The scenario for expanding the Ho Chi Minh City - Trung Luong - My Thuan expressway worth 38,693 billion VND is gradually becoming clearer.
The investment plan for the Ho Chi Minh City – Trung Luong – My Thuan Expressway expansion project is gradually being shaped by the proposed investor and the unit preparing the Pre-Feasibility Study Report.
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| A section of the Ho Chi Minh City – Trung Luong expressway. |
Project Management Board 7 - the unit assigned to prepare the Pre-Feasibility Study Report has just sent a report to the Ministry of Transport on the implementation of the investment project to build and expand the Ho Chi Minh City - Trung Luong - My Thuan Expressway under the PPP investment method.
Accordingly, Project Management Board 7 requested competent authorities to promptly update and adjust the Road Network Planning for the 2021-2030 period, with a vision to 2050, for the Ho Chi Minh City - Trung Luong Expressway section to have a basis for appraisal and approval.
To resolve the difficulties with the locality, thereby ensuring the feasibility of the Project and the implementation progress, for the section passing through Long An province, Project Management Board 7 proposed that the Project does not include the investment item to complete the component project 7 of Ho Chi Minh City Ring Road 3 (the section passing through Long An province is 6.37 km long) with an estimated cost of about 1,794 billion VND and the rest stop at Km12+800 (left side of the route) with a scale of about 20 hectares. This item will be researched by the locality for investment in a suitable method and time.
For the section through Tien Giang province, the Project will not include the residential access road (total length of about 49 km) and the locality is requested to study investment in a suitable method and time.
Regarding the plan to repay the state budget capital advanced to invest in the Ho Chi Minh City - Trung Luong Project (phase 1), the unit preparing the Pre-Feasibility Study Report recommends agreeing with the proposed plan of the project investor (a consortium led by Deo Ca Group).
Specifically, the investor will use the revenue from the first 10 years of collecting capital recovery fees to repay the state budget capital advanced to invest in the Ho Chi Minh City - Trung Luong Project (phase 1).
If this plan is implemented, the time to collect fees to recover capital for the PPP project to invest in the construction and expansion of the Ho Chi Minh City - Trung Luong - My Thuan expressway is 23 years and 5 months, of which the first 9 years the revenue is not enough to pay the loan interest, so the investor must arrange a loan interest compensation plan of about 6,300 billion VND.
It is known that the main research scope of the Project is the entire 91.8 km long expressway from Ho Chi Minh City to My Thuan, intersections (interconnecting and direct), works on the route (bridges, culverts, etc.), intelligent traffic system, toll collection system.
Implementing the written opinions of Ho Chi Minh City, Long An province, Tien Giang province, Vietnam Road Administration, the investor has expanded the scope of research, including: the plan for a regional traffic control center; construction of a connecting road from DT.818 to the expressway in Long An province; expansion of Ho Chi Minh City Ring Road 3 (the section through Long An province is 6.37 km long); renovation of about 49 km of parallel road with the expressway in Tien Giang province, location and scale of rest stops serving traffic needs on the Project (at Km28+200 and Km78+220); state budget capital recovery for phase 1 of the Ho Chi Minh City - Trung Luong expressway section.
Based on the research results on the scope of investment, the investor, based on the legal basis of the Project, calculated and built investment scenarios to expand the expressway from Ho Chi Minh City to My Thuan according to different options (investing in each section as an independent project, investing in expanding the entire route as a project, investing in the public investment method, investing in the PPP method).
From there, the investor has chosen the optimal investment option, which is to invest in expanding the entire Ho Chi Minh City - Trung Luong - My Thuan expressway, 91 km long, in the period of 2024-2028 under the PPP method, BOT contract, without state budget capital participating in the Project.
With the expansion of the existing section to 8 lanes and investment in synchronous infrastructure works, the PPP project to invest in the construction and expansion of the Ho Chi Minh City - Trung Luong - My Thuan expressway will have a preliminary total investment of 38,693 billion VND.
It is expected that 100% of the capital for the Project will be arranged by the investor, of which, equity capital is 5,804 billion VND (15% of total investment), loan capital and other legally mobilized capital sources are 32,889 billion VND (85% of total investment).
It is known that after the Ho Chi Minh City – Trung Luong – My Thuan Expressway Expansion Project is completed and put into operation, it will bring about clear effects on socio-economic development; create development space and land fund, and shift the economic structure in the locality and region.
The project also contributes to enhancing the capacity of passenger and cargo traffic, saving time and transportation costs on the transport corridor from Ho Chi Minh City to the provinces of the Southwest; contributing to increasing the competitiveness of the economy in the context of deep integration; reducing traffic congestion and accidents on National Highway 1 and the existing expressway; creating jobs and increasing income for people, contributing to improving the cultural and spiritual life of the people.
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