Ministry plans to break ground on 18 traffic projects in 2020

The Ministry of Transport planned to break ground on 18 new traffic projects this year with total investment of VND92,384 billion (US$ 3.9 billion). 

Ministry plans to break ground on 18 traffic projects in 2020

Though the Ministry have taken may different measures to ensure the construction speed and quality at the highest level and timely supply of equipment, it have been facing many difficulties.
The Ministry said most of the new projects in the North-South expressway in the eastern part including railway projects of the period 2016-2020 , the terminal T3 project and the Tan Son Nhat Airport project. These projects are significant ones which are expected to improve the country’s traffic infrastructure.
Meanwhile the spend of Hanoi-Ho Chi Minh City railway project was planned at VND7 trillion which has been submitted to seek the government’s approval.
Once the project is carried out, it will not only improve railway capacity but traffic safety-related issued in the railway as it would delete all railway across residential quarters.
Regarding the construction of terminal T3 and Tan Son Nhat Airport as per Deputy Prime Minister Trinh Dinh Dung, the Ministry is waiting for the Ministry of Investment and Planning’s opinion of legal ground on which the Prime Minister will decide to use state budget on it or not.
After being approved, the projects will be finished in 37 months; however, experts doubted its feasibility because many steps must be underway.
Concerning the North-South expressway project in the eastern part, the Ministry of Transport planned to issue bidding document in February to select investors and contractors in May. The Ministry said because project requirements are high, local investors will hardly be chosen.
According to the Department of Public-private partnership Management under the Ministry of Transport, most of major traffic projects have been facing capital; accordingly, it is important to make appropriate mechanism to attract investment.
At present, the Ministry is working with related ministries, and competent state agencies to issue investment law according to the Public-private partnership with the aim to attract private investment.
The Ministry also submitted details of Long Thanh Airport project to the Prime Minister. As per the project details, investors of the airport will be selected in 2020 and then other steps will be carried out. The Ministry will closely liaise with the People’s Committee in the southern province of Dong Nai on site clearance of 1,810 hectares for the first phase in 2021.
Transport Minister Nguyen Van The said the Ministry will publicize lists of projects to call for investments in the form of public-private partnership investment and select investors transparently.
Upon project using state budget, the Minister said that the Ministry will take management mechanism to ensure the projects’ quality and speed. Specifically, in 2020, the Ministry will allocate around VND35 trillion from state budget on basic traffic infrastructure construction.
Delayed projects will be cut or fund for them will be transferred to another projects. Disbursement of these key projects will be better this year.

By Bich Quyen - Translated by Uyen Phuong

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