Vietnam’s Eastern North-South expressway set for kick-start next April

The Eastern North-South expressway project includes 11 sub-projects with total length of 654km running through 13 provinces, of which three will be financed by state budget and eight under the PPP and BOT financing.

Vietnam’s Eastern North-South expressway set for kick-start next April

The Eastern North-South expressway sub-projects under the public-private partnership (PPP) format are scheduled for construction in April 2020, according to the Ministry of Transport (MoT).

With the current progress, site clearance process would fulfil 70% of its work volume by that time, stated the MoT in a report submitted to the National Assembly.

The Eastern North-South expressway project includes 11 sub-projects with total length of 654 kilometers running through 13 provinces and cities, of which three will be financed by state budget and eight under the PPP and build-operate-transfer (BOT) financing.

As of present, the MoT has approved project investment plans for the whole 11 projects and is working on technical designs and site clearance, all processes are scheduled to be completed in 2019, informed Vice Minister of Transport Nguyen Nhat at the investment promotion conference for the project held on May 17.

The 11 projects are estimated to cost a total of VND118 trillion (US$5.04 billion), of which VND55 trillion (US$2.35 billion) in state capital will be pumped into three public investment projects, and counterpart funds for the other eight projects.

According to the report, the MoT would open international biddings for the project. So far 24 domestic investors, six from China, two Japanese, one French and one South Korean have expressed interestin bidding.

Specifically, financial estimation and technical designs for two public investment projects are scheduled for completion in early June, and set for construction starting July. The MoT expected similar process for the eight PPP projects would be completed by the end of September.

 

In the preliminary qualification, a maximum of five investors with the highest score would be qualified for the bidding process.

Given Vietnam’s limited experience in international bidding, Deloitte and Ernst & Young were chosen for reviewing the financial structure of the project, drafting the bidding documents and contract forms.

Minister of Transport Nguyen Van the said Vietnam is on track to complete 1,500 kilometers of expressway. “Including the Eastern North – South expressway project, Vietnam would have a total of 2,000 kilometers of expressway by 2020.”

The minister said Vietnam would continue to build an additional 2,000 – 3,000 kilometers of expressway in the 2020 – 2025 period, while a number of research suggested the country would need at least 8,000 kilometers of expressway to support socio-economic development.

For the 2017 – 2020 period, the North-South expressway project is divided into 11 sub-projects, including section from Cao Bo (Nam Dinh province) to Bai Vot (Ha Tinh province); Cam Lo (Quang Tri) to La Son (Hue); Nha Trang (Khanh Hoa) to Dau Giay (Dong Nai); My Thuan 2 bridge (Tien Giang and Vinh Long).

Three public investment projects are Cao Bo (Nam Dinh) – Mai Son (Ninh Binh), Cam Lo (Quang Tri) – La Son (Thua Thien - Hue), and My Thuan 2 bridge (Tien Giang – Vinh Long). Hanoitimes

Ngoc Mai

 
 

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