Dong Nai proposes 2 financial options for Elevated road project along National Highway 51

On August 7, Member of Provincial Party Committee, Vice Chairman of Dong Nai Provincial People's Committee Ho Van Ha chaired a meeting to hear proposals from departments, agencies, and investors regarding the report on the implementation progress of the Elevated road project along National Highway 51 from Vung Tau intersection to the intersection of Vo Nguyen Giap Street and Bien Hoa - Vung Tau Expressway under the Public-Private Partnership (PPP) method.

Member of Provincial Party Committee, Vice Chairman of Dong Nai Provincial People's Committee Ho Van Ha speaks at the meeting. Photo: Pham Tung

According to the Department of Finance, Ho Chi Minh City Technical Infrastructure Investment Joint Stock Company (CII), representative of the proposed consortium of investors for the project, has submitted the pre-feasibility study report for appraisal. The Department of Finance is collecting feedback from relevant units on the project's pre-feasibility study report.

In the project's pre-feasibility study report, the proposed consortium of investors for the project presented 2 financial plans for project investment.

Specifically, plan 1 has a total investment of over 16.1 trillion VND, with state capital participation in the project exceeding 4.8 trillion VND (accounting for over 30% of the total investment), and BOT capital (including loan interest) exceeding 11.2 trillion VND (accounting for nearly 70% of the total investment). With this plan, the project's payback toll collection period lasts 25 years and 3 months.

As for plan 2, the total investment of the project is nearly 16.6 trillion VND. All capital for project execution is BOT capital (including loan interests). With this plan, the project's payback toll collection period is 26 years and 9 months.

After listening to the discussion from representatives of departments, agencies, and the proposed consortium of investors for the project, Member of Provincial Party Committee, Vice Chairman of the Provincial People's Committee Ho Van Ha requested the proposed consortium of investors for the project to provide additional documents to the Department of Construction to clarify the socio-economic efficiency and urban landscape for reporting to the Party Committee of the Provincial People's Committee. The Party Committee of the Provincial People's Committee will report to the Provincial Party Standing Committee before selecting the investors to implement the project. At the same time, the Department of Construction is to research and evaluate the effectiveness of the elevated road construction plan in comparison with the investment plan on building 2 intersections at Vung Tau and Gate 11, then report it to the Provincial People's Committee.

The Department of Agriculture and Environment is to proactively carry out tasks related to compensation and resettlement for the project.

The Elevated road project along National Highway 51, from the Vung Tau intersection to the intersection of Vo Nguyen Giap Street and Bien Hoa - Vung Tau Expressway, proposed by the investor, has a length of approximately 5.5km. The project will involve the investment and construction of an elevated road along National Highway 51 and the intersections at Vung Tau, Gate 11, Vo Nguyen Giap Street with Bien Hoa - Vung Tau Expressway, and the intersection with the backroad 2.

By Pham Tung/Translated by Van Nga - Thu Ha