Ho Chi Minh City Ring Road 4 Project: Choosing the right investment method

On the afternoon of June 9, the Standing Committee of the National Assembly's Economic and Financial Committee held an expanded meeting to examine the investment policy for the Ho Chi Minh City Ring Road 4 project.

Presenting the report, Deputy Minister of Construction Pham Minh Ha said that the project has a starting point at the Toc Tien - Chau Pha intersection (the intersection area with Bien Hoa - Vung Tau expressway and provincial road DT.992) and an end point at the intersection with the North - South axis road at Hiep Phuoc port area (Nha Be district, Ho Chi Minh City).

The project is divided into 2 groups, including 10 component projects. The preliminary total investment for phase 1 is about 120,400 billion VND. The state budget capital is nearly 70,000 billion VND, of which the central budget capital is nearly 29,700 billion VND, the rest is the local budget. The investor's mobilized capital is over 50,600 billion VND. Implementation progress is from 2025 to 2029 (striving to complete the project by the end of 2028).

Regarding the investment method, the Government proposes public investment for component projects: compensation, support, resettlement and construction of service roads and parallel roads. The component projects for investment in the construction of the expressway section use the PPP method (BOT contract type).

The Government proposes 7 specific mechanisms and policies applicable to the project, including allowing the appointment of contractors for consulting, non-consulting, and consulting packages for planning adjustment to serve the project (including resettlement areas); packages for compensation, resettlement support, and construction of infrastructure for resettlement areas to serve site clearance. The project does not have to appraise capital sources and capital balancing capacity according to the provisions of the Law on Public Investment and the Law on Investment under the PPP method.

Agreeing with the need for investment, opinions at the meeting were still concerned about the feasibility of the PPP investment form and the ability to arrange capital. Vice Chairman of the Committee for Culture and Society Ta Van Ha said that it is necessary to clarify the advantages and the possibility of success of the PPP investment method, avoiding the situation of "lining up", then having to propose changes in the investment form, making the National Assembly passive in balancing capital sources. Sharing this concern, delegate Nguyen Thanh Trung, member of the Committee for Economics and Finance, raised the issue of whether, in case PPP capital cannot be mobilized (estimated at over VND 50,600 billion), capital can be arranged to continue implementing in the form of public investment or not?

Responding to this opinion, leaders of the Ministry of Construction and leaders of some localities where the project passes through all said that they have proactively and actively prepared and that some investors have expressed interest in this project.

MR. PHUONG

Source: https://www.sggp.org.vn/du-an-duong-vanh-dai-4-tphcm-lua-chon-phuong-thuc-dau-tu-phu-hop-post798826.html