Clarifying investment rate of Quy Nhon Expressway Project

The Ministry of Transport is requested to coordinate with localities to assess and clarify the preliminary total investment and the difference in investment rates of the Quy Nhon - Pleiku Expressway Project between the two sections in the two provinces of Binh Dinh and Gia Lai.

Clarifying the investment rate of Quy Nhon - Pleiku Expressway Project with capital of 35,940 billion VND

The Ministry of Transport is requested to coordinate with localities to assess and clarify the preliminary total investment and the difference in investment rates of the Quy Nhon - Pleiku Expressway Project between the two sections in the two provinces of Binh Dinh and Gia Lai.

Illustration photo.

This is one of the contents in Official Dispatch No. 9505/BKHĐT - PTHTĐT recently sent by the Ministry of Planning and Investment to the Ministry of Transport to comment on the investment plan for the Quy Nhon - Pleiku Expressway Project through the two provinces of Gia Lai and Binh Dinh.

According to the Ministry of Planning and Investment, in the Road Network Planning for the period 2021 - 2030, with a vision to 2050, the Quy Nhon - Pleiku Expressway Project has an estimated length of 180 km, starting at Nhon Hoi Port, Binh Dinh Province and ending at Pleiku City, Gia Lai Province, with a scale of 4 lanes, and investment progress after 2030.

Now, the Ministry of Transport and localities propose to invest in the Quy Nhon - Pleiku Expressway Project with a length of 123 km, starting point in An Nhon town and investment progress before 2030, which is not consistent with the Planning approved by the Prime Minister in Decision No. 1454/QD - TTg dated September 1, 2021.

Therefore, the Ministry of Planning and Investment requests the Ministry of Transport to clarify the basis, necessity and report to the Prime Minister on the different contents between the Project investment scale and the approved planning; at the same time, clarify whether the Project's governing body will be the Ministry of Transport or the People's Committees of Gia Lai and Binh Dinh provinces as a basis for determining the responsibility for completing the Project's Pre-Feasibility Study Report.

According to the review and update at the present time, the preliminary total investment of the Quy Nhon - Pleiku Expressway Project is 35,940 billion VND with a route length of about 123 km, a scale of 4 lanes according to the plan; the project investment rate is about 292 billion VND/km.

This investment rate, according to the Ministry of Planning and Investment, is quite large compared to some East-West expressways in the area connecting the Central Coast region with the Central Highlands region such as: Khanh Hoa - Buon Ma Thuot expressway with a length of about 117.5 km, scale of 4 lanes in divergence with a total investment of 21,935 billion VND, investment rate of about 187 billion VND/km; Gia Nghia - Chon Thanh expressway with a length of about 128.8 km, scale of 4 complete lanes with a total investment of 25,540 billion VND, investment rate of about 198 billion VND/km and Nha Trang - Da Lat expressway with a length of about 99 km, scale of 4 complete lanes with a total investment of 25,058 billion VND, investment rate of about 253 billion VND/km.

According to the report of the People's Committee of Gia Lai and Binh Dinh provinces sent to the Ministry of Planning and Investment in May 2024, the section passing through Binh Dinh province has a route length of 57.6 km, the total estimated investment is about 18,200 billion VND, with an average investment rate of about 317 billion VND/km; the section passing through Gia Lai province has a route length of 85.6 km, the total estimated investment is about 19,373 billion VND, with an average investment rate of about 226 billion VND/km.

Therefore, the Ministry of Planning and Investment requests the Ministry of Transport to coordinate with localities to further evaluate and clarify the preliminary total investment, the difference in investment rate of the Project between the two sections in the two provinces and other routes, as a basis for reporting to the Prime Minister to submit to the National Assembly for approval of the investment policy according to regulations when the conditions for implementation are met.

In addition, the People's Committees of Gia Lai and Binh Dinh provinces reported that "with the scenario of the maximum state capital support level of 50% of the total investment according to the provisions of the PPP Law, the Project does not ensure financial efficiency according to regulations.

In order for the Project to be financially effective and the payback period for the scenarios of about 25 years, 18 years, 10 years, the level of state capital needed to support the Project accounts for 76% to 88% of the total investment, so investing in the PPP method is ineffective and difficult to be feasible.

According to the Ministry of Planning and Investment, in the above analysis, the People's Committees of Gia Lai and Binh Dinh provinces have only made a preliminary report, and have not yet had a detailed assessment and analysis report on the data and input and output parameters of the Project under the PPP method to have a basis and basis to report to the Prime Minister.

Therefore, the Ministry of Planning and Investment requests the Ministry of Transport to coordinate with the two provinces of Gia Lai and Binh Dinh to analyze, clarify, and provide specific information and calculation data to prove the above statement; at the same time, unify the information and data between the Ministry's report and the reports of the two localities (the ratio of state capital participation for the Project to be financially effective) to prove the suitability and necessity of converting the investment form from PPP investment to public investment.

The Ministry of Transport is also advised to only propose investment using public investment capital when it is not possible to mobilize investment capital for the Project by other investment methods and is able to balance capital from the state budget to invest in the Project, ensuring feasibility, including taking into account the decentralization plan for each locality to proactively use state budget capital managed by the locality to invest in sections of the route passing through the management area to reduce pressure on the central budget capital in the period of 2026 - 2030.

Source: https://baodautu.vn/lam-ro-suat-dau-tu-du-an-cao-toc-quy-nhon---pleiku-von-35940-ty-dong-d230524.html