VEC affirms its financial capacity to participate in investing in the expansion of two major expressways.

VEC affirms its ability to repay debt and is capable of implementing the investment plan to expand two expressways: Cau Gie - Ninh Binh and Hanoi - Lao Cai Yen Bai - Lao Cai section.

Just one day after the Ministry of Construction sent a document requesting the Vietnam Expressway Corporation (VEC) to evaluate the possibility of mobilizing capital to invest in expanding two expressways: Cau Gie - Ninh Binh and Hanoi - Lao Cai Yen Bai - Lao Cai section, VEC has issued an official report on this issue.

Accordingly, VEC affirms its ability to repay debt and has the ability to invest in expanding and upgrading both projects.

Cau Gie - Ninh Binh Expressway is being managed and operated by VEC (Photo: Ta Hai).

Providing evidence for the above viewpoint, the Yen Bai - Lao Cai section expansion project has a preliminary total investment of nearly 7,700 billion VND with the proposed capital structure including: State budget capital is 3,005 billion VND (about 40% of total investment); VEC mobilized capital is about 4,613 billion VND (about 60% of total investment, of which, VEC's own capital is 777 billion VND, loan capital is more than 3,200 billion VND, interest during construction is about more than 600 billion VND).

Based on the input parameters, the project's payback period is about 20 years. "The analysis results show that the cumulative cash flow of the expansion investment project alone is always positive. The cumulative after-tax cash flow of the five projects is also always positive, with the lowest positive level in 2027 being VND262 billion," VEC informed.

For the Cau Gie - Ninh Binh expressway expansion project, the total preliminary investment is expected to be over 2,100 billion VND with the accumulated capital structure including: State budget capital of about 840 billion VND (about 40% of total investment); VEC mobilized capital of about 1,300 billion VND (about 60% of total investment, of which, VEC's own capital is 270 billion VND, loan capital is 890 billion VND, interest during construction is about 113 billion VND).

"Calculations show that the cumulative after-tax cash flow of the expansion investment project alone is always positive. The cumulative after-tax cash flow of the five projects is also always positive, with the lowest positive level in 2032 being VND565 billion. Thus, this option is financially feasible," VEC affirmed.

According to the proposed plan, the Yen Bai - Lao Cai expressway section will be expanded from 2 lanes to 4 complete lanes, with a total length of more than 121km. The project is expected to be implemented in the period from 2025-2027.

The Cau Gie - Ninh Binh Expressway expansion project is proposed to expand the scale from 4 lanes to 6 lanes, with a total length of 50km. The starting point is at Km 210+000 (the starting point of the expressway) in Hanoi, connecting to the Phap Van - Cau Gie route.

End point at Km 260+030 on National Highway 10, section connecting Nam Dinh - Ninh Binh.

If approved, the project is expected to be constructed between 2026 and 2028.

Previously, on March 20, 2025, in a document sent to VEC, the Ministry of Construction requested that this enterprise review and evaluate the ability to mobilize capital to participate in investing in the expressways: Cau Gie - Ninh Binh, Noi Bai - Lao Cai, calculate the ability to repay the Government's ODA loans, the feasibility of the financial plan of the 2 projects in particular and the 5 projects currently managed and operated by VEC; Conformity with the plan to increase charter capital for the period 2024-2026 approved by competent authorities.

VEC is also required to develop an investment implementation plan for the above projects in case VEC is approved by competent authorities to propose VEC to contribute investment capital, including the project to expand the Yen Bai - Lao Cai section of the Noi Bai - Lao Cai expressway to start construction in 2025.

Source: https://www.baogiaothong.vn/vec-khang-dinh-du-nang-luc-tai-chinh-tham-gia-dau-tu-mo-rong-hai-tuyen-cao-toc-lon-192250327111750951.htm