The Ministry of Transport plans to launch an international bidding for the north-south expressway early next year.

HCMC-Long Thanh-Dau Giay expressway, part of the north-south expressway, has been put into operation

As planned by the ministry, 11 components of the north-south expressway project will be approved this July. Project management units of the ministry will then work with local authorities so that site clearance can start after July.

In the second half of the year, the ministry will work on the project’s technical design and cost estimates, which will need approval in order to send out bidding invitations.

Normally, projects can start to seek bidders after they are approved. But with major projects like the north-south expressway, technical designs and cost estimates must be ready before calling for bidders to ensure transparency and avoid cost overruns like what have happened to many other projects.

Bidders must be financially capable. If failing to arrange capital within three months after the bidding, the investor will no longer be eligible.

Under the bidding rule, if there is only one bidder, investor appointment would apply.

The ministry, however, is proposing a second bidding round in case the first round is not successful. If the bidding takes too much time, the National Assembly Standing Committee will consider either appointing an investor or arranging another round of bidding.

In 2017-2020, some 654 kilometers of the north-south expressway will be built with 11 components. Of these, eight projects will be implemented under the build-operate-transfer (BOT) format and the three others will be funded by the State budget. 

According to the ministry, initially estimated investments in the period are some VND118.7 trillion. State capital is projected to make up around VND55 trillion, including VND14.2 trillion for site clearance, VND27.69 trillion for BOT works and VND13.15 trillion for sections using public funds.

The remaining amount of VND63.72 is expected to come from investor equity and bank loans, with VND12.74 trillion and VND50.97 trillion respectively.

The ministry looks to kick off the project components next year and see them finished in 2021.

SGT