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Sunday, July 21, 2024

PPP model for Bien Hoa-Vung Tau Expy canceled

The Saigon Times

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HCMC – Deputy Prime Minister Le Van Thanh has signed a decision canceling the use of the public-private partnership (PPP) model for the first phase of the Bien Hoa-Vung Tay Expressway, as only State capital will be used for the project instead.

The Ministry of Transport was assigned to handle issues relating to the abolition of PPP and prevent possible disputes and lawsuits.

The Bien Hoa-Vung Tau Expressway project should be publicly funded to speed up the implementation process, according to a proposal of the Transport Ministry.

Under the public investment format, the project can be completed in 2025, while work construction cannot be finished before 2026 if PPP is chosen.

Moreover, many problems have emerged in several PPP projects, including the government side’s inability to guarantee the commercial viability of a PPP project and difficult capital mobilization from investors.

The Bien Hoa-Vung Tau expressway’s first phase is expected to get off the ground in 2023, with construction work lasting around two years. With a total length of 53.7 kilometers and 4-6 traffic lanes, the project will require a total of nearly VND18 trillion.

The project will be divided into three sections, of which the first and second sections passing through Dong Nai will be 34.2 kilometers long and cost VND12.65 trillion. The final section in Ba Ria-Vung Tau costs an estimated VND5.19 trillion.

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