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Deputy PM: Competitive bidding a must for North-South Expressway
Friday,  Jan 12, 2018,21:25 (GMT+7)

Deputy PM: Competitive bidding a must for North-South Expressway

HCMC – Open and transparenttenders must be invited for the North-South Expressway project, so awarding no-bid contracts is prohibited, said Deputy Prime Minister Trinh Dinh Dung at a meeting on January 11, the Government news website reports.

Some expressway sections totaling around 654 kilometers will be built from now until2020, according to a National Assembly resolution issued last November.

The project will require more than VND118.7 trillion (US$5.2 billion), including VND55 trillion in State capital from the mid-term investment fund for big-ticket projects of national importance, and VND63.7 trillion from the private sector.

Investors would be required to apply advanced technologies to the project in order to ensure its safety, good quality and effectiveness.

At the meeting on January 11, the Transport Ministry delivered a report on implementing the resolution, and sought the Government’s permission to some proposals before developing some expressway sections.

The ministry suggested that there are solutions to help remove obstacles in the process of executing the project, and to smoothen out the build-operate-transfer (BOT) investment format.There have emergedsome complex issues regarding public-private partnership (PPP) investment in terms of mechanisms and policies for selecting investors, managing and implementing projects; and capital mobilization from credit institutions at home and abroad.

For example, foreign capital mobilization requires the Government’s guarantees, but a legal framework for the matter has yet to exist.

Deputy PM Dung said the National Assembly has asked the Government to map out a mechanism for mobilizing resources to develop the project, so relevant ministries and agencies should give feedback on the resolution.

TheGovernment Office and the Transport Ministry will work together to draw up a draft for implementing the NA resolution. The document will be submitted to the Government for consideration during its upcoming session.

Instead of appointing contractors, the Government leader stressed that open and transparent tenders must be held to choose capable investors for the large-scale project to ensure economic effectiveness, and avoid wastefulness.

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