The Ministry of Transport is moving ahead with plans to invest nearly VND395 trillion (some US$18.5 billion) to develop multiple expressways so that the country will have at least 2,500 kilometers of expressway by 2020.

The ministry will mobilize more than VND214 trillion from private investors, according to a report on expressway development by the ministry’s Planning and Investment Department.

The department said 567 kilometers of expressway has been opened to traffic while an extra 457 kilometers is under construction. The expressways now in use include HCMC-Long Thanh-Dau Giay, HCMC-Trung Luong and Noi Bai-Lao Cai.

The expressways to be built towards 2020 are Ninh Binh-Thanh Hoa, Thanh Hoa-Ha Tinh, My Thuan-Can Tho, Cam Lo-La Son, Bac Giang-Lang Son and Noi Bai-Bac Ninh with a total length of 508 kilometers. A number of investors have shown keen interest in these projects, which will be carried out under the build-operate-transfer (BOT) and build-transfer (BT) formats.

The new expressways in the list also include Quang Ngai-Quy Nhon (150 kilometers), Bien Hoa-Phu My-Cai Mep (47 kilometers), Nha Trang-Phan Thiet (200 kilometers), Dau Giay-Tan Phu (74 kilometers) and Halong-Mong Duong (52 kilometers). These roads will be developed until 2020 and 2,308 kilometers will be opened to traffic as envisaged in a scenario of slow growth.

Under the high-growth scenario, 2,689 kilometers of expressway would be completed in that year if work on the expressways of Mong Duong-Mong Cai (148 kilometers), Phu My-Vung Tau (39 kilometers) and Tan Phu-Lien Khuong (125 kilometers), belt road No. 3 in Hanoi (13 kilometers) and belt road No. 3 in HCMC (24 kilometers) progresses well in addition to the five aforementioned expressways.

Total capital needed for the expressway projects under the scenario of high growth is estimated at nearly VND395 trillion, with nearly VND214 trillion to be mobilized from private investors and the rest from the State budget.

According to Minister of Transport Dinh La Thang, it is a must to call for private investments in expressway projects as the State budget and proceeds from Government bond sales cannot cover the huge funding for them.

To realize the target of at least 2,500 kilometers of expressway by 2020, the minister proposed issuing appropriate policies and more incentives to attract the private sector and keep public debt at a safe level.

Domestic capital sources will be prioritized for the expressway projects. In addition, the ministry will seek to transfer the expressways already opened to traffic to investors.

To put expressway construction on fast track, the ministry has permitted private investors to award no-bid contracts. But the ministry will strictly check capital projections.