(NLDO) - Compared to public investment and investment under the PPP method, VEC being assigned to invest in the project to expand the Ho Chi Minh City - Long Thanh expressway section will have 5 advantages.
Ho Chi Minh City - Long Thanh Expressway is about to be expanded. Photo: Ngoc Han
The Ministry of Transport has just sent a report to the Government Standing Committee on the investment plan for the project to expand the Ho Chi Minh City - Long Thanh expressway section.
According to the report of the State Capital Management Committee at Enterprises, the investment scope is from the Ho Chi Minh City Ring Road 2 intersection to the Bien Hoa - Vung Tau expressway intersection (Km4+000 - Km25+920), length 21.92 km.
Regarding investment scale: Section from Ho Chi Minh City Ring Road 2 intersection (Km4+000) to Ho Chi Minh City Ring Road 3 intersection (Km8+770): 8 lanes according to planning. Section from Ho Chi Minh City Ring Road 3 intersection (Km8+770) to Bien Hoa - Vung Tau expressway intersection (Km25+920): 10 lanes according to planning.
Vietnam Expressway Corporation (VEC) mobilizes 100% of capital to invest in the Project and organize exploitation and toll collection to recover capital. Use central budget/local budget (HCMC, Dong Nai) to carry out site clearance and separate into independent projects in the form of public investment.
Preliminary total investment is about 14,955 billion VND, of which equity is 5,555 billion VND (37%), commercial loan is 9,400 billion VND (63%).
If approved by competent authorities, the project will be prepared for investment from 2024 - 2025, and investment will be implemented from 2025 to 2027.
The Ministry of Transport agrees with the opinion of the State Capital Management Committee at Enterprises that VEC is capable of being the investor and managing and operating the Ho Chi Minh City - Long Thanh Expressway, and believes that compared to public investment and investment under the PPP method, VEC being assigned to invest in the project will have 5 advantages.
Firstly, it is to promote the role and resources of state-owned enterprises, in line with the goal of forming VEC, synchronizing the operation and exploitation of expressways, which is a premise for VEC to invest in expanding expressways managed by VEC.
Second, it is consistent with the ownership of assets on this route by VEC in the coming time (procedures are being carried out to transfer these assets to VEC through the form of charter capital increase). Third, it does not have to use public investment capital, reducing pressure on the state budget.
Fourth, the implementation time is shorter. Finally, the option of assigning VEC to implement will not have to deal with conflicts of interest between VEC and the new entity (in the case of investment under the PPP method).
To ensure resources for implementation when assigning VEC to carry out the Ho Chi Minh City - Long Thanh Expressway expansion project, the Capital Management Committee has proposed that competent authorities consider and allow the postponement and deferment of principal repayment (nearly VND 4,000 billion that the Ministry of Finance has paid in bonds to VEC) and interest related to the project bonds that the Ministry of Finance has paid in bonds from the 2022 - 2026 period to the 2031 - 2034 period.
Commenting on this issue, according to the Ministry of Transport, VEC is currently dedicating all available resources (more than VND9,400 billion) to complete the Ben Luc - Long Thanh project. Therefore, for VEC to have equity capital to implement the Ho Chi Minh City - Long Thanh expressway expansion project, the only solution left is as proposed by the Capital Management Committee.
According to the provisions of Decree No. 92/2018/ND-CP; Decree No. 91/2018/ND-CP, the Prime Minister has the authority to consider debt forgiveness based on the report of the Minister of Finance.
The Ministry of Transport supports VEC's proposal. However, VEC needs to further study the plan to repay the principal and delay the interest payment. In particular, clarify the interest payments in each phase to propose a plan to submit to the competent authority for decision.
Regarding the capacity to mobilize commercial loans, on October 17, 2024, the Capital Management Committee submitted to the Government a plan to supplement charter capital for VEC in the 2024-2026 period of VND 38,251 billion. The Government Office is seeking opinions from relevant ministries and branches.
To ensure conditions for VEC to borrow commercial capital, the Ministry of Transport requested relevant agencies to speed up the reporting procedure to the Government for consideration and submission to the National Assembly for decision on the investment policy to supplement VEC's charter capital. This is one of the conditions for the Prime Minister to approve the project investment policy.
Source: https://nld.com.vn/mo-rong-cao-toc-tp-hcm-long-thanh-len-8-10-lan-xe-19624113012293606.htm
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