Some big corporations of Vietnam plan to establish a company to build the 54.9km Cat Lai - Long Thanh - Dau Giay highway to compete with the Vietnam Highway Investment and Development Corporation.
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Some big corporations of
The Bank for Investment and Development of Vietnam (BIDV) on April 5 announced the Cat Lai - Long Thanh - Dau Giay highway project. This is the project of an alliance of 11 local companies, which may be called the
This company has the participation of big names in Vietnam such as the Vietnam Oil and Gas Corporation (PetroVietnam), Bitexco, Idico Urban and Industrial Zone Investment and Development Corporation, the Vietnam Shipbuilding Industry Corporation (Vinashin), the Vietnam Post and Telecommunication Group (VNPT), the Song Da Corporation, the Vietnam Coal and Mining Group, the Ha Long Investment and Production Company and BIDV.
The representative of PetroVietnam will be the chairman of the board of directors of the above company, which will have VND1,800 billion (US$112.5 million) of capital, equivalent to 20% of the total capital needed for of the highway project.
The government has approved the feasibility report of the project and the Prime Minister is considering the detailed technical report.
This alliance has become a rival of the Vietnam Highway Investment and Development Corporation in seeking the post of the investor of this highway project, which will link
BIDV General Director Tran Bac Ha said that if the project of the Vietnam Highway Investment and Development Corporation needs a total investment of VND9,800 billion (US$612.5 million), over 53% of which comes from foreign loans and the remaining from the state budget and bond issuance and up to 25 years for capital refund, the project of the HCM City - Long Thanh - Dau Giay Highway Joint Stock Company has many advantages.
The total capital for the first phase of the new company’s project is over VND9,890 billion (US$618.125 million), including over VND1,000 billion (US$62.5 million) for site clearance and over VND6,800 billion ($425 million) for construction.
Mr Bac Ha emphasized that the whole capital is equity capital and capital raised from groups in the alliance, not the fund from the state budget. The time for capital refund is shorter, 15.9 years, in the form of build - operate - transfer (BOT).
“Big economic groups in the alliance will equally contribute capital, around 7-8% and raise the remaining together from shareholders to carry out the project,” said Mr Bac Ha.
Mr Tran Bac Ha also expected that if the government approves the detailed technical report in April 2007 and selects the alliance’s company as the investor of the
(Source: VNE)
Under planning, the In the next phase of investment, the highway will be built in three sections. The An Phu - belt road 2 section will have eight lanes and road-bed of 36m. The belt road 2 - Long Thanh section will have 8 lanes with road-bed of 42.5m and the Long Thanh - Dau Giay section will have 6 lanes with road-bed of 35m. The total investment in the first phase is VND9,890 billion and VND18,884 billion (over $1.18 billion) for the next phase. The The highway will also help promote the construction of the Previously the government approved the idea to build such a highway and the Ministry of Transport assigned the Vietnam Highway Investment and Development Company (VEC) and the Southern Transport Consulting and Designing Joint Stock Company (Tedi South) to research the project. However, difficulty emerges from VEC and Tedi South’s financial proposal since capital for this project comes from the state budget and foreign loans with government’s guarantee. (Source: BIDV’s feasibility report)
