Proposal to invest 37,653 billion VND in public investment to build 143 km of Quy Nhon expressway

Proposal to invest 37,653 billion VND in public investment to build 143 km of Quy Nhon - Pleiku expressway

The Quy Nhon - Pleiku expressway project with 4 lanes connecting provinces in the Central Highlands and Central Coast regions is proposed to be invested in the form of public investment.

Illustration photo.

The Chairmen of the People's Committees of the two provinces: Binh Dinh and Gia Lai have just co-signed an official dispatch to the Prime Minister on the proposed investment plan for the Quy Nhon - Pleiku Expressway Project.

Accordingly, the Chairman of the People's Committee of the two provinces: Gia Lai and Binh Dinh proposed that the Prime Minister consider and approve the investment of the Quy Nhon - Pleiku expressway in the form of public investment with a complete investment scale of 4 lanes, roadbed width of 24.75 m, length of 143.2 km, total estimated investment of 37,653 billion VND.

The project implementation progress is to prepare investment in 2024-2025, and complete basic construction before 2030.

The leaders of the two provinces proposed to assign the Ministry of Transport as the competent authority to implement the project; the People's Committee of each province shall carry out site clearance work according to administrative boundaries.

The two localities said that the proposed route of the Quy Nhon - Pleiku Expressway Project has basically been agreed upon by the Standing Committees of Binh Dinh and Gia Lai Provincial Party Committees.

Specifically, the Project starts at the intersection of National Highway 19B, Provincial Road 639 and the extended Nhon Hoi Economic Zone axis road in Cat Tien town, Phu Cat district, Binh Dinh province; the end point is at the intersection of Ho Chi Minh road (QL14), in Pleiku city, Gia Lai province. The total length of the route is about 143.2 km, of which the section passing through Binh Dinh province is about 57.6 km; the section passing through Gia Lai province is about 85.6 km.

Previously, in Notice No. 173/TB-VPCP dated June 15, 2022 and Notice No. 59/TB-VPCP dated February 28, 2023, Prime Minister Pham Minh Chinh assigned the Gia Lai Provincial People's Committee to preside over and coordinate with the Ministry of Transport, Binh Dinh Provincial People's Committee, State Capital Investment Corporation (SCIC) and a number of other partners to study the investment plan for the Quy Nhon - Pleiku expressway construction project, in which priority is given to investment plans under the BOT or PPP method.

In order to implement the above direction, the People's Committees of Gia Lai and Binh Dinh provinces have worked with SCIC on investment plans for the Project.

Through calculation and research of the Project investment plan according to the provisions of the PPP Law; the results of research and preliminary calculation of the Project's financial plan show that, with the scenario of the maximum state support capital of 50% of the total investment as prescribed by the PPP Law, the Project does not ensure financial efficiency as prescribed. In case the Project is financially efficient and the capital recovery period with the scenarios of about 25 years, 18 years and 10 years, the state capital needed to participate in support accounts for 76% to 88% of the total investment, so investment in the form of PPP is ineffective and difficult to be feasible.

Currently, to connect Binh Dinh with Gia Lai in particular, the Central Highlands in general and other countries only through National Highway 19. In the context that National Highway 19 still has many difficulties in terms of geometry, the travel time from Binh Dinh to Pleiku City, Gia Lai province is currently about 3.5 - 4 hours.

Therefore, investing in the Quy Nhon - Pleiku expressway according to the approved plan is extremely necessary, in order to enhance regional mobility, contribute to strengthening national defense and security, serve the strategy of building and protecting the Fatherland, serve the socio-economic development of Binh Dinh and Gia Lai provinces in particular, and the provinces in the Central Highlands and Central Coast in general.

The project also helps connect the seaport system of the Central coastal region with the Vietnam - Laos - Cambodia junction and Thailand and Myanmar, shortening the distance and travel time to about 1.5 - 2 hours. It is also an expressway across the East - West axis connecting the North - South expressway that is being formed.

Source: https://baodautu.vn/de-xuat-dau-tu-cong-37653-ty-dong-xay-143-km-cao-toc-quy-nhon---pleiku-d215751.html