In a document sent to Prime Minister Pham Minh Chinh and Deputy Prime Minister Tran Hong Ha on May 26, Mr. Tran Ba Duong - Chairman of THACO Group - proposed to invest in the North-South High-Speed Railway Project using his own capital and other legally mobilized capital sources.
The total investment of the project (including compensation, support and resettlement costs) is 1,713,548 billion VND, equivalent to about 67.34 billion USD. THACO proposed to invest in the project with a total investment of about 1,562,000 billion VND, equivalent to about 61.35 billion USD. In which, the site clearance item is an independent project implemented by the State and is not included in the total investment capital of the project.
According to THACO, the capital structure of the enterprise will include the enterprise's contributed capital of 20% of the total investment capital, equivalent to about 12.27 billion USD. This capital is the enterprise's own capital, including equity and other legally mobilized capital through the issuance of shares.
The capital portion corresponding to 80% of the total investment capital (about 49.08 billion USD) is borrowed capital from domestic and foreign credit institutions, guaranteed by the Government and supported with interest within 30 years.
THACO Group wants to participate in investing in the North-South high-speed railway. (Illustration photo)
Regarding the project implementation period, THACO proposed dividing the project into two phases:
Phase 1, complete construction and put into operation of the project within 5 years, with two segments: Ho Chi Minh City - Nha Trang and Hanoi - Ha Tinh. These are two segments with high demand for passenger and cargo transportation.
Phase 2, complete the entire project in the next 2 years, with the remaining segment being Ha Tinh - Nha Trang, due to the steep and complicated terrain, more time is needed to research and find the most effective solution.
"The proposal to complete the project in 7 years and divide the stages of the entire route will allow time for domestic partners to study, learn, cooperate and receive technology transfer to participate in construction, production, installation and operation safely and effectively," THACO stated.
In the proposal, THACO also said that it will apply rail technology, electrification; ensure modernity, international standards on the principle of cooperating with domestic enterprises to receive reasonable technology transfer from the world's leading experienced partners in Europe (Germany, France...); Asia (Japan, Korea,...).
At the same time, the organization will train personnel to master technology in infrastructure construction; production of locomotives and carriages; signal and control systems; management and operation of high-speed railway systems to proactively form the railway industry and through this project develop the country's fundamental industries such as: heavy industry (metallurgy, mechanics); digital industry,...
"In particular, THACO prioritizes coordination and joint ventures, cooperation with domestic enterprises and corporations for items and tasks that can be met domestically," the document stated.
Regarding the business plan, THACO proposed a project operation period of 70 years, in which the investor will propose ticket prices for approval by the State agency on the basis of ensuring the financial plan and payback period for the project according to regulations.
At the same time, the enterprise proposed to enjoy preferential policies according to Resolution 172/2024/QH15 and the 2017 Railway Law. Specifically, the State separates compensation and resettlement support; prioritizes land allocation for urban development according to the TOD (Transit-Oriented Development) model; exempts import tax on machinery and equipment not yet produced domestically; enjoys special and specific incentive mechanisms, and investment incentives at the highest level according to current laws.
THACO affirms that it will master the entire project value chain, from investment, construction to operation and exploitation. The Group commits to cooperate with domestic enterprises in the fields of metallurgy, mechanics, supporting industry, digital industry, etc. to form a modern railway industry.
THACO members such as THACO INDUSTRIES will be responsible for researching and manufacturing locomotives, carriages, and components; THADICO - Dai Quang Minh will deploy infrastructure and manage operations; THISO will develop social infrastructure systems: Commerce, healthcare, and education around stations according to the TOD model.
Source: https://vtcnews.vn/thaco-muon-tham-gia-dau-tu-duong-sat-toc-do-cao-bac-nam-xay-dung-trong-7-nam-ar945472.html
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