Highway projects under a proposed build-operate-transfer model are scoring special attention from domestic and foreign investors.
Two weeks after being listed by the Ministry of Transport (MoT) among the projects to source investment under the build-operate-transfer (BOT) model, the Thai Nguyen-Cho Moi section of the new national highway 3 has come close to signing with investors.
The ‘almost’ is because the MoT has yet to give its final decision, but the consortium (consisting of Cienco 4 and Tuan Loc JSC) interested in the project have already submitted their proposal to the ministry and has shown to be financially capable and experienced in handling BOT transport projects.
As an extension of the Hanoi-Thai Nguyen highway, the Thai Nguyen-Cho Moi section, with a VND3.15 trillion ($150 million) investment, would be a 40.7km two-lane road.
Once completed, it would help shorten travel time from the northernmost areas of the country to Hanoi and vice versa.
With an investment ratio of around $2.5 million per kilometre, the project is affordable and would allow investors a reasonable timeframe to recoup their capital.
“If things go ahead as planned, the procedures to choose investors will be completed before August 3 to ensure building starts that month,” said the head of the MoT’s PPP Project Management Unit Nguyen Danh Huy.
Already, two highway projects – the Hoa Lac-Hoa Binh and Hanoi-Bac Giang – have reached a consensus between authorities and investors
The MoT’s Transport Engineering Design Incorporated (TEDI) is revising the plan for construction of the Ninh Binh-Thanh Hoa-Bai Vot expressway to scale it down from four lanes to two to attract BOT investors.
The MoT has also reportedly scaled down the scope of several other highway projects in the list of key transport infrastructure projects sourcing foreign direct investment to 2020 to shorten the time it takes investors to recoup capital.
“Investors are eager to involve in these highway projects thanks to their much improved feasibility after they were downscaled,” said Huy.
To ensure progress targets are achieved, Minister of Transport Dinh La Thang asked relevant authorities to hasten finalisation of standards for two lane highways to ensure consistency in application.
Authorities have also been asked to properly assess investors’ capacity and finance.
“The MoT must be sure it does not choose underperforming investors who will delay projects,” Thang said.
By Anh Minh
Đăng ký: VietNam News
