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Ministry to report expressway pre-feasibility study to NA

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The Ministry of Transport yesterday said that it has completed the pre-feasibility report of projects to build some stretches of North-South Expressway in 2017-2020 to submit to the National Assembly.

Some stretches of North-South Expressway have been built and put into operation (Photo: VNA)

Some stretches of North-South Expressway have been built and put into operation (Photo: VNA)

According to the report, 654 kilometers of the expressway project will be built during the phase, comprising 11 member projects  with eight under BOT (Build-Operate-Transfer) form and three projects under public investment.
Of the three public investment ones, the project building two lanes Cao Bo-Mai Son stretch is being invested. It needs about a supplementation of about VND1,612 billion to expand to four lanes.
The project building Cam Lo-La Son stretch is forecast to have low transport demand so it is difficult to lure BOT investors.
My Thuan 2 bridge has large total investment capital, therefore BOT investment form will be inefficient and it will be difficult to complete the work synchronously with the highway. Disbursement of government bond capital from 2017-2020 is unfeasible.
According to calculations by the Ministry of Transport, the total investment capital of the 11 projects will approximate VND118,716 billion.
Of these, state capital will be VND55 trillion including VND14,155 billion for site clearance, VND27,694 billion for assisting construction of projects implemented under PPP (Public Private Partnership) form and VND13,151 billion for public investment stretches.
Investors’ capital approximates VND63,716 billion including VND12,743 billion equity capital and VND50,973 billion loans.
Investment preparation time is expected in 2017-2018 and construction is scheduled to start in 2019 and complete in 2021.

By BICH QUYEN – Translated by Hai Mien

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