Signing a credit contract worth 2,300 billion VND for Dong Dang - Tra Linh expressway
This is a credit contract for the PPP project to invest in the construction of the Dong Dang (Lang Son) - Tra Linh (Cao Bang) expressway signed between VPBank and Dong Dang - Tra Linh Expressway Joint Stock Company.
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| Credit contract signing ceremony for the Dong Dang - Tra Linh Expressway construction investment project. |
This afternoon (October 4), in Hanoi, Dong Dang – Tra Linh Expressway Joint Stock Company and Vietnam Prosperity Joint Stock Commercial Bank (VPBank) signed a credit contract for the PPP project to invest in the construction of the Dong Dang – Tra Linh Expressway worth VND2,300 billion.
“Although it only accounts for about 15% of the total investment of the project, this credit contract is not only an important resource but also proves the financial feasibility of the Project,” said Mr. Ho Minh Hoang, Chairman of Deo Ca Group - the leading unit of the investor consortium.
According to Mr. Ho Minh Hoang, in the PPP project to invest in the construction of the Dong Dang-Lang Son expressway, the PPP++ model is being used by Deo Ca Group to mobilize diversified capital sources. In which, the first plus sign is the support of policy mechanisms; the second plus sign is the financial potential of investors and banks.
Besides, there is a third plus sign in this Project, according to Mr. Hoang, which is the addition of the trust and expectations of the people of Cao Bang and Lang Son provinces; the responsibility to the country and the spirit of President Ho Chi Minh of all relevant parties for joining hands to bring the revolutionary homeland - Cao Bang up.
“We have been very persistent and made great efforts over the past 7 years to conduct research, propose capital mobilization solutions, and route handling solutions to be able to implement the Project in the field. The signing of this contract must not be a commitment on paper but must be implemented in reality, with early disbursement of capital according to the progress as what investors and contractors are doing to complete the project according to plan,” Mr. Ho Minh Hoang shared.
Acknowledging the efforts of Deo Ca Group, Mr. Tran Hong Minh - Secretary of Cao Bang Provincial Party Committee said that in fact, without waiting for the National Assembly to allow the increase of the State budget capital to 70%, the investor started construction right away when this capital was only 50% of the total investment.
“With a high sense of responsibility, Deo Ca Group has overcome many difficulties in geological terrain, researched and adjusted the route, reduced investment costs, led and gathered businesses to pursue the project, and found solutions to successfully implement the project,” Secretary Tran Hong Minh assessed.
The official opening of the credit capital source for the project, according to Secretary Tran Hong Minh, will create a milestone to concretize the credit capital source for the project. The support of credit institutions contributes to ensuring the success of the project, opening up long-term economic development opportunities for the northern border region of the Fatherland.
When the expressway is completed, Cao Bang province’s tourism industry will have many opportunities to develop. Tourists from all over will have easy access to famous tourist destinations such as Pac Bo National Special Relic Site, Ban Gioc Waterfall, Nguom Ngao Cave, etc.
The province's economy will also flourish when the convenient transportation system creates conditions for businesses to invest in production, agricultural processing, mineral exploitation and industrial development, factories, logistics centers, dry ports, etc., creating many jobs for people, improving people's lives and developing the locality.
Mr. Tran Hong Minh affirmed that the government and people of Cao Bang province are actively preparing the best conditions for socio-economic development. The province will create all favorable conditions for investors and businesses to come to Cao Bang.
“With the long-term vision and consensus of the Party, government and people, I believe that Cao Bang will not only be a “fence” province at the headland of the Fatherland, but will become an important trading center, a bright spot in socio-economic development in the northern mountainous region,” said the Secretary of the Cao Bang Provincial Party Committee.
The Dong Dang – Tra Linh expressway construction investment project is a route connecting the economic “blood vessels” from the capital Hanoi to the northern border region, the border of the Fatherland.
Since its inception, the project has received attention from the Party, the National Assembly and strong direction from the Government.
When completed, this project will be a testament to the unanimous coordination between the parties involved, the crystallization of "the Party's will and the people's will", thereby realizing the dream of the ethnic people of Lang Son and Cao Bang provinces about a modern highway in the northeastern mountainous region of the country.
The PPP project to invest in the construction of the Dong Dang - Tra Linh expressway has a total length of 121km, and is divided into 2 investment phases.
Phase 1, Dong Dang - Tra Linh Expressway is invested with a length of more than 93km. The starting point is at Tan Thanh border gate intersection (Van Lang district, Lang Son province). The ending point is at National Highway 3 intersection (Chi Thao commune, Quang Hoa district, Cao Bang province). Deo Ca Group is the leading investor of the consortium implementing the phase 1 project.
The completed project will enhance domestic and international trade connections, contribute to improving local and regional competitiveness, create momentum for socio-economic development, and ensure national defense and security.
It is known that, immediately after the groundbreaking ceremony (January 1, 2024), the People's Committee of Cao Bang province launched the "100-day and night peak campaign to complete the site clearance work at the Project". Up to now, the site clearance work for the section passing through Cao Bang province has reached 35.36/41.55km, equivalent to 85%, meeting the construction schedule.
For the scope in Lang Son province, the site clearance work has so far reached 16.16/51.8 km (equivalent to 31.2%). The People's Committees of Cao Bang and Lang Son provinces are coordinating with relevant parties to promote the site clearance progress, determined to complete the site clearance work in 2024.
According to Dong Dang - Tra Linh Expressway Joint Stock Company, as of early October 2024, the Project has mobilized 847 personnel, 284 machines and equipment, deployed 25 simultaneous approaches, organized construction according to the handed-over site segments, applied modern technical solutions and construction technology, increased the application of digital technology in design, construction and management to ensure project progress, quality and efficiency.
The project has disbursed 297 billion VND/9,800 billion VND of state budget capital; more than 300 billion VND/1,813 billion VND of investor and contractor capital.
“To complete and put the project into operation in 2026, the prerequisite is that capital sources must be cleared and relevant parties must disburse to meet the project's progress,” said a representative of Dong Dang - Tra Linh Expressway Joint Stock Company.
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