Construction of the Dau Giay-Phan Thiet Expressway, the first infrastructure project to be implemented under the format of public-private partnership (PPP), is expected to begin in the third quarter of 2015, according to the PPP project management board under the Ministry of Transport.
Construction of the Dau Giay-Phan Thiet Expressway, the first infrastructure project to be implemented under the format of public-private partnership (PPP), is expected to begin in the third quarter of 2015, according to the PPP project management board under the Ministry of Transport.
The project will shorten the time for traveling from HCMC to the south-central region and ease traffic congestion on the National Highway 1A. The expressway will also promote development of industrial parks and tourist sites along the route.
There have been seven investors applying to become the second investor of the project. The ministry will evaluate the bidders basing on international PPP standards.
Le Anh Tuan, head of the management board, said that investor selection steps are conducted seriously via competitive and transparent bidding. The second winning bidder will be announced late 2014 so as for the project to get off the ground in 2015.
In September, the ministry held a pre-selection ceremony to choose the second investor for the project with the participation of 12 investors. However, only seven investors have sent applications to the ministry.
Bitexco Group has been chosen as the first investor of the expressway project and will contribute 60% of the project’s capital. The second investor will contribute the rest.
As Dau Giay-Phan Thiet is the first project to be developed under the PPP format, investors will enjoy a lot of incentives. They will get a grant from the World Bank (WB) and will not have to borrow from commercial banks as WB will provide another loan at an interest rate lower than a commercial one.
The Government will be in charge of site clearance. State-owned capital in the project is estimated at around US$257 million.
The 98.7-kilomter Dau Giay-Phan Thiet Expressway connects HCMC-Long Thanh-Dau Giay Expressway and the National Highway 1A leading to Ba Bau in Binh Thuan Province. The project needs around US$750 million.
(Source:SGT)
