Consultation on expanding the Ho Chi Minh City - Trung Luong expressway.

Consultation on expanding the Ho Chi Minh City - Trung Luong - My Thuan expressway, valued at 33,910 billion VND.

This project aims to expand the entire 91 km Ho Chi Minh City - Trung Luong - My Thuan expressway, including the Cho Dem interchange, according to the planned scale, during the period of 2024 - 2028.

A section of the Trung Luong - My Thuan expressway has 4 limited lanes.

The Ministry of Transport has recently sent a document to the People's Committee of Ho Chi Minh City and the provinces of Long An and Tien Giang requesting their input on the pre-feasibility study report for the Ho Chi Minh City - Trung Luong - My Thuan expressway expansion project.

According to the Ministry of Transport , the Ho Chi Minh City - Trung Luong - My Thuan expressway is a radial axis, the southern gateway of Ho Chi Minh City, connecting the Mekong Delta region with Ho Chi Minh City, and plays an important role in contributing to the socio-economic development of localities in the region.

Recently, traffic volume on the route has increased significantly, exceeding the road's service capacity, frequently causing congestion and posing a risk to traffic safety, especially on weekends, holidays, and Tet (Lunar New Year).

To meet transportation needs and serve socio-economic development, and in accordance with the Prime Minister's directive on researching and implementing the Ho Chi Minh City - Trung Luong - My Thuan Expressway expansion project using the PPP method, the Ministry of Transport has assigned the consortium of Deo Ca Group - Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) - Tasco Joint Stock Company as the investor to prepare the pre-feasibility study report for the project (investor proposal) for submission to competent authorities for approval.

To date, the proposed consortium of investors has completed the Pre-feasibility Study Report for the Project.

In order to have a basis for appraising and approving the investment policy of the Project, in accordance with the socio-economic development orientation of the localities, the Ministry of Transport requests the People's Committee of Ho Chi Minh City, the People's Committees of Long An and Tien Giang provinces to study and provide feedback on the Project's pre-feasibility study report.

The consultation process covered the following aspects: alignment with the local socio-economic development strategy and plans, and related planning; socio-economic effectiveness, national defense, security, and sustainable development of the locality; the necessity of investment and its suitability in terms of investment form, objectives, location, scope, planned scale, and other relevant aspects.

The Ministry of Transport requires investors to propose projects, and Project Management Board 7 is responsible for submitting complete documentation and coordinating with relevant agencies and units of localities during the implementation process.

According to the proposal from the consortium led by Deo Ca Group, the Ho Chi Minh City – Trung Luong – My Thuan expressway expansion project will invest in expanding the entire 91 km Ho Chi Minh City - Trung Luong - My Thuan expressway, including the Cho Dem interchange, during the period of 2024 - 2028 using the PPP method, BOT contract, without any participation from the state budget.

The Ho Chi Minh City - Trung Luong expressway section starts at Km10+000 and the Cho Dem interchange; and ends at Km49+620 before the Than Cuu Nghia interchange. The total length of this section is approximately 39.62 km, passing through Ho Chi Minh City for about 1.2 km, Long An province for about 28.5 km, and Tien Giang province for about 9.92 km.

This section of the route is proposed to be expanded to 8 lanes and 2 continuous emergency stopping lanes, with a roadbed width of 41 m. Since land clearance for the 8-lane project was completed in Phase 1, the Ho Chi Minh City – Trung Luong – My Thuan Expressway Expansion Project only requires additional land clearance in certain sections to accommodate necessary additional infrastructure.

For the Trung Luong – My Thuan expressway section, Project Management Board 7 proposed the starting point at Km49+620 before the Than Cuu Nghia intersection; and the end point at Km101+126 at the intersection with National Highway 30. The total length of the section is approximately 51.506 km, passing through Cai Lay town and the districts of Cai Lay, Chau Thanh, Cai Be, and Tan Phuoc (all in Tien Giang province).

Because Phase 1 already involved the construction of 4 lanes and intermittent emergency stopping lanes, with a roadbed width of 17 m, and land clearance was carried out for a complete 6-lane project, the Ho Chi Minh City – Trung Luong – My Thuan Expressway Expansion Project will expand to 6 lanes and 2 continuous emergency stopping lanes, with a roadbed width of 32.25 m, requiring only additional land clearance in certain sections to accommodate necessary additional infrastructure.

If both rest stops and intelligent traffic control and management systems are invested in simultaneously, the Ho Chi Minh City – Trung Luong – My Thuan expressway expansion project will have a total investment, including interest during the construction period, of VND 33,910 billion.

Of this, equity capital accounts for VND 5,087 billion (15% of the total investment), while borrowed capital and other legally mobilized funds amount to VND 28,823 billion (85% of the total investment).

With an estimated interest rate of 10.75% per year on capital raised during the construction and operation phases; a return on equity for investors of 13.88% per year; and an initial road usage fee (from 2027-2028) of 1,300 VND/km/vehicle type 1 and 2,100 VND/km/vehicle type 1 in the subsequent period, with a 12% increase every 3 years, the project will have a payback period of 18 years and 3 months.

Source: https://baodautu.vn/tham-van-mo-rong-cao-toc-tp-hcm---trung-luong---my-thuan-tri-gia-33910-ty-dong-d227817.html