Clarifying the investment plan for the Lam Dong expressway with a capital of 36,340 billion VND

Illustration photo.

The Ministry of Construction has just sent an official dispatch to the People's Committee of Lam Dong province regarding the investment plan for the Gia Nghia - Bao Loc - Phan Thiet Expressway Construction Investment Project as proposed by the joint venture of investors Trung Nam Group - Indel Corp - Trung Nam E&C.

Specifically, to have a basis for considering and handling the investment proposal for the construction of the Gia Nghia - Bao Loc - Phan Thiet expressway, the Ministry of Construction requested the People's Committee of Lam Dong province to study and give opinions on the content of the project investment proposal.

In particular, Lam Dong Provincial People's Committee needs to focus on clarifying the capacity and experience of the locality in case it is assigned as the competent authority to implement the project investment; the necessity of investment, the objectives of the project to meet the needs of socio -economic development, ensure national interests, national defense and security of the locality to propose adding the expressway to the Road Network Planning for the period 2021-2030, with a vision to 2050 and invest in the route before 2030.

Lam Dong Provincial People's Committee was also asked to evaluate and analyze the advantages of the project when investing under the PPP method compared to other investment methods; preliminary total project investment according to regulations; estimated capital sources and the ability to balance project investment capital sources, including the ability to arrange local resources to participate in project investment.

Previously, the consortium of Trung Nam Construction Investment Joint Stock Company - Trung Nam Group; Indel Investment and Development Joint Stock Company - Indel Corp; Trung Nam Construction and Installation Joint Stock Company - Trung Nam E&C sent a document to the Prime Minister proposing to invest in the Gia Nghia - Bao Loc - Phan Thiet expressway under the PPP method.

According to the proposal of the investor consortium led by Trung Nam Group, the Gia Nghia - Bao Loc - Phan Thiet expressway has a length of about 140.6 km, passing through the communes/wards of Binh Thuan, Ham Thanh, Dong Giang, La Da, Hoa Bac, Hoa Ninh, Bao Lam 1, Bao Lam 2, Bao Lam 4, Quang Khe, Bac Gia Nghia and Truong Xuan (Lam Dong province).

The starting point of the Project connects with Vinh Hao - Phan Thiet Expressway in Binh Thuan Ward (old Ham Thuan Bac District), with a branch connecting to Phan Thiet center; the end point intersects with Buon Ma Thuot - Gia Nghia Expressway (according to the planning), connecting Gia Nghia center via National Highway 14.

The expressway is designed for a speed of 100 - 120 km/h depending on terrain conditions, with a complete 4-lane scale, a 24.75 m wide roadbed; the total preliminary investment of the Project is about 36,340 billion VND.

Through research and analysis of economic and technical factors, the Central Highlands region's economy still faces many difficulties and the ability to recover capital is low, the investor consortium proposed to use the State budget to support the Project at a rate of 70% (equivalent to about 25,438 billion VND) and the investor's mobilized capital (equity, loans and other legal capital sources) at a rate of 30% (equivalent to about 10,902 billion VND).

Source: https://baodautu.vn/lam-ro-phuong-an-dau-tu-tuyen-cao-toc-xuyen-lam-dong-von-36340-ty-dong-d443119.html