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Nearly 50.000 billion VND invested two Highways: Gia Nghia - Chon Thanh and Nam Dinh - Thai Binh

(BP Portal) - According to the latest proposed plan, Gia Nghia - Chon Thanh highway has a total investment of VND29.986 billion, while CT.08 paragraph Nam Dinh - Thai Binh highway is more than VND18.000 billion.

Minister Nguyen Chi Dung has just had a working session with ministries and localities on investment options for building two Highway: Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) and CT.08 Nam Dinh - Thai Binh highway.

These are highways that have important implications in transportation and socio-economic development of the local, as well as the whole region.

In particular, the Gia Nghia(Dak Nong) - Chon Thanh (Binh Phuoc) Highway contributes to gradually completing the North-South highway to the West, not only for the development of Binh Phuoc and Dak Nong, but also for the Tay Nguyen and connecting the Southeast.

The CT.08 Nam Dinh - Thai Binh highway section along with the East Highway when completed will connect Thanh Hoa, Ninh Binh, Nam Dinh, Thai Binh to Hai Phong, creating the development momentum for the Northeast.

With such importance, after the meeting of the Permanent Government on 12/3, the Prime Minister agreed to invest these two highways in the public-private partnership method, the participation of the State will be taken from the revenue increase in 2022.

The prime Minister Nguyen Chi Dung presided over meetings with ministries and localities to study and come up with the most feasible and effective option, suitable for balance capabilities from now until 2025.

Gia Nghia - Chon Thanh Highway: Investor committed to investing VND16.000 billion

According to the new plan, the President of the People’s Committee of Binh Phuoc Province- Mrs. Tran Tue Hien reported, Gia Nghia – Chon Thanh highway project is expected to be invested in 2 phases, in which phase 1 will build 4 full lanes (including 4 highways and 2 emergency stop lanes). Phase 2, will invest in the planned finishing reaches 6 full lanes.

With this plan, the project is expected to have a total investment of VND29.986 billion. Of which, the cost of compensation, support and resettlement is VND4.640 billion; construction and equipment costs VND18.981 billion, in addition other costs, including VND1.130 billion in interest interest costs during construction.

Thus, compared to the plan reported Permanent Government on 12/3, the total investment of the project increased by more than VND 4.000 billion. Of which, the capital structure is defined as the state budget capital participating in the project is about VND 9.900 billion, the investor capital arranged about VND 20.086 billion, accounting for 67%.

In the participation of the State, in addition to the Binh Phuoc (VND3.000 billion) and Dak Nong (VND1.000 billion) arranged by the local budget, the provinces propose the Central support VND5.900 billion.

According to Mrs.Tran Tue Hien, the total investment increase is due to the previous plan, the project is expected to build with a limited 4 lanes size, while the current is the full 4 lanes, according to the direction of the Prime Minister.

Accordingly, if the participation of the State is kept the same, the investor capital - the Techcombank - Vingroup, will increase to more than VND20.000 billion.

However, at the meeting, the investor representative said, in the context of the current difficulty, the investor’s co-operation can only participate with VND16.000 billion, as the initial commitment.

In connection with this project, Minister Nguyen Chi Dung agreed with the proposal of Binh Phuoc and Dak Nong provinces on the part of local participation, while also understanding the difficulties of investors, so also agree the plan of participation of investors remaining the same as the original plan.

“The part of the team up due to adjusting the investment plan from 4 limited lanes to 4 complete lanes, we will report to the Prime Minister to find appropriate support for the project,” Minister Nguyen Chi Dung said and affirmed the determination to invest the Gia Nghia – Chon Thanh highway.

At the same time, the Minister recommended that the two provinces coordinate with the Ministry of Transport to review the total investment, because, in the Ministry of Transport's view, investment rates are slightly high.

"Reducing some investment money will reduce pressure on state participation then," the minister said.

CT.08 Nam Dinh - Thai Binh Highway: Geleximco is an investor, contributing VND 9.500 billion

At a scale of 60.9km, expected to invest 4 full lanes, the high-speed CT.08 project, section through Nam Dinh - Thai Binh is expected to have a total investment capital of more than VND18.081 billion, plus interest of VND18.823 billion.

The cost of ground clearance alone was VND3.105 billion, and the cost of construction and equipment was VND12.739 billion.

“According to the plan presented to the Government from March 12, the total investment level has decreased VND 2,800 billion, investment costs/km of roads, bridges are lower than the general norm,” the President of the People’s Committee of Thai Binh province – Mr.Nguyen Khac Thanh said.

According to Mr.Nguyen Khac Than, one of the basic reasons why the total investment of the project decreased by VND2.800 billion is due to investor - Geleximco Group, after reviewing and reference highway projects invested in PPP method, the BOT contract has been approved, decided to reduce the investment profit from 13.37% to 11.77%.

On the basis of the total new investment, the capital structure of the project is determined that the investor will spend VND9.511 billion, the state budget is VND9.312 billion, or 49.5% of the total investment.

In addition to the support capital from the Central budget,the Thai Binh and Nam Dinh provinces are committed to arranging the provincial budget capital to deploy according to the approved schedule.

“Recommending the Central budget to support VND 8.000 billion to implement the project,” Mr.Nguyen Khac Than said.

However, in connection with this issue, Minister Nguyen Chi Dung said that the Nam Dinh and Thai Binh provinces, in the previous proposal had committed to worrying more than VND3.000 billion, still keeping the same. The rest, the Central budget will arrange support.

“Investors have committed, they must fulfill the promise,” the Minister told Mr. Vu Van Tien -President of Geleximco Group.

In the opposite direction, Mr. Vu Van Tien also demonstrated his determination to pursue investment in this project. Mr. Vu Van tien also expressed confidence that this project investment will be effective, positive impact on the socio-economic economy of the local and the region.

Appreciating the determination of localities as well as of investors in implementing these two projects, the Minister suggested that the parties should review and complete the investment plan, and be ready for the necessary conditions, including clearance to be able to invest soon, build 2 projects.

According to the plan, Thursday, March 30, Minister Nguyen Chi Dung will report these 2 projects to the Government./.

Translator: Ms.Thao
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