Ho Chi Minh City presents 4 infrastructure projects under BOT contracts, total capital of 57,000 billion VND

The investment policy to upgrade and expand 4 infrastructure projects under BOT contracts with a total investment of more than 57,000 billion VND has just been submitted by the Ho Chi Minh City People's Committee to the City People's Council for consideration and approval.

The investment policy to upgrade and expand 4 infrastructure projects under BOT contracts with a total investment of more than 57,000 billion VND has just been submitted by the Ho Chi Minh City People's Committee to the City People's Council for consideration and approval.

At the 21st session (special session) of the 10th term Ho Chi Minh City People's Council, which took place on the afternoon of February 20, the City People's Committee submitted documents deciding on the investment policy to upgrade and expand 4 BOT projects according to Resolution 98.

The first is the North-South axis road upgrade project (from Nguyen Van Linh Street to Ben Luc Long Thanh Expressway). The project's goal is to create a fast, less interrupted traffic route connecting the existing Central Area with the new urban area of South Saigon, the urban area - Hiep Phuoc port; forming a radial traffic axis connecting Ring Road 2 with Ben Luc - Long Thanh Expressway (Ring Road 3) and later Ring Road 4.

Accordingly, the project is located in District 7 and Nha Be District. The route length is about 8.6 km. Complete investment in a 60 m wide cross section, 10 lanes, and construction of technical infrastructure works in accordance with regulations.

Some sections of the North-South axis in Ho Chi Minh City have been cleared and are awaiting expansion. Photo : Le Toan

The land use area of the project is about 66.5 hectares, of which the land area required for site clearance is about 2.2 hectares (of which residential land is about 0.9 hectares, agricultural land is about 1.36 hectares).

The project is divided into 2 components for implementation. In which, component project 1 is compensation, support and resettlement, relocation of technical infrastructure of the project combined with the complete construction of Nguyen Van Linh intersection, the intersection with Ben Luc - Long Thanh Expressway. Public investment, using 100% of the State budget capital, equivalent to about 3,596 billion VND.

Component 2 is the upgrade of the North-South axis road, invested in the form of PPP - BOT contract, with about 6,298 billion VND (including loan interest of 531 billion VND). The state budget capital participating is about 1,084 billion VND, equivalent to about 17% of the total investment of Component 2. The capital of the participating investor is about 5,214 billion VND, equivalent to about 83% of the total investment of Component 2.

The total investment of the project is about 9,894 billion VND. Of which, the city budget is about 4,680 billion VND (accounting for 47% of the total investment including interest).

For the investor's capital, the PPP project enterprise is responsible for arranging about VND 5,214 billion (including loan interest of about VND 531 billion); of which the Investor's equity is at least VND 703 billion, accounting for 15% of the total project investment excluding state capital according to the provisions of the Law on Investment under the public-private partnership method.

Estimated implementation period is from 2025 to 2028. The city estimates the payback period to be 22 years and 1 month; Project contract term (BOT contract) is 25 years and 1 month.

The second is the project to upgrade and expand National Highway 1 (from Kinh Duong Vuong Street to the border of Long An province) . The project is located in Binh Tan and Binh Chanh districts with a length of about 9.62 km.

The project aims to create a fast inter-regional traffic route, connecting with highways and beltways, contributing to reducing traffic congestion and accidents at the southern gateway of the city. Improving the traffic capacity of National Highway 1, the East-West radial axis, contributing to promoting the socio-economic development of the city and neighboring provinces.

National Highway 1 through Binh Chanh District, Ho Chi Minh City.

The land use area is about 95.77 hectares, of which the land area to be cleared is about 29.18 hectares. The project is designed to be 60 m wide, equivalent to 10 - 12 lanes.

This project is divided into 3 components. In which, component project 1 - Compensation, support, resettlement in Binh Tan district with state budget, equivalent to about 1,068 billion VND; Component project 2 - Compensation, support, resettlement in Binh Chanh district with total capital of about 8,543 billion VND from state budget.

Component Project 3 - Upgrading and expanding National Highway 1 will be invested in the form of PPP - BOT contract with about 6,674 billion VND (including loan interest of about 802 billion VND).

The total investment of the project is about 16,285 billion VND (including interest of 802 billion VND during the construction period), of which the City budget is about 9,611 billion VND (accounting for 59% of the total investment including interest). The capital of the PPP project enterprise responsible for arranging is about 6,674 billion VND (including interest of about 802 billion VND); of which the Investor's equity is at least 1,001 billion VND, accounting for 15% of the total investment of the project excluding state capital.

The city plans to implement this project from 2025 to 2028. The payback period is 21 years and 11 months. The project contract term is 25 years and 11 months.

The third is the project to renovate and upgrade National Highway 22 (from An Suong intersection to Ring Road 3) . The project is about 8.03 km long, located in District 12, Hoc Mon District.

The project aims to create a fast traffic route, complete the regional traffic system, facilitate inter-regional and inter-regional connections, connect with highways and beltways, contributing to reducing traffic congestion and accidents at the western gateway of Ho Chi Minh City; increase capacity and efficiency of route exploitation, create the premise for the formation of the East-West economic corridor along National Highway 22, contributing to promoting the socio-economic development of the City and neighboring provinces.

The project's land use area is about 49.25 hectares, designed with a cross-section of 60.0m wide and a scale of 10 lanes.

This project is also divided into 3 components. In which, component project 1 - Compensation, support, resettlement and relocation of infrastructure serving the project in Hoc Mon district; total investment: 6,227 billion VND; invested in the form of public investment; Component project 2 - Relocation of infrastructure serving the project in District 12; total investment: 7 billion VND; invested in the form of public investment.

Component project 3 - Investment in construction, renovation and upgrading of National Highway 22 under BOT contract. Total investment: 4,190 billion VND (Investor capital).

Thus, the total investment of the entire project is about 10,424 billion VND (including interest of 436 billion VND during the construction period). Of which, the City budget capital is about 6,234 billion VND (accounting for 59.8% of the total investment including interest); the capital that the Investor and the PPP project enterprise are responsible for arranging is about 4,190 billion VND; of which the Investor's equity is about 628.5 billion VND, accounting for 15% of the total project investment.

The city plans to implement the project from 2025 to 2028. The payback period is 23 years and 7 months; The contract term is 25 years and 7 months.

National Highway 13, which often experiences traffic jams, will be widened by 60 meters to 10 lanes. Photo: Le Toan

The fourth is the project to upgrade and expand National Highway 13 (from Binh Trieu Bridge to the border of Binh Duong province). The project is located in Thu Duc City, with a land use area of about 39.54 hectares.

The project aims to create momentum for economic development, economic restructuring, continued and promoted investment in transport infrastructure, enhanced regional connectivity, and smooth traffic between economic centers, industrial centers, and cultural centers with international airports and ports.

The project is designed to be 60 m wide with a scale of 10 lanes and corridors for green trees and technical infrastructure works suitable to the planning scale. The design speed of the main route is 80 km/h; the design speed of 60 km/h for the second parallel road.

The project is divided into 2 component projects. Specifically, component project 1 - Compensation, support and resettlement of the project is about 14,619 billion VND from the state budget; Component project 2 - Upgrading and expanding National Highway 13 under the BOT contract with about 6,281.52 billion VND (including loan interest of about 639.37 billion VND).

Thus, the total investment of the project is about 20,900 billion VND. Of which, the City budget capital is about 14,619.33 billion VND (accounting for 69.95% of the total investment); investors participating in the project are responsible for arranging about 6,281 billion VND; of which the investor's equity is at least 942.23 billion VND, accounting for 15% of the total investment of the project.

The city plans to implement the project from 2025 to 2028. The expected payback period is about 18 years and 4 months.

Investors and PPP project enterprises enjoy incentives on tax, land use fees, land rent and other incentives according to the provisions of the law on tax, land, investment and other relevant legal provisions.

Source: https://baodautu.vn/tphcm-trinh-4-du-an-ha-tang-theo-hop-dong-bot-tong-von-57000-ty-dong-d248067.html