Postponing the submission of the proposal for the Vietnam-Laos Railway PPP Project worth VND 27,485 billion

The investor consortium proposed to postpone the submission of appraisal and approval documents for the Pre-Feasibility Study Report of the Vung Ang - Tan Ap - Mu Gia Railway Project under the PPP method.

The investor consortium proposed to postpone the submission of appraisal and approval documents for the Pre-Feasibility Study Report of the Vung Ang - Tan Ap - Mu Gia Railway Project under the PPP method.

Illustration photo.

The consortium of Lao Petroleum Trading Company - Deo Ca Group Joint Stock Company has just requested the Ministry of Transport to approve the adjustment of the time for submitting the appraisal and approval documents of the Pre-Feasibility Study Report of the Vung Ang - Tan Ap - Mu Gia Railway PPP Project.

Accordingly, the Lao Petroleum Trading Company - Deo Ca Group Joint Stock Company Joint Stock Company will submit the initial report on November 26, 2024; submit the final report 1 month later and complete the pre-feasibility study report on the basis of the expected State budget capital allocation (if any) by mid-January 2025.

In October 2023, the Ministry of Transport approved the consortium of Lao Petroleum Trading Company - Deo Ca Group Joint Stock Company as the investor proposing the project to prepare a pre-feasibility study report for this railway project under the PPP method.

The consortium must submit the project proposal to the headquarters of the Railway Project Management Board (Ministry of Transport) before October 10, 2024. In case the proposed investor fails to submit the proposal within the above deadline, it is understood that the proposed investor is no longer interested in studying the project.

It is known that the consulting unit has basically completed the site survey and is urgently completing the documents according to regulations.

However, recently, Lao Petroleum Trading Company has been facing difficulties due to the impact of the macro economy and the restructuring of the parent company, so there has not been good coordination for the Investor Consortium to propose the project to complete its tasks.

In addition, the forecasting of transportation demand (goods/passengers) for the project depends on the forecast results of the Vientiane - Thakhek - Mu Gia Railway Project, which currently has no specific results.

For technical technology content, the investor consortium needs a lot of time to select and evaluate as well as refer to different railway engineering technologies from China, Europe, Japan, etc.

In addition, more time is needed to thoroughly study station locations, domestic and international connections to suit relevant planning, as well as study appropriate investment options to ensure harmonious interests among parties involved in the Project implementation.

The Vung Ang - Tan Ap - Mu Gia railway project belongs to the Vientiane - Vung Ang railway line, part of the railway network planning for the period 2021 - 2030, with a vision to 2050, approved under Decision No. 1769/QD-TTg dated October 19, 2021 of the Prime Minister , with an investment roadmap before 2030.

This is an important project, part of the overall Vietnam - Laos Railway Project, one of the priorities of the Governments of Vietnam and Laos, demonstrated in the implementation of high-level agreements between the two Parties and two States on economic development and infrastructure development.

In March 2022, FLC and Lao Petroleum Trading Company also signed a memorandum of understanding to cooperate in developing the Vientiane - Vung Ang railway project connecting Laos - Vietnam.

The Vientiane - Vung Ang railway has a total length of 554.7 km, spanning Laos and Vietnam. The project has a double track scale, 1,435 mm gauge, speed of 150 km/h, total investment of about 149,550 billion VND, implemented under the PPP method.

In particular, the Mu Gia - Tan Ap - Vung Ang section is also proposed to be invested under the PPP method with a total length of about 103 km, including 8 stations (1 main station, 7 intermediate stations) with a total investment of about 27,485 billion VND.

This railway will connect Vientiane to Vung Ang port, connecting with the Laos-China railway, expected to create an extended freight route to northern Laos and southern China.

The terminus of this railway line, Vung Ang port, will play an important role in promoting economic activities of the two countries through trade and maritime transport, towards the markets of Northeast Thailand, China, Korea and Japan.

Source: https://baodautu.vn/lui-thoi-gian-nop-de-xuat-du-an-ppp-duong-sat-viet-lao-tri-gia-27485-ty-dong-d229269.html