Proposal for the state to contribute 60% of investment capital for the Go Dau - Xa Mat expressway

According to the Tay Ninh Department of Construction, the TAFICO – CDC Joint Venture (Fico Tay Ninh Cement Joint Stock Company and Chuong Duong Joint Stock Company) has just submitted a pre-feasibility study report on the Go Dau – Xa Mat Expressway Construction Investment Project Phase 1 (section from Go Dau to the old Tay Ninh City) under the public-private partnership (PPP) method, Build – Operate – Transfer (BOT) contract. Accordingly, it is proposed that the state capital participate in 60% of the project.

Specifically, the above consortium has proposed 3 scenarios of state capital participating in the project, including: the first scenario, state capital to pay for site clearance and resettlement costs of about more than 2,700 billion VND, accounting for 25%; the second scenario, state capital participating in the project of more than 5,200 billion VND, accounting for 50% and the third scenario, state capital participating in the project of more than 6,300 billion VND, accounting for 60% of the total project investment. The scenarios correspond to payback periods of 42 years, 26 years 11 months and 21 years 5 months, respectively.

In which, the first and second scenarios have the state capital contribution ratio in accordance with current regulations, however, the payback period is too long, not attractive to investors and the ability to mobilize loans from banks is difficult, so the feasibility of the financial plan for the project is not high. For the third scenario, the state capital contribution ratio is 60% in accordance with the provisions of law, in accordance with investment resources, has high feasibility in calling for investment and banks to finance the project. Therefore, the investor proposes the third scenario to be able to implement immediately and be able to invite banks to finance the project.

The consortium of investors proposed that Tay Ninh province assign investors to exploit material mines to serve the implementation of expressway projects and key works to reduce construction costs and take the initiative in material supply, including 3 mines: SHBD 28 with an estimated reserve of about 15.5 million m3 of construction stone; mine 214-C with a reserve of 1.7 million m3 of fill soil and mine 150 with a reserve of nearly 1.5 million m3 of construction sand.

TAFICO – CDC Joint Venture is the unit approved by Tay Ninh Provincial People's Committee as the investor to prepare the pre-feasibility study report for the Go Dau – Xa Mat Expressway project, phase 1. According to the pre-feasibility study report, the project has a starting point intersecting with Ho Chi Minh City – Moc Bai Expressway in Phuoc Thanh Commune, Tay Ninh Province; the end point intersecting with DT.799 Road and DT.781 Road, in Ninh Thanh Ward, Tay Ninh Province. The total length of the route is more than 28 km, with a scale of 4 expressway lanes, a 25.25 m wide roadbed, a continuous emergency lane, a design speed of 120 km/h; and a clearance area of ​​74.5 m. The total estimated investment is 10,266 billion VND, of which the site clearance is more than 2,700 billion VND, the construction cost is about more than 5,900 billion VND, and other related costs are more than 1,600 billion VND.

Mr. Dang Hoang Chuong, Deputy Director of the Department of Construction of Tay Ninh province, said that in the Road Network Planning for the period 2021-2030, with a vision to 2050 approved by the Prime Minister, there is the Go Dau - Xa Mat Expressway (CT.32), about 65km long, 4 lanes, investment progress before 2030. This is the main traffic axis running from North to South of Tay Ninh province, connecting with the Ho Chi Minh City - Moc Bai Expressway, forming a traffic axis connecting Tay Ninh and the international border gates Xa Mat, Tan Nam, the main border gates Chang Riec, Ka Tum and many secondary border gates with the Southern Key Economic Zone and the East - West economic corridor in the South of the Mekong sub-region countries. Therefore, early investment in the Go Dau - Xa Mat expressway serves socio-economic development and ensures national defense and security of the whole country and the Southern Key Economic Zone, especially Tay Ninh province, in the current period.

According to Tay Ninh Department of Construction, the project is being proposed by the investor to be invested in the form of public-private partnership with a total investment of about 10,266 billion VND, of which the state capital participates 60%. However, due to the limited resources of Tay Ninh province, the state budget capital allocated for the medium-term period 2026-2030 can only balance about 3,000 billion VND. Therefore, it is recommended that the Prime Minister and central ministries consider and support additional central budget capital for medium-term public investment in the 2026-2030 period by an additional 2,500 billion VND to invest in the Go Dau - Xa Mat Expressway Project, phase 1.

Source: https://baotintuc.vn/kinh-te/de-xuat-nha-nuoc-gop-60-von-dau-tu-cao-toc-go-dau-xa-mat-20251209152654417.htm