return icon Vietnamnet.vn

North-South Highway project to use public investment

The National Assembly discussed changing to the public investment model for the North-South Highway during a meeting on Tuesday in Ha Noi.

 

 

A section of the North-South Highway in central Quang Ngai Province. — Photo baodautu.vn

 

The Ministry of Transport proposed three sections of the national highway, Vinh Hao-Phan Thiet, Mai Son-National Route 45 and Phan Thiet-Dau Giay, employ a public investment model. The remaining five sections would use the public-private partnership (PPP) model.

Explaining the shift in policy, Minister of Transport Nguyen Van The cited great difficulties to secure the needed investment as banks were tightening their purse for long-term loans in a post-COVID-19 financial market.

In addition, it has been difficult to find interested parties for projects under the build-operate-transfer model as the country still lacks an effective risk-sharing mechanism for investors.

Given the current speed site clearance for the highway was being carried out, the ministry said construction could begin as early as this September. Meanwhile, the PPP model would require a lengthy process to find investors and at least six months to seek capital, making it near impossible to start any work before July 2021.

In a worst-case scenario, should the Government fail to find suitable investors or secure the required investments, the process to shift from PPP to public investment would add another six months and delay the construction into 2022.

Also, using public funds would help local economies and industries, cutting borrowing costs and ensure the project’s uninterrupted progression.

According to a report from the transport ministry, switching to public investment would require an investment of VND100.8 trillion ($4.2 billion) with VND55 trillion already secured.

Vu Hong Thanh, chairman of the NA’s Committee of Economic Affairs, said the committee supports the shift to public investment. The committee, however, insisted the Government produce a report to the NA’s Standing Committee and go through the formal process to change the investment model for the project.

The committee also urged Government agencies and ministries to improve transparency and fairness for investors, to ensure smooth progression and construction meets quality standards.

Minister of Planning and Investment Nguyen Chi Dung stressed the importance of the project, which aims to connect numerous seaports, airports and tourism hubs across the country and provide economic benefits for 60 per cent of the population.

Dung said the project has been discussed and studied carefully by the NA and the Government. The NA gave the green light for the public investment model work on the ground to start as early as August 2020 and the three sections to be completed by the end of next year. — VNS

Transport sector prioritises resources for highway systems

Transport sector prioritises resources for highway systems

Transport Minister Nguyen Van The talks to Viet Nam News Agency about the key tasks his sector needs to address in 2020.

North-South Expressway faces lack of funds

North-South Expressway faces lack of funds

The Ministry of Transport (MOT) said that it has been difficult to mobilize credit capital for the huge eastern North-South Expressway project.

MORE NEWS

VIETNAM BUSINESS NEWS MAY 26

Vietnamese economy to do well in 2022: experts

VIETNAM NEWS HEADLINES MAY 26

Two die in elevator accident at Hanoi building

Will Vietnamese "unicorn" Coin98 be listed on Coinbase?

If this turns out to be true, US investors will have easier access to Coin98. This would open a new development period for Vietnamese Blockchain startups.

VN jumps eight notches in WEF’s Travel & Tourism Development Index

Vietnam’s travel and tourism sector has jumped eight steps despite two years of slowdown caused by the pandemic, according to the World Economic Forum’s (WEF) latest study.

VN real estate bonds shackled by rules

Although experts believe that rating agencies are an indispensable element of a healthy and transparent market, and a significant fundraising channel, real estate developers may suffer hurdles due to stringent bond issuance rules.

Vietnam Int’l Fashion Tour helps promote national culture, tourism

The debut version of the Vietnam International Fashion Tour (VIFT) will get underway in 2022 and 2023 across five cities and provinces, with the aim of popularizing the country’s culture and tourism to the world, said organisers.

Foreigners’ joint ownership of seaports, airports in Khanh Hoa mustn’t be allowed

When discussing the draft resolution on special policies on a trial basis in Khanh Hoa province on May 24, many National Assembly deputies showed concern about the foreign ownership of seaports and airports.

Vietnam-Asia DX Summit 2022 opens in Hanoi

The Viet Nam-Asia Digital Transformation (DX) Summit 2022 opened in Ha Noi yesterday, where experts are examining ways to further utilise the...

Reaching growth target a challenge for this year: NA chair

National Assembly Chairman Vuong Dinh Hue yesterday day expressed his concern that this year’s growth target will be hard to reach.

Hai Phong tops Public Administration Reform Index for first time

Hai Phong and the Ministry of Justice topped the Public Administration Reform Index (PAR Index) of 2021, based on feedback collected from more than 79,000 people about administration reforms in 63 localities and 17 ministries in Vietnam.

Thai retail corporation to sell some 1,000 tonnes of lychees

Thailand's retail corporation Central Retail in Vietnam plans to put on shelves about 1,000 tonnes of lychee this year, with first batches of the fruit from Bac Giang province transported to its supermarkets after a ceremony on May 25.

Facebook ads in Vietnam to be charged 5 percent VAT from June 1

Facebook ads in Vietnam will be subject to a 5 percent value added tax (VAT) beginning from June 1.

Base.vn owner successfully calls for $3.5 million of capital

The investment in True Platform is one of the largest ever seed-round investment deals in a technology startup in Southeast Asia.

Hanoi to spend VND60 billion for civil servants to study for master’s, doctoral degrees

Under a project on improving the quality of its personnel, Hanoi plans to spend VND61 billion to send civil servants and public employees to training courses for master’s and doctoral degrees in Vietnam and overseas.

Japan helps Vietnam with earth observation satellite project

JICA has signed a loan agreement with the Vietnamese Government to provide a Japanese ODA loan worth over 18,870 million yen for the Disaster and Climate Change Countermeasure project using the earth observation satellite.
back_to_top