Prime Minister approves increase in State capital to build Dong Dang – Tra Linh expressway to 9,800 billion VND
The proportion of State capital participating in the PPP project to invest in the construction of the Dong Dang (Lang Son province) - Tra Linh (Cao Bang province) expressway after adjustment will reach 68.76% of the total investment of the project.
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| Construction of tunnel No. 2 on Dong Dang - Tra Linh highway. |
The Prime Minister has just signed Decision No. 1436/QD-TTg adjusting the investment policy of the Dong Dang (Lang Son province) - Tra Linh (Cao Bang province) expressway construction investment project under the PPP form approved in Decision No. 20/QD-TTg dated January 16, 2023.
Accordingly, the preliminary adjusted total investment for phase 1 of the Project is 14,114,781 billion VND; the total investment for phase 2 will be accurately calculated when the implementation start date is determined.
The Prime Minister also decided to adjust the investment capital structure of the Project Phase 1. Accordingly, the capital mobilized by investors (equity, loans and other legal capital sources) is 4,314.781 billion VND; the state budget capital participation is 9,800 billion VND (previously 6,580 billion VND).
State capital will include capital to support construction of works, infrastructure systems of the project and to pay compensation, site clearance, resettlement support, and support for construction of temporary works for the entire project.
Of which, the central budget capital is 5,720 billion VND (including 2,500 billion VND assigned in the medium-term public investment plan of state budget capital for the period 2021 - 2025 and 3,220 billion VND for the period 2026 - 2030); local budget capital is 4,080 billion VND.
In addition, the project implementation time has also been adjusted, in which phase 1 is from 2020 to 2026; the operation time and toll collection to recover capital is about 22 years and 4 months. Phase 2 will be implemented after 2026.
Investors are allowed to use equity and capital mobilized from other legal sources to invest in the project; capital is repaid by collecting hidden tolls on the entire expressway.
The Project's fees will be collected in accordance with the provisions of law and ensure the harmony of interests between the State, users and investors. The State budget capital participating in the project will be implemented in accordance with Article 69 and Article 70 of the PPP Law.
The expected fare on the Dong Dang - Tra Linh expressway with a closed toll collection method, the fare for 5 groups of vehicles is respectively: 2,000 - 2,860 - 3,520 - 5,710 - 7,710 (VND/km), periodically after 3 years, the competent state agency will preside and coordinate with relevant agencies to evaluate and consider adjusting the road toll price of the Project.
The Prime Minister allows the Project to apply special mechanisms according to Appendix III (road projects through localities with one locality as the managing agency) and Appendix IV (projects applying policies on exploiting minerals as common construction materials) of Resolution No. 106/2023/QH15 dated November 28, 2023 of the National Assembly.
Other contents remain the same as Decision No. 1212/QD-TTg dated August 10, 2020 and Decision No. 20/QD-TTg dated January 16, 2023 of the Prime Minister.
The Prime Minister assigned the People's Committee of Cao Bang province to take full responsibility for the information and data in the report on the proposal to adjust the investment policy of the Project; to organize the preparation of the adjusted Feasibility Study Report according to regulations and to receive appraisal opinions of the Interdisciplinary Appraisal Council; and at the same time take full responsibility for selecting investors according to its authority and reviewing the selection of investors when the Project has adjusted investment policies, ensuring strict compliance with legal regulations.
The People's Committee of Cao Bang province is responsible for coordinating with the Ministry of Planning and Investment to review the contents of the negotiated and signed Contract between the Parties, adjust the BOT Project Contract in accordance with the provisions of the PPP Law and guiding Decrees, ensuring the harmony of interests of the State - Investors - People.
According to Mr. Ho Minh Hoang, Chairman of Deo Ca Group (the leading enterprise of the investor consortium), as of mid-November 2024, at the Dong Dang - Tra Linh Expressway Construction Investment Project, the site clearance work for the entire project reached 87.4 km/93.35 km (equivalent to 93.6%), of which Cao Bang province reached 41.1/41.55 km (equivalent to 99%), Lang Son province reached 46.3/51.8 km (equivalent to 90%).
With the spirit of "overcoming the sun, overcoming the rain", "eating quickly, sleeping urgently" and working in "3 shifts and 4 shifts", investors, project enterprises, and construction contractors mobilized 1,020 personnel, 357 machines and equipment, deployed 36 teams to simultaneously approach and organize construction day and night when the land segments were handed over.
The project has disbursed 1,429 billion VND of capital sources including State budget capital, mobilized investor capital and 120 billion VND of credit capital.
The total output expected to be completed in 2024 is 1,010 billion VND, the total disbursement of capital sources is 2,000 billion VND, laying the foundation for the determination to open the route in 2025.
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