competent authorities for appraisal and approval of pre-feasibility study reports for 5 BOT projects implemented under Resolution 98/2023/QH15, including the Binh Tien Bridge and Road Project. According to the provisions of the Law on Investment under the public-private partnership method, the Project will have to bid widely to select investors, ensuring feasibility and compliance with current legal regulations.

The Binh Tien Bridge and Road Project was approved by the Prime Minister for Ho Chi Minh City to decide on the form of selecting investors to implement the project since 2010. In 2011, the Ho Chi Minh City People's Committee approved the investment project in the form of BT, with a total investment of 2,382 billion VND. Initially, Ho Chi Minh City planned to start the project in 2011 and complete it in 2014.

The project has been stalled since then due to the inability to arrange land for payment and changes in legal regulations. In 2023, many delegates of the Ho Chi Minh City People's Council requested the Department of Planning and Investment to study and include the project in the list of public investment capital allocations for early commencement.

According to the new plan, the Binh Tien Bridge and Road Project has a length of 3.2 km, starting at the intersection of Binh Tien Street and the existing Pham Van Chi Street, in District 6 (HCMC); ending at the intersection with Nguyen Van Linh Street in Binh Chanh District. The project has a total investment of 6,218 billion VND, of which the state budget contributes 54% and the enterprise contributes 46%.

According to the Ho Chi Minh City Department of Transport, the Binh Tien Bridge and Road Project is part of the City's list of priority infrastructure projects for investment in the 2021-2030 period. Currently, the bridges and roads connecting District 6 and the City Center with the South Saigon Urban Area (District 8, Binh Chanh District) are overloaded, with frequent traffic jams.

Early investment in the Binh Tien Bridge and Road Project is necessary when the Ben Luc - Long Thanh Expressway, Ring Road 3 and National Highway 50 expansion projects are completed in 2025, meeting the connection needs from the center of Ho Chi Minh City to District 8, Binh Chanh District and the Southern urban area, linking Ho Chi Minh City with the Mekong Delta provinces via the newly expanded National Highway 50 (expected to be completed in 2025).

According to the 2024 plan, the Department of Transport will prepare a feasibility study report and survey investor interest in the fourth quarter. The selection of investors will be carried out in the third quarter of 2025, with construction starting in the fourth quarter of 2025 or the first quarter of 2026. It is expected that Binh Tien Bridge and Road will be completed and put into operation from 2027 to 2028.

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