Component Project 3, Ring Road 4 - Capital Region: Investor's identity is surprising

Not T&T Group or Vingroup - the enterprises that have been pursuing for a long time, the "super" Component Project 3, belonging to the Investment Project to build Ring Road 4 - Capital Region, belongs to a consortium with many members who are not too "familiar by name or face".

Perspective of an intersection on Ring Road 4 - Capital Region.

Important step forward

After more than 6 months of selection, at the end of last week, the Chairman of the Hanoi People's Committee signed Decision No. 2952/QD-UBND approving the results of the selection of investors to implement Component Project 3 - Investment in the construction of expressways under the public-private partnership (PPP) method, BOT contract type, under 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 an 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, put into operation from 2027, in accordance with the requirements of the National Assembly .

The winning investor of Component Project 3 is a consortium of CityLand Real Estate Investment Company Limited - Saigon Sunflower Company Limited - Vietnam Expressway Corporation (VEC) - Horizon Investment Joint Stock Company (Horizon).

At the time of closing the bid after the extension (9:00 a.m., March 25, 2025), the CityLand - Saigon Sunflower - VEC - Horizon Joint Venture was also the only investor to submit a bid. Famous names that have been interested in and pursuing this project for a long time, such as T&T Group and Vingroup , did not submit a bid. Vingroup is the investor that proposed the Investment Project to build Ring Road 4 - Capital Region under the PPP method.

It is known that the proposed price of the CityLand - Saigon Sunflower - VEC - Horizon Joint Venture is 56,050 billion VND. Of which, the sub-project using state capital in the PPP project has a total investment capital of 23,861 billion VND; the remaining part using investor capital is 32,189.54 billion VND. The time to collect fees to recover capital for Component Project 3 (according to the investor's proposal) is 21.36 years.

It is worth mentioning that, although the proposed price of the winning investor consortium is lower than the total investment of Component Project 3 approved in Decision No. 6479/QD-UBND dated December 20, 2023 of the Hanoi People's Committee (VND 56,293 billion), it is VND 2,746 billion higher than the total investment approved by the Hanoi People's Committee to update the financial plan (VND 53,302 billion) in Decision No. 712/QD-UBND dated February 14, 2025.

According to Decision No. 2952, the total investment and capital structure of the Project will have exact figures after negotiating and finalizing the project contract between the contracting agency and the investor.

“The Hanoi Traffic Construction Investment Project Management Board shall coordinate with relevant departments and branches to negotiate and finalize contracts with the winning investor and project enterprise to review and resolve issues regarding loan interest rates, contingency costs, implementation progress, financial plans, etc., ensuring compliance with the Bidding Documents and the Investment Project Feasibility Study Report, and approved financial plans,” the leader of the Hanoi People's Committee directed.

“Status” of members in the consortium

It is known that among the 4 members of the consortium that have just been selected as investors for Component Project 3 - the important component project with the largest investment capital, VEC is the only unit with the best experience and capacity in investing in expressways.

This 100% state-owned enterprise is currently the investor of 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 participation in 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 contributes 95.4% of the charter capital) with a charter capital of 684 billion VND was newly established at the end of December 2024.

Component 3 has a total length of about 113.52 km, of which 103.82 km of the main route is invested with a scale of 4 lanes, according to the standard of class A expressway, design speed of 100 km/h. The length of the route invested under the PPP method is about 60 km; the remaining part (including large river bridges such as Hong Ha, Me So, Hoai Thuong...) using budget capital is separated into a separate sub-project in Component 3.

In the technical proposal, the CityLand - Saigon Sunflower - VEC - Horizon Joint Venture proposed a 36-month implementation period for Component 3 (construction progress) (the start date for putting the project into operation and collecting fees is June 2028). This proposed progress is not consistent with the time specified in the Bidding Document (completion in 2027).

“Although the investor consortium committed to basically completing Component Project 3 within 30 months, this is the content that the Hanoi People's Committee needs to report to the Government to report to the National Assembly at the year-end session on the project implementation status according to the provisions of law,” a representative of the Hanoi Department of Finance proposed.

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