HCMC – As many as six large investors, including Vingroup, T&T, DIC Corp and Geleximco, have expressed their keen interest in a subproject under the public-private partnership (PPP) of the Ring Road No. 4 project passing through Hanoi City and Hung Yen and Bac Ninh provinces.
Hanoi City has asked the Government to propose the National Assembly decide the investment plan for the Ring Road No. 4 project in the capital area. The prefeasibility report for the project is being drawn up.
According to the Hanoi City government’s latest report, the ring road project will have a length of 112.8 kilometers and require an estimated investment of over VND95.4 trillion, including VND32.7 trillion sourced from the State budget, VND30.34 trillion from the relevant localities’ budgets, nearly VND29.3 trillion from investors and some VND3 trillion from loans.
Thus, the investment sourced from investors will be equal to half of the investment required for the PPP subprojects and 31% of the project’s total investment.
According to the Hanoi government, the project includes three subprojects: site clearance, parallel roads and an expressway, which require an investment of around VND24.2 trillion, VND9.4 trillion and VND61.8 trillion, respectively. The site clearance and parallel road subprojects will use the public investment, while the expressway subproject will be executed under the PPP mode.
Work on the expressway was planned to start in January 2023 for completion in early 2028. The capital poured into the subproject was expected to be recovered in 26 years.
If approved, the project, which requires a large land area of over 4,100 hectares, is expected to be completed in 2028.
The Hanoi government proposed diversifying solutions to mobilize capital for the project, such as through the Government and project and municipal bonds, to prevent the heavy dependence on the State budget and bank loans.