The Prime Minister approves increased state funding for the Dong Dang expressway project.

The Prime Minister has approved an increase in state funding for the Dong Dang – Tra Linh expressway project to 9,800 billion VND.

The proportion of state capital participating in the PPP project to invest in and construct the Dong Dang (Lang Son province) – Tra Linh ( Cao Bang province) expressway will increase to 68.76% of the total investment after adjustments.

Construction is underway on tunnel number 2 on the Dong Dang – Tra Linh expressway.

The Prime Minister has just signed Decision No. 1436/QD-TTg adjusting the investment policy for the Dong Dang ( Lang Son province) - Tra Linh (Cao Bang province) expressway construction project under the PPP form, which was approved in Decision No. 20/QD-TTg dated January 16, 2023.

Accordingly, the preliminary adjusted total investment for Phase 1 of the Project is VND 14,114.781 billion; the exact total investment for Phase 2 will be calculated once the start date is determined.

The Prime Minister also decided to adjust the investment capital structure for Phase 1 of the Project. Accordingly, the capital mobilized by the investor (equity capital, loans, and other legal sources of capital) is VND 4,314.781 billion; the state budget contribution is VND 9,800 billion (previously VND 6,580 billion).

State funding will include capital to support the construction of works and infrastructure systems within the project, as well as compensation for land clearance, resettlement support, and support for the construction of temporary structures for the entire project.

Of this, central government budget capital is VND 5,720 billion (including VND 2,500 billion allocated in the medium-term public investment plan of the state budget for the period 2021-2025 and VND 3,220 billion for the period 2026-2030); local government budget capital is VND 4,080 billion.

In addition, the project's implementation timeline has been adjusted, with Phase 1 running from 2020 to 2026; the operational and toll collection period for capital recovery is approximately 22 years and 4 months. Phase 2 will be implemented after 2026.

Investors can use their own capital and capital raised from other legal sources to invest in the project; they will be recouped through closed toll collection along the entire expressway.

The project fees will be collected in accordance with legal regulations and will ensure a balance of interests between the state, users, and investors. The state budget's contribution to the project will be implemented in accordance with Articles 69 and 70 of the PPP Law.

The projected toll rates on the Dong Dang – Tra Linh expressway, using a closed toll collection system, are as follows: 2,000 – 2,860 – 3,520 – 5,710 – 7,710 VND/km for five vehicle categories. Every three years, the competent state agency, in coordination with relevant agencies, will conduct an assessment to review and adjust the road usage fees for the project.

The Prime Minister has authorized the Project to apply the special mechanism under Appendix III (road projects passing through localities with one locality as the managing agency) and Appendix IV (projects applying the policy on exploiting mineral resources for common construction materials) of Resolution No. 106/2023/QH15 dated November 28, 2023, of the National Assembly.

Other provisions remain unchanged according to Decision No. 1212/QD-TTg dated August 10, 2020 and Decision No. 20/QD-TTg dated January 16, 2023 of the Prime Minister.

The Prime Minister assigned the People's Committee of Cao Bang province full responsibility for the information and data in the report proposing the adjustment of the investment policy for the Project; to organize the preparation of the adjusted feasibility study report in accordance with regulations and incorporate the appraisal opinions of the inter-ministerial appraisal council; and to be fully responsible for selecting the investor within its authority and reviewing the investor selection process when the Project's investment policy is adjusted, ensuring strict compliance with the law.

The People's Committee of Cao Bang province is responsible for coordinating with the Ministry of Planning and Investment to review the contents of the contract negotiated and signed between the parties, and to adjust the BOT project contract in accordance with the PPP Law and guiding decrees, ensuring a balance of interests between the State, the investor, and the people.

According to Mr. Ho Minh Hoang, Chairman of Deo Ca Group (the leading enterprise in the consortium of investors), as of mid-November 2024, land clearance for the Dong Dang – Tra Linh expressway project has reached 87.4 km/93.35 km (equivalent to 93.6%), including 41.1/41.55 km (equivalent to 99%) in Cao Bang province and 46.3/51.8 km (equivalent to 90%) in Lang Son province.

With the spirit of "overcoming the sun and rain," "eating quickly, sleeping urgently," and working in "3 shifts and 4 teams," investors, project enterprises, and construction contractors mobilized 1,020 personnel and 357 pieces of machinery and equipment, deploying 36 simultaneous teams to access and organize construction day and night as the land sections were handed over.

Currently, the project has disbursed 1,429 billion VND from various sources, including state budget funds, investor-mobilized capital, and 120 billion VND in credit funds.

The projected total output to be completed in 2024 is 1,010 billion VND, with total disbursement of funds reaching 2,000 billion VND, laying the foundation for the determined goal of opening the route in 2025.

Source: https://baodautu.vn/thu-tuong-duyet-tang-von-nha-nuoc-xay-cao-toc-dong-dang—tra-linh-len-9800-ty-dong-d230532.html