Continuous adjustments to the Huu Nghi Border Gate Expressway BOT Project.

Continuous adjustments to the Huu Nghi - Chi Lang border gate expressway BOT project.

This marks the second adjustment to the Huu Nghi - Chi Lang border gate expressway project under the BOT (Build-Operate-Transfer) model in just three months since the Lang Son Provincial People's Committee approved the project on December 4, 2023.

The inability to complete the Huu Nghi - Chi Lang section of the expressway has left the Hanoi - Lang Son expressway as a dead end, halted 30 km from Lang Son City and 45 km from the Huu Nghi border gate.

The failure to complete the Huu Nghi - Chi Lang section of the expressway on schedule has left the Hanoi - Lang Son expressway a dead end, halted 30 km from Lang Son City and 45 km from the Huu Nghi border gate for the past four years.

The Chairman of the People's Committee of Lang Son province has just signed Decision No. 427/QD-UBND approving the adjustment of the Huu Nghi Border Gate - Chi Lang expressway project under the BOT form.

In Decision No. 427, the Chairman of the People's Committee of Lang Son province approved the adjustment of the Huu Nghi Border Gate - Chi Lang expressway project under the BOT form, which had been approved in Decision No. 2014/QD-UBND dated December 4, 2023 and Decision No. 103/QD-UBND dated January 17, 2024.

Specifically, regarding Decision No. 2014, the People's Committee of Lang Son province adjusted the third bullet point of Clause 12, Article 1 as follows: "...- Implementation: The total land use requirement of the project is estimated at approximately 640.28 hectares (approximately 166.47 hectares in Chi Lang district, approximately 297.55 hectares in Cao Loc district, approximately 69.83 hectares in Van Lang district, and approximately 106.43 hectares in Lang Son city); the land area according to the land clearance boundary of the road is approximately 564.47 hectares; the estimated land use requirement for the construction of resettlement areas for the project is approximately 14.1 hectares (resettlement areas as proposed by the locality in accordance with actual needs); the estimated temporary land use requirement for waste disposal sites and material mines of the project is approximately 61.71 hectares."

Amend Clause 3 of Article 2 as follows: “3. The Provincial Investment and Construction Project Management Board, the People's Committees of Cao Loc, Van Lang, Chi Lang districts and the People's Committee of Lang Son City: shall organize the implementation of land clearance (including the relocation of technical infrastructure systems, construction of resettlement areas), compensation, support and resettlement of the project within their management areas in accordance with the provisions of the law on investment under the public-private partnership method, land, public investment, the State Budget Law and current regulations.”

Add point d to clause 2 of Article 2 as follows: d) Manage and settle accounts for state budget funds in accordance with regulations.

Regarding Decision No. 103, the People's Committee of Lang Son province amends the second bullet point of item b, clause 4, Article 1 as follows: "- Management and utilization method: The Provincial Investment and Construction Project Management Board, the People's Committees of Cao Loc, Van Lang, Chi Lang districts and the People's Committee of Lang Son City: organize the implementation of land clearance work in accordance with current regulations."

Approximately 1.5 months ago, in Decision No. 103, the People's Committee of Lang Son province amended Clause 3, Article 1 of Decision No. 2014 regarding the project implementation time.

Specifically, the phased implementation period for the Project is from 2023 to 2026. The People's Committee of Lang Son province also decided to adjust Clause 6, Article 1 of Decision No. 2014 regarding the total investment of the Project, in which the new total investment will be 11,029 billion VND, a reduction of 150 billion VND compared to the previous approval.

The competent State agency for the Huu Nghi - Chi Lang border gate expressway project also proceeded to adjust Clause 7, Article 1 of Decision No. 2014 regarding the capital structure.

Accordingly, the capital that the investor/project enterprise is responsible for arranging (including equity capital, loans, and other sources of funding) is approximately VND 5,529 billion (accounting for 50.13% of the total project investment), of which equity capital is approximately VND 1,106 billion (accounting for 20% of the total capital that the investor/project enterprise is responsible for arranging); loans and other legally mobilized capital amount to approximately VND 4,423 billion (accounting for 80% of the total capital that the investor/project enterprise is responsible for arranging). State capital participating in the PPP project is VND 5,500 billion (accounting for 49.87% of the total investment), of which VND 3,500 billion is from the central budget and VND 2,000 billion is from the provincial budget.

With the aforementioned investment capital structure, the payback period for the Huu Nghi - Chi Lang border gate expressway project is 25 years and 8 months instead of 29 years and 6 months as stipulated in Decision No. 2104.

According to Decision No. 2014, the Huu Nghi - Chi Lang border gate expressway project, implemented under the BOT (Build-Operate-Transfer) model, will be carried out in the districts of Chi Lang, Cao Loc, Van Lang, and Lang Son City, with a total length of approximately 59.87 km. This includes the Huu Nghi - Chi Lang border gate expressway, approximately 43.43 km long, and the connecting route between Tan Thanh and Coc Nam border gates, approximately 16.44 km long.

Specifically, the Huu Nghi - Chi Lang border gate expressway, approximately 43km long, is designed with 6 lanes for motor vehicles and a roadbed width of 32.25m; the connecting route between Tan Thanh and Coc Nam border gates, approximately 17km long, is designed with 4 lanes for motor vehicles and a roadbed width of 22m.

In the phased construction, the Huu Nghi - Chi Lang border gate expressway will be built with 4 lanes and a roadbed width of 17m; the connecting route between Tan Thanh and Coc Nam border gates will be built with 2 lanes and a roadbed width of 14.5m. The preliminary total investment for the phased construction of the Huu Nghi - Chi Lang border gate expressway project under the BOT (Build-Operate-Transfer) model is 11,029 billion VND.

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