Based on the efficiency analysis results, the Quy Nhon - Pleiku expressway is proposed to be funded by public investment instead of through a public-private partnership (PPP) model.
Invest in a complete 4-lane road as planned.
The Ministry of Transport has recently submitted a report to the Government outlining the investment plan for the construction of the Quy Nhon - Pleiku expressway, passing through Gia Lai and Binh Dinh provinces.
According to the proposed plan, the Quy Nhon - Pleiku expressway will be invested in, completed, and put into operation during the period 2026-2030 (Illustrative image).
According to the proposed plan, the project will have a total length of approximately 123km. Of this, the section through Binh Dinh province is about 37km, and the section through Gia Lai province is nearly 86km.
The complete investment scale, according to the approved plan, includes a 4-lane road with a roadbed width of 24.75m and a design speed of 100km/h. However, sections passing through the An Khê and Mang Yang tunnels, which have challenging terrain, will be studied for a 4-lane road with a design speed of 80km/h.
It is projected that by 2030, the total transportation demand on the Gia Lai-Binh Dinh connecting corridor will average approximately 13,000 - 15,000 equivalent vehicles per day. Meanwhile, the existing National Highway 19 can only accommodate about 11,000 - 12,800 equivalent vehicles per day.
Therefore, the early establishment of a high-speed, safe, and high-capacity Quy Nhon - Pleiku expressway is essential, serving as a prerequisite and driving force to exploit the inherent potential and advantages of the Central Highlands region, expand development space, and leverage the advantages of the seaport system in Binh Dinh in particular and the South Central coastal region in general.
The planned route includes the construction of two tunnels: the An Khê Tunnel (approximately 2km long) and the Mang Yang Tunnel (approximately 3km long).
The preliminary total investment for the project is approximately 36,594 billion VND. This includes approximately 3,700 billion VND for land acquisition and compensation; 26,800 billion VND for construction and equipment; over 2,000 billion VND for investment consulting, project management, and other costs; and over 4,000 billion VND for contingency costs.
With a route length of approximately 123km and a planned scale of 4 lanes, the investment cost of the project (excluding land acquisition costs) is approximately 267 billion VND/km.
"Compared to the investment cost per kilometer announced by the Ministry of Construction in Decision No. 816 dated August 22, 2024, the project's investment cost per kilometer is currently about 80 billion VND/km higher."
"The reason is that the project has a large proportion of bridge and tunnel works, especially the two tunnels with a total length of about 5km and an investment cost of about 4,800 billion VND, and the bridge leading to the An Khe and Mang Yang tunnels with a total length of about 8km (expected to have piers taller than 50m) and an investment cost of about 6,200 billion VND," the report stated.
The PPP investment option is unlikely to be feasible.
Regarding the mobilization of investment resources for the project, the Ministry of Transport stated that, in light of practical requirements, the necessity of investment, and legal regulations, the Ministry of Transport has coordinated with the People's Committees of Gia Lai and Binh Dinh provinces to carefully and thoroughly study the investment model of the project under the PPP (Public-Private Partnership) method.
Accordingly, if the state's capital support is capped at 50% of the total investment as stipulated in the PPP Law, the project will not be financially viable as required.
With the land clearance work scenario separated into an independent component project using public investment capital (approximately VND 3,733 billion) and a PPP component project (approximately VND 32,861 billion) applying a state capital ratio not exceeding 70% of the preliminary total investment as stipulated in the amended PPP Law, the amount of state capital needed to support the financial feasibility of the PPP component project is approximately VND 23,673 billion, and the project's toll collection period for capital recovery is approximately 25.1 years.
The total amount of state support for the project (including land clearance costs) is approximately VND 27,406 billion, accounting for about 75% of the preliminary total investment.
For the PPP component project to be financially efficient and have a payback period of approximately 21 years, 18 years, and 16 years, the state capital contribution needed to support the PPP project would be approximately VND 24,929 - VND 27,565 billion (accounting for 74 - 82.5% of the preliminary total PPP project cost); the total state capital contribution to the project (including land acquisition costs) would be approximately VND 28,662 - VND 31,298 billion (accounting for approximately 78.3 - 85.5% of the preliminary total project investment).
"This level of financial support is enormous and ineffective when invested through the PPP method, and the policy is for state capital to act as 'seed capital' to attract socialized capital to participate in infrastructure investment."
"Similar to the Khanh Hoa - Buon Ma Thuot Expressway Project, the proposal by localities to halt investment research under the PPP method and switch to public investment is justified," the Ministry of Transport stated.
According to the Ministry of Transport, the People's Committees of Gia Lai and Binh Dinh provinces are currently proposing to invest in the project using central government budget funds because the provinces' budgets are limited and it is difficult to balance and allocate funds for participation.
However, during the period 2026-2030, the Ministry of Transport will implement several projects with very large investment scales, such as: the high-speed railway project on the North-South axis, the Lao Cai - Hanoi - Hai Phong railway project, etc.
"To ensure the balance of funding, reduce pressure on the central budget, and increase the responsibility of localities that are direct beneficiaries of the project investment, the Ministry of Transport proposes that the People's Committees of Gia Lai and Binh Dinh provinces consider and balance local budget funds for the period 2026-2030 to jointly participate in the project investment, in accordance with the amended and supplemented Law on State Budget recently passed by the 15th National Assembly."
"The balancing of investment capital for the project will be studied in detail during the preparation of the project's pre-feasibility study report," the report stated.
Source: https://www.baogiaothong.vn/vi-sao-kho-dau-tu-ppp-cao-toc-quy-nhon-pleiku-192241226165347148.htm
Comment (0)