Submit to the Prime Minister to invest more than 7,600 billion VND to expand Yen Bai - Lao Cai expressway

Accordingly, the Ministry of Construction proposed that the Government leaders approve the policy of allocating capital to increase central budget revenue in 2024 to participate in investing in expanding the Yen Bai - Lao Cai expressway.

At the same time, the Ministry also proposed that the Government consider assigning the Vietnam Expressway Corporation (VEC) to invest in the expressway.

The Ministry of Construction also proposed that the Government assign the Ministry of Finance to direct VEC to review and calculate specific financial plans in case VEC mobilizes capital to invest in expanding the Noi Bai - Lao Cai expressway.

In particular, the investment plan must ensure the ability to mobilize capital to invest in the above-mentioned expressways; the ability to repay the Government's ODA capital, the feasibility of the financial plan of the project in particular and the 5 projects currently managed and operated by VEC; and the conformity with the plan to increase charter capital for the period 2024-2026 approved by competent authorities.

Proposal to expand Yen Bai - Lao Cai expressway. Photo: Ngoc Han

VEC is required to be responsible to the Prime Minister and the Ministry of Finance for the enterprise's investment and production business plan; the progress and quality of projects assigned for investment and construction; and to be responsible for developing a specific plan to implement the investment project to expand the Yen Bai - Lao Cai section of the Noi Bai - Lao Cai expressway to start construction in 2025.

“The Ministry of Construction will closely coordinate with the Ministry of Finance and VEC in the process of implementing the investment project to expand the Noi Bai – Lao Cai expressway, Yen Bai – Lao Cai section,” the Ministry of Construction’s official dispatch stated.

Previously, VEC had sent a document reporting to the Ministry of Construction on the investment plan to expand the Noi Bai - Lao Cai expressway, Yen Bai - Lao Cai section.

Specifically, the Yen Bai - Lao Cai section previously had a scale of 2 lanes from Km123+080 - Km244+155, about 121 km long. During the investment and exploitation process, some sections were expanded to a scale of 4 lanes, about 40 km long. Thus, the remaining scope of research and investment to expand the Yen Bai - Lao Cai expressway section is about 83 km.

According to VEC's report, the project to expand the Noi Bai - Lao Cai expressway from Yen Bai to Lao Cai to a complete 4-lane scale has a total investment of about 7,668 billion VND. Of which, the State budget capital is 3,055 billion VND (about 40% of the total investment), and VEC mobilized capital is 4,613 billion VND (about 60% of the total investment).

Of the VND 4,613 billion mobilized by VEC, VND 777 billion is VEC's own capital and VND 3,214 billion is mobilized by VEC. The time to collect fees to recover capital for the capital mobilized by VEC is about 20 years (expected to end in 2045).

VEC affirmed that the project investment plan has calculated the cumulative after-tax cash flow of the project and the cumulative after-tax cash flow of the 5 projects managed by VEC is always positive.

VEC ensures the ability to repay the Government's ODA capital and the ability to invest in upgrading and expanding the Noi Bai - Lao Cai expressway expansion project, Yen Bai - Lao Cai section.

Noi Bai - Lao Cai Expressway, 245 km long, invested by VEC, exploited to collect tolls to recover capital since 2014. Of which: Noi Bai - Yen Bai section, scale of 4 lanes; Yen Bai - Lao Cai section, scale of 2 lanes (cleared land, roadbed construction to scale of 4 lanes). Toll collection period is 27 years (ending in 2041).

Because the Noi Bai - Lao Cai route is a radial expressway, which has been in operation for over 10 years, the Yen Bai - Lao Cai route is currently operating with a scale of 2 lanes, without a median strip, so traffic capacity is limited. When the number of vehicles increases, there will be potential traffic safety risks for people and vehicles traveling on the route, especially on weekends, holidays and Tet.

According to vietnamnet.vn

Source: https://baolaocai.vn/trinh-thu-tuong-dau-tu-hon-7600-ty-dong-mo-rong-cao-toc-yen-bai-lao-cai-post399847.html