5 BOT projects to expand Ho Chi Minh City's gateways: 60,000 billion VND, experts and investors want them to be completed quickly.

Of the five BOT projects at the gateways to Ho Chi Minh City under Resolution 98, the consulting units proposed three projects to be elevated and the remaining two to be at ground level.

National Highway 13, the section connecting Ho Chi Minh City and Binh Duong province - Photo: CHAU TUAN

On the afternoon of November 14th, the Ho Chi Minh City Department of Transportation organized a consultation conference on the pre-feasibility study report for 5 BOT gateway projects under Resolution 98. The conference was attended by numerous investors and transportation construction companies such as Ho Chi Minh City Infrastructure Investment Joint Stock Company, Deo Ca Group, Son Hai Group, etc.

According to Mr. Tran Quang Lam, Director of the Ho Chi Minh City Department of Transport, the conference aims to gather opinions from experts and investors as a basis for finalizing the pre-feasibility study report and submitting it to competent authorities in the fourth quarter of 2024. According to the plan, the projects will be put out to tender to select investors in the third quarter of 2025.

3 BOT projects with elevated roads

At the conference, representatives from the consulting firm stated that the project to expand National Highway 13 (from Binh Trieu Bridge to the border of Binh Duong province) was proposed with two options: a low-lying section and an elevated section. After research, the firm proposed the elevated section using viaducts. The total investment is nearly 20,000 billion VND.

For the project to expand National Highway 1 (from Kinh Duong Vuong Street to the border of Long An province), the consulting unit proposed choosing a low-lying route option due to its simplicity in construction, and the existing road will still ensure smooth traffic flow during the construction process. The total investment is approximately 15,897 billion VND.

The project to build National Highway 22 (from An Suong intersection to Ring Road 3) is approximately 8.7km long, with a total investment of 8,810 billion VND (including loan interest). The consulting unit proposed choosing the low-lying option by widening the road surface and building overpasses at intersections, as this is the lowest cost among the options.

The North-South arterial road project (section from Nguyen Van Linh intersection to Ben Luc - Long Thanh expressway) has a total length of 8.6km and a total investment of over 8,483 billion VND. The consulting unit proposed choosing an elevated viaduct with an offset centerline. The reason for not choosing a low-level route is that it would intersect with many traffic flows, require the construction of many interchanges, and need to ensure traffic flow for the Metro Line 4 project running along the route.

The Binh Tien bridge and road BOT project (from Pham Van Chi Street to Nguyen Van Linh Street), with a total length of 3.66km and a total investment of over 6,863 billion VND, is also proposed to be built on elevated structures.

Investors are worried about land clearance.

Mr. Tran Quang Lam, Director of the Ho Chi Minh City Department of Transportation, speaks at the conference - Photo: D.P.

According to the consulting firm, the principle for selecting toll fees for the 5 BOT projects is based on the actual distance traveled, with fee exemptions and reductions for residents living along the project route. Toll fees will be flexible, with higher fees for elevated roads... The toll collection period for these projects is 15-20 years.

From an investor's perspective, Mr. Le Quynh Mai, Deputy General Director of Deo Ca Group, suggested that a unified soft criterion is needed: a capital recovery period of approximately 20 years for projects, and that the project lifespan should not be longer. Secondly, for transparency and fairness, projects should collect tolls based on distance (km) instead of per trip.

"Furthermore, land acquisition costs for most projects are very high, exceeding 50% of the total investment. Therefore, it is necessary to consider separating land acquisition into a separate project to be implemented by a state agency. Because land acquisition is always a difficult issue, it is hard to attract investors," Mr. Mai said.

Sharing the same view on separating compensation for land clearance, Mr. Le Quoc Binh, General Director of Ho Chi Minh City Infrastructure Investment Joint Stock Company, added: In reality, many BOT projects have faced long-term land clearance issues, causing significant losses to investors. Therefore, the bidding documents should stipulate that 90% of the land must be cleared before the investor can begin construction.

"In my opinion, there needs to be specific sanctions when parties fail to fulfill their obligations. Currently, the PPP Law does not clearly stipulate who should be held responsible for the resulting costs if the State fails to fulfill its commitments to the investor…," Mr. Binh commented.

Responding to investors, Mr. Tran Quang Lam stated that all five gateway BOT projects have had their land acquisition separated into individual projects. After the projects are separated, the city will carry out the land acquisition.

Speaking at the conference, Dr. Tran Du Lich suggested shortening the timeline and starting construction early for 1-2 projects among the 5 BOT gateway projects. He also proposed that the city could consider allowing the winning bidder to issue bonds to secure funding for the project without having to borrow from banks.

Mr. Nguyen Viet Hai, Chairman of Son Hai Group, also offered suggestions to encourage investors to develop initiatives and innovate technology. Mr. Hai questioned the extent to which investors have the right to change the technical design during project implementation. What if an investor proposes a cheaper solution? To ensure faster progress, it is necessary to allow investors to make their own decisions.

Source: https://tuoitre.vn/5-du-an-bot-mo-rong-cua-ngo-tp-hcm-60-000-ti-dong-chuyen-gia-nha-dau-tu-muon-lam-nhanh-20241114164408908.htm