return icon Vietnamnet.vn

Gov't has backup plans for North-South Expressway if no investors found: minister

The Government has prepared a backup plan to fund the North-South Expressway (NSE) amid fears that private investors might not be financially capable of carrying out the mega project, the transport minister has said.

Gov't has backup plans for North-South Expressway if no investors found: minister hinh anh 1

Illustrative image (Source: VNA)



MinisterNguyen Van The told Dau Tu (Investment) newspaper on December 27 that hedid not rule out the worst-case scenario in which no investors made it throughthe preliminary bidding round. 

If that was the case, the ministry would immediately report to the Prime Ministerand work with the National Assembly’s Standing Committee (NASC) to decide onthe next move, The said.

“Wewill either carry on with the bidding to select the investors under the PPP (Public-Private Partnership) which will consequently result in a project delay,or ask the NASC to allow us to use the State budget for investment and earnback the money by selling the tolling rights to corporations,” he said.

“Anothersolution planned by the Ministry of Transport is to issue Government bonds orproject bonds to carry out the projects if we can’t find the investors.”

“Thisis a fundamental project of the country so we’re paying extra attention to thestructure quality. The whole project must be completed in line with requiredprocedures and ensured of the quality”.

Thepreliminary bidding rounds for eight sub-projects of the NSE project closedlast month with a total 32 investors and investor partnerships applying. Theproject management boards (PMUs) are scrutinising the capabilities of thepotential investors.

Accordingto Dau Tu, several PMUs had asked to extend the deadline by 15 days – themaximum amount of time permitted by the Law on Bidding.

“Apart from trying to clarify some issues regarding the financial funding agreement, the bidding team has to be extra cautious and carefully assesses the applications due to the special status of the projects,” an official of a PMUs aid on condition of anonymity.

Despite the deadline extension, the ministry will be able to stick to schedule and announce the results of the preliminary bidding in February 2020, said Deputy Transport Minister Nguyen Nhat.

Thesecond and final round of bidding will open the same month to select and thenannounce the final winners in late July, he said.

“If everything goes smoothly, all work to pick the investors can be wrapped up by the end of August 2020,” Nhat added.

Eight sub-projects of the NSE are expected to cost 118.7 trillion VND (5.1 billionUSD), of which 55 trillion VND will be funded by the State while another 63.7trillion VND will be mobilised from investors.

How Vietnamese investors will be able to guarantee such a large amount of money hasbeen the biggest concern so far, especially when outstanding loans of domestic banks are already very high.

Accordingto a State Bank official speaking anonymously, transport projects under the Build-Operate-Transfer (BOT) and Build-Transfer (BT) models over the last few years usually required a large investment which led to a high demand for bank loans, but the payback period was very long.

Thatput pressure on banks trying to balance their credit, he said.

“Sofar the total amount of outstanding loans and credit agreements for BOT and BT projects already touches the banking credit limit for the sector,” he said.

“If banks can’t raise their authorised capital, it will be very difficult to facilitate funding for eight PPP sub-projects of the NSE.” /.VNA

MORE NEWS

Vietnam looks forwards to stronger investment from US, Europe

Vietnam is hoping to attract more investment from the US, Europe and major global enterprises under a recently approved strategy on foreign investment cooperation.

People in HCMC wait in long queues at passport office on July 1

On July 1 afternoon, thousands of people lined up waiting for passports at the Immigration Department on the first day of issuing ordinary passports in the new form.

Three SARS-CoV-2 Omicron variant BA.5 cases detected in Hanoi

Although the number of daily new cases of Covid-19 is decreasing sharply, Hanoi has recorded three infections caused by the BA.5 sub-strain of the Omicron coronavirus variant.

Binh Duong ranks first nationwide by GDP

The southern province of Binh Duong took the lead among Vietnam’s 63 provinces and cities in terms of gross domestic product (GDP) per capita in 2021, according to the latest data released by the General Statistics Office.

Tan Hoang Minh allegedly appropriates VND8 trillion of investors

Tan Hoang Minh Group, a major property developer based in Hanoi, is facing charges of misappropriating over VND8 trillion from investors, said a Ministry of Public Security representative.

Businesses get set for circular economy

Vietnam’s rapid economic growth has caused environmental challenges which have forced the nation to focus on fostering the development of a circular economy with less pollution and reused and recycled products.

Over 60,000 fishing vessels urged to seek safe shelter from storm Chaba

Approximately 60,000 fishing vessels operating at sea have been urgently notified to avoid dangerous areas and seek safe shelter from incoming Storm Chaba, according to the National Steering Committee for Natural Disaster Prevention and Control.

Siem Reap - Da Nang air route resumed

Flight K6 840 departed from Siem Reap of Cambodia at 3:35 pm on July 1 and landed safely at Da Nang International Airport at 5:35pm on the same day.

Embassy: two Vietnamese arrested in Spain for alleged sexual assault

Police on the Spanish island of Mallorca on June 25 said they had arrested two Vietnamese citizens accused of raping a 17-year-old girl and privacy violation, according to the Vietnamese Embassy in Spain.

The key role of top leaders in fighting corruption in Vietnam

Head of the Party Central Committee's Commission for Internal Affairs Phan Dinh Trac has emphasized the important role of top leaders, especially Party Secretary General Nguyen Phu Trong, the people and the media in fighting corruption.

Huge costs for filling Ha Long largest open-cast coal mine

It would cost about VND 1.20 trillion (USD 52.18 million) to fill the Nui Beo open-cast coal mine pit in Ha Long City after closure.

Cutting taxes on petrol products is more urgent than ever

“VND50,000 please. No, just VND30,000."  “VND100,000, please. No, only VND70,000." These were conversations I heard yesterday at a filling station.

28 provinces, 21 central hospitals report lack of drugs, medical equipment

Twenty-eight healthcare departments and 12 out of 21 central hospitals have reported they lack drugs.

HCMC proposes developing huge port in Can Gio

The HCMC government has proposed developing an international container port in the outlying district of Can Gio with an estimated investment of some US$6 billion to aid the local marine economy.

500 tonnes of Vietnamese-labelled rice exported to EU

Loc Troi Group JSC exported nearly 500 tonnes of rice labelled with its own brand name “Com Vietnam Rice” to the EU markets in June.
back_to_top