The committee requested the Government to find ways to solve BOT road investment problems which had been pinpointed in a report by the NA Standing Committee.

The Government submitted a plan to build the North-South Expressway in the 2017-2020 period with the cost reduced to over VND118.7 trillion (US$5.23 billion) from VND130.2 trillion proposed in October.

Head of the NA Economic Committee Vu Hong Thanh, delivering a committee report on the North-South Expressway last Friday, asked the Government to explain why some stretches of the expressway are 115 kilometers long while the lengths of others range from 15 to 29 kilometers each, which might not ensure the harmonious construction pace.

Thanh said the Government should guarantee transparency, especially in toll collections and locations of toll stations.

The committee suggested the Government consider the BOT format for three sub-projects which are expected to be constructed with State money, namely Cao Bo-Mai Son, Cam Lo-La Son and My Thuan 2 Bridge.

The 15-kilometer Cao Bo-Mai Son section can be attractive to private investors as an estimated 25,600 automobiles will use it a day, but the Government proposed developing it using the State budget, according to the committee.

Cam Lo-Lam Son section of the expressway is planned to run in parallel with Ho Chi Minh Highway and National Highway 1A which have been built or upgraded under BOT contracts. The committee suggested considering an appropriate investment form for this sub-project to ensure strong public support.

The Government determines toll rates as a basis to choose investors when the sub-projects are put up for tenders. The Economic Committee approved of the project’s investment policy but said how State agencies, enterprises and people would be affected is not yet analyzed critically.

The Government proposed using VND55 trillion from the proceeds from Government bond sales according to the NA’s Resolution 26/2016/QH14 for site clearance and another VND15 trillion for other urgent projects in case of unsuccessful tenders.

NA deputies suggested the NA Standing Committee be authorized to decide capital allocations while others said the Government should clarify reasons for unsuccessful bidding before asking the NA to use the proceeds from Government bond sales.

The expressway, which is expected to get off the ground in 2019 and be complete in 2021, will pass through 32 cities and provinces and four key economic regions, namely the North, the Center, the South and the Mekong Delta, and connect Hanoi and HCMC, the nation’s two biggest cities.

In 2017-2020, 654 kilometers of the expressway would be built with four to eight lanes and divided into 11 sub-projects. Covering a total area of 3,700 hectares, the project may affect around 8,200 households. The cost for resettlement of 2,020 households can amount to VND14.3 trillion.

SGT