Component Project 3, Ring Road 4 - Capital Region: Investor's Identity Revealed Unexpectedly

It wasn't T&T Group or Vingroup – companies that had been pursuing the project for a long time – but rather a consortium with many members who are not very well-known, that won the "super" Component Project 3 of the Ring Road 4 - Capital Region Investment and Construction Project.

Perspective view of an interchange on the Ring Road 4 - Capital Region.

A significant step forward.

After more than six months of selection, last weekend, the Chairman of the Hanoi People's Committee signed Decision No. 2952/QD-UBND approving the results of the investor selection for Component Project 3 - Investment in the construction of the expressway under the public-private partnership (PPP) method, BOT contract type, belonging to the Investment Project for the construction of Ring Road 4 - Capital Region.

This is an important step forward for the Investment Project to build Ring Road 4 - Capital Region, in the effort to bring the largest road infrastructure project in the Northern region, with a total investment of up to 85,813 billion VND, to be basically completed in 2026 and put into operation from 2027, in accordance with the requirements of the National Assembly .

The winning bidder for Component Project 3 is a consortium comprising CityLand Investment Company Limited, Saigon Sunflower Company Limited, Vietnam Expressway Investment and Development Corporation (VEC), and Horizon Investment Joint Stock Company.

At the time of the bid closing after the extension (9:00 AM, March 25, 2025), the CityLand - Saigon Sunflower - VEC - Horizon consortium was also the only investor to submit a bid. Prominent names with long-standing interest in and pursuit of this project, such as T&T Group and Vingroup , did not submit bids. Vingroup is the investor that proposed the Investment Project for the Construction of Ring Road 4 - Capital Region under the PPP method.

Reportedly, the proposed price from the CityLand - Saigon Sunflower - VEC - Horizon consortium is VND 56,050 billion. Of this, the sub-project using state capital within the PPP project has a total investment of VND 23,861 billion; the remaining VND 32,189.54 billion will be from investors. The toll collection period for Component Project 3 (as proposed by the investor) is 21.36 years.

Notably, the proposed price of the winning consortium of investors, while lower than the total investment for Component Project 3 approved in Decision No. 6479/QD-UBND dated December 20, 2023, of the Hanoi People's Committee (VND 56,293 billion), is 2,746 billion higher than the total investment approved by the Hanoi People's Committee in the updated financial plan (VND 53,302 billion) in Decision No. 712/QD-UBND dated February 14, 2025.

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According to Decision No. 2952, the exact total investment and capital structure of the Project will be determined after negotiations and finalization of the project contract between the contracting agency and the investor.

"The Hanoi Traffic Construction Investment Project Management Board, in coordination with relevant departments and agencies, will negotiate and finalize the contract with the winning bidder and project enterprise to consider and resolve issues related to loan interest rates, contingency costs, implementation schedule, financial plan, etc., ensuring compliance with the tender documents and the approved investment project feasibility study and financial plan," the Hanoi People's Committee leadership directed.

The "status" of the members in the consortium.

It is known that among the four members of the consortium recently selected as investors for Component Project 3 - the most important and largest-scale component project - VEC is the only unit with the best experience and capacity in highway investment.

This 100% state-owned enterprise is currently the investor in 5 expressways stretching from North to South, with a total length of 490 km and a total investment of up to 108,000 billion VND. However, VEC's capital contribution to Component Project 3 is only 15% of the total investment.

The remaining members (including CityLand - the leading member of the consortium) are better known as investors in the real estate sector. Even Saigon Sunflower (a unit in which Construction Corporation No. 1 - CC1 holds a 95.4% stake) has a registered capital of VND 684 billion and was only established at the end of December 2024.

Component Project 3 has a total length of approximately 113.52 km, of which 103.82 km is the main route, invested with a scale of 4 lanes, according to Class A expressway standards, with a design speed of 100 km/hour. Approximately 60 km of the route is invested under the PPP method; the remaining part (including bridges over major rivers such as Hong Ha, Me So, Hoai Thuong, etc.) uses state budget funds and is separated into a separate sub-project within Component Project 3.

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In their technical proposal, the CityLand - Saigon Sunflower - VEC - Horizon consortium proposed a 36-month implementation period for Component Project 3 (construction schedule) (with the commencement of operation and toll collection scheduled for June 2028). This proposed schedule is inconsistent with the timeframe stipulated in the tender documents (completion in 2027).

"Although the consortium of investors has committed to essentially completing Component Project 3 within 30 months, this is a matter that the Hanoi People's Committee needs to report to the Government, which will then report to the National Assembly at the year-end session, regarding the project's implementation status in accordance with the law," a representative from the Hanoi Department of Finance suggested.

Source: https://baodautu.vn/du-an-thanh-phan-3-vanh-dai-4---vung-thu-do-bat-ngo-danh-tinh-nha-dau-tu-d306557.html