Consulting on expanding Ho Chi Minh City - Trung Luong Expressway

Consulting on expanding the Ho Chi Minh City - Trung Luong - My Thuan expressway worth 33,910 billion VND

This project aims to expand according to the planning scale for the entire Ho Chi Minh City - Trung Luong - My Thuan expressway, 91 km long, including Cho Dem intersection in the period of 2024 - 2028.

A section of the Trung Luong - My Thuan expressway with 4 limited lanes.

The Ministry of Transport has just sent an official dispatch to the People's Committee of Ho Chi Minh City and the provinces of Long An and Tien Giang, requesting that the above localities provide their opinions on the Pre-Feasibility Study Report of the Investment Project to expand the Ho Chi Minh City - Trung Luong - My Thuan Expressway.

According to the Ministry of Transport, the Ho Chi Minh City - Trung Luong - My Thuan expressway is a radial axis, the southern gateway of Ho Chi Minh City, connecting the Mekong Delta with Ho Chi Minh City, playing an important role in contributing to the socio-economic development of localities in the region.

Recently, traffic volume on the route has increased, exceeding the service capacity of the route, causing frequent traffic jams and risks of traffic safety on weekends, holidays, etc.

To meet the transportation needs, serve the socio-economic development; implement the Prime Minister's direction on researching and implementing the project to expand the Ho Chi Minh City - Trung Luong - My Thuan Expressway under the PPP method, the Ministry of Transport has assigned the Joint Venture of Deo Ca Group - Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) - Tasco Joint Stock Company as the investor to prepare the project's pre-feasibility study report (proposed by the investor) to submit to the competent authority for approval.

To date, the proposed investor consortium has completed the Project's Pre-Feasibility Study Report.

In order to have a basis for appraising and approving the investment policy of the Project, in accordance with the socio-economic development orientation of the locality, the Ministry of Transport requests the People's Committee of Ho Chi Minh City, the People's Committees of Long An and Tien Giang provinces to study and give opinions on the Project's Pre-Feasibility Study Report.

The contents consulted include: conformity with the local socio-economic development strategy, plan and related planning; socio-economic efficiency, national defense, security and sustainable development of the locality; investment necessity and conformity in terms of investment form, objectives, location, scope, expected scale and other related contents.

The Ministry of Transport requires investors to propose projects, Project Management Board 7 is responsible for submitting complete documents and coordinating with relevant agencies and units of localities during the implementation process.

According to the proposal of the consortium led by Deo Ca Group, the Ho Chi Minh City - Trung Luong - My Thuan Expressway Expansion Investment Project will invest in expanding the entire Ho Chi Minh City - Trung Luong - My Thuan Expressway, 91 km long, including Cho Dem Interchange, in the period of 2024 - 2028 under the PPP method, BOT contract, without the participation of state budget capital.

In particular, the Ho Chi Minh City - Trung Luong expressway section starts at Km10+000 and Cho Dem intersection; the end point is at Km49+620 before Than Cuu Nghia intersection. The total length of the section is about 39.62 km, passing through Ho Chi Minh City about 1.2 km, Long An province about 28.5 km and Tien Giang province about 9.92 km.

This section is proposed to be expanded to 8 lanes and 2 continuous emergency lanes, with a roadbed width of 41 m. Because in phase 1, the land has been cleared to a complete scale of 8 lanes, the project to invest in the construction and expansion of the expressway section from Ho Chi Minh City to Trung Luong to My Thuan only clears additional land for some sections to invest in additional necessary items.

For the Trung Luong – My Thuan expressway section, Project Management Board 7 proposed the starting point at Km49+620 before Than Cuu Nghia intersection; the end point at Km101+126 at the intersection with National Highway 30. The total length of the section is about 51.506 km, passing through Cai Lay town and the districts: Cai Lay, Chau Thanh, Cai Be, Tan Phuoc (all in Tien Giang province).

Because in phase 1, 4 lanes and a discontinuous emergency stop strip were invested, the roadbed width was 17 m, and the site was cleared according to the complete scale of 6 lanes, the project to invest in the construction and expansion of the expressway section from Ho Chi Minh City to Trung Luong to My Thuan will invest in expanding 6 lanes and 2 continuous emergency stop lanes, the roadbed width is 32.25 m, and only clears additional land in some sections to invest in additional necessary items.

If the investment in both the rest stops and the intelligent traffic control and management system is synchronized, the project to invest in the construction and expansion of the expressway section from Ho Chi Minh City to Trung Luong to My Thuan will have a total investment including interest during the construction period of VND 33,910 billion.

Of which, equity is 5,087 billion VND (15% of total investment), loan capital and other legally mobilized capital sources are 28,823 billion VND (85% of total investment).

With the expected capital mobilization interest rate during the construction and operation period of 10.75%/year; the investor's equity profit rate of 13.88%/year; the starting road service price (from 2027 - 2028) of 1,300 VND/km/type 1 vehicle and 2,100 VND/km/type 1 vehicle in the next phase, ticket price increase of 12%/3 years, the Project will have a payback period of 18 years and 3 months.

Source: https://baodautu.vn/tham-van-mo-rong-cao-toc-tp-hcm---trung-luong---my-thuan-tri-gia-33910-ty-dong-d227817.html