HCMC – All 12 subprojects of the 729-kilometer North-South expressway project will be developed concurrently in the 2021-2025 period, instead of developing nine subprojects first as earlier planned, according to the project’s prefeasibility study.
The Ministry of Transport has submitted the prefeasibility study to the Government for consideration, before it is sent to the National Assembly (NA) for approval prior to November 15. This study has been updated from the previous one, the local media reported.
Specifically, four subprojects will be executed under the public-private partnership (PPP) model, Bai Vot-Ham Nghi, Ham Nghi-Vung Ang, Chi Thanh-Van Phong and Van Phong-Nha Trang.
The remaining subprojects will use public investment, including Vung Ang-Bung, Bung-Van Ninh, Van Ninh-Cam Lo, Quang Ngai-Hoai Nhon, Hoai Nhon-Quy Nhon, Quy Nhon-Chi Thanh, Can Tho-Hau Giang and Hau Giang-Ca Mau.
Thus, the number of subprojects to be developed under the PPP formula was cut from nine to four. Three sections with a total length of 177 kilometers from Vung Ang in Ha Tinh Province to Cam Lo in Quang Tri Province will be built concurrently with other subprojects, instead of being executed later as in the previous plan.
As a result, the estimated investment needed for the project increased from VND124.6 trillion to nearly VND148.5 trillion, including VND131.2 trillion from the State budget and VND17.3 trillion from the private sector.
The Ministry of Transport urged the Government to propose the NA decide the area of forest land needed for the project and assign the Government to decide the conversion of forest land before approving the report.
From its experience in executing PPP subprojects of the North-South expressway project in the 2017-2020 period, the ministry suggested the NA allow the proportion of the State budget in PPP subprojects to be capped at 54%-65% of the total cost of each subproject.
The NA should also assign the Government to consider and decide the changing of the investment mode if the subprojects cannot be executed under the PPP model.