The government last week rolled out the trial management structure and
deployment plan for Vietnam’s first public-private partnership (PPP) highway
project.
It was rolled out after the
Ministry of Transport (MoT) submitted the second trial management structure
draft and deployment plan to the Vietnamese government for the Dau Giay-Phan
Thiet highway project in the south last month.
Bitexco will be the first project
developer and the second will be selected through international competitive
bidding. Two developers will set up joint-venture to implement the project in
accordance with PPP model approved by the Vietnamese government.
The government and investors will
simultaneously have to mobilise capital for this important infrastructure
project.
Specifically, besides investment
incentives which developers will enjoy in accordance with Decision
71/2010/QD-TTg, the Vietnamese government will secure long-term loans for the
first developer from the World Bank’s International Bank for Reconstruction and
Development (IBRD).
The government also approved the
use of state funds to pay for site clearance, compensation and resettlement.
Equity capital of developers must
be higher than 20 per cent of construction expense. Bitexco’s capital
contribution ratio is 60 per cent and 40 per cent for the second investor.
The project’s total investment
has been scaled up to VND23.2 trillion ($1.12 billion) for two phases of
development. The project includes a main highway of 98.7km crossing the
southern provinces of Dong Nai and Binh Thuan and a 2.58km access road. The
first phase of construction calls for two lanes each way, with a later
expansion to three lanes each way.
The new highway is expected to
shorten travel from Ho Chi Minh City to the south-central region and
significantly ameliorate traffic conditions on National Highway 1, as well as
encourage development of industrial zones along the route and ecological
seaside resorts in central Binh Thuan, Ninh Thuan and Khanh Hoa provinces.
Nguyen Chung | vir.com.vn
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