Ministry of Transport proposes to review investment rate of Cam Lo Expressway Project

Ministry of Transport proposes to review investment rate of Cam Lo - Lao Bao Expressway Project

The PPP project of Cam Lo - Lao Bao expressway, Quang Tri province, is 59 km long and is expected to be invested in a scale of 4 lanes, with a roadbed width of 24.75 m and a design speed of 100 km/h.

Illustration photo.

The Ministry of Transport has just sent an official dispatch to the Ministry of Planning and Investment to give opinions on the PPP project of the Cam Lo - Lao Bao expressway as proposed by the People's Committee of Quang Tri province.

According to the Ministry of Transport, the Cam Lo - Lao Bao Expressway Project is located on the route of the East - West Development Corridor, connecting the national vertical axis of the North - South Eastern Expressway, My Thuy Port with Lao Bao and Laos border gates; aiming to gradually complete the synchronous and modern regional transport infrastructure network, with convenient intra-regional and inter-regional connections as identified in Resolution No. 26-NQ/TW dated November 3, 2022 of the Politburo and Resolution No. 168/NQ-CP dated December 29, 2022 of the Government on the Government's Action Program to implement Resolution No. 26-NQ/TW.

“The early exploitation will promote trade development, international trade, tourism development, support sustainable forestry development associated with the community and ecotourism, and ensure national security and defense for the locality and the North Central region,” the leader of the Ministry of Transport assessed.

In addition, according to the Road Network Planning for the period 2021 - 2030, with a vision to 2050, the Cam Lo - Lao Bao expressway has its starting point in Dong Ha city, its ending point at Lao Bao border gate, Quang Tri province, with a length of 70 km, a scale of 4 lanes, and an investment progress before 2030.

In Decision No. 1737/QD-TTg dated December 29, 2023 on approving the planning of Quang Tri province for the period 2021 - 2030, with a vision to 2050, the Prime Minister decided to adjust the route and move the starting point of the expressway to Trieu Phong district, the route length is 59.5 km.

Currently, the Ministry of Transport is adjusting the road network planning to match the national master plan, including the planned adjustment of the Cam Lo - Lao Bao expressway.

"We request the People's Committee of Quang Tri province to direct relevant agencies to closely coordinate with the Vietnam Road Administration (the agency that prepares and adjusts the road network planning) to study and update the planning content of the Cam Lo - Lao Bao expressway to ensure compliance with legal regulations on planning," the leader of the Ministry of Transport stated.

According to the Investment Proposal Report, the preliminary total investment of the Project is determined on the basis of: preliminary main construction volume (length of expressway, tunnel, bridge construction area, number of intersections, exploitation and service works...) and investment capital, construction capital of some works with similar nature (such as the North-South expressway in the East, Khanh Hoa - Buon Me Thuot section, Cam Lam - Vinh Hao section...) and compared with the investment capital of the Ministry of Construction to calculate the preliminary total investment of the Project is reasonable.

The Ministry of Transport recommends that, as a competent State agency, the People's Committee of Quang Tri province should direct relevant agencies to carefully inspect and review the route to ensure compliance with Decision No. 1737/QD-TTg dated December 29, 2023, ensuring technical standards, convenience in construction and exploitation, and minimizing encroachment on natural forests and special-use forests.

Because many sections of the Project pass through mountainous areas, the People's Committee of Quang Tri province needs to review and calculate reinforcement solutions to ensure the stability of the project; carefully calculate the frequency and hydrological flow to determine the longitudinal profile, scale and aperture of the drainage project to ensure suitability.

Regarding the intersections, within the 56 km route, the People's Committee of Quang Tri province plans to arrange 4 interchanges and 1 level intersection at the end of the route. The Ministry of Transport said that the arrangement of interchanges as above is basically in accordance with the regulations on the distance between intersections. However, to ensure investment efficiency and financial efficiency of the project, the consulting unit is requested to carefully calculate the transportation demand to have a solution to diversify the investment for some intersections (if any) when the transportation demand in the first phase is not high.

Regarding the preliminary total investment, the Ministry of Transport proposed to review and select investment capital for expressway projects with similar characteristics in terms of terrain, geology, and construction organization measures; tunnel projects need to select tunnels in approved expressway projects with corresponding tunnel lengths for comparison.

Previously, in March 2024, the People's Committee of Quang Tri province sent Document No. 18/TTr-UBND to the Prime Minister requesting the application of special mechanisms and policies and budget support to participate in the Cam Lo - Lao Bao Expressway PPP Project.

Specifically, the project is 56 km long, starting at the intersection with Cam Lo - La Son Expressway and ending at Lao Bao International Border Gate; passing through 4 districts: Trieu Phong, Cam Lo, Dakrong, Huong Hoa (Quang Tri province), will be invested in a scale of 4 lanes, with a roadbed width of 24.75 m, design speed of 100 km/h.

Mr. Vo Van Hung, Chairman of the People's Committee of Quang Tri province, said that the above investment scale is in accordance with the planning of the Cam Lo - Lao Bao expressway (CT.19) approved by the Prime Minister in Decision No. 1454/QD-TTg dated September 1, 2021 approving the Road Network Planning for the period 2021 - 2030, with a vision to 2050.

With the above investment scale, the total investment of the Project (excluding interest during construction) is 13,726 billion VND, including site clearance costs of 676 billion VND; construction costs of 10,643 billion VND; equipment costs of 222 billion VND; project management, consulting and other costs of 1,086 billion VND; contingency costs of 1,099 billion VND.

In Document No. 18/TTr-UBND, the People's Committee of Quang Tri province proposed that the Prime Minister consider submitting to the National Assembly permission to apply special mechanisms and policies to the Cam Lo - Lao Bao Expressway PPP Project, with the state capital participation rate up to 70% of the total investment.

This is the special mechanism allowed by the National Assembly to be applied to the Thai Binh Province Coastal Road Construction Investment Project and the Dong Dang - Tra Linh Expressway Construction Investment Project in Resolution No. 106/2023/QH15 dated November 28, 2023.

According to the leader of the People's Committee of Quang Tri province, because the Project passes through Huong Hoa, Dakrong, Cam Lo, Trieu Phong districts with particularly difficult conditions and the forecast of traffic volume in the initial phase is not high, if it is necessary to apply Clause 2, Article 69, Law on Investment under the public-private partnership method (the proportion of state capital participating in the project does not exceed 50% of the total investment), the financial plan of the Project will be unfeasible, prolonging the payback period, making it difficult to mobilize capital from investors and credit institutions.

Quang Tri Provincial People's Committee calculated that, in case the competent authority approves the above proposal, the state budget capital participating in the Project will increase to VND 9,608 billion (accounting for 70%); the capital mobilized by investors (owners, loans and other capital) is VND 4,581 billion (accounting for 30%).

“This plan ensures financial feasibility, shortens the payback period for the project to 28.7 years, thereby facilitating the attraction of non-state budget investment capital,” the leader of the Quang Tri Provincial People's Committee calculated.

Source: https://baodautu.vn/bo-giao-thong-van-tai-de-nghi-ra-soat-suat-dau-tu-du-an-cao-toc-cam-lo—lao-bao-d220548.html