This is the first time a transport project of Vietnam is to be promoted overseas.
This is the first time a transport project of Vietnam is to be promoted overseas.
To seek $1 billion to build the Dau Giay – Phan Thiet highway, the Ministry of Transportation and the World Bank will jointly promote the project in a number of Asian countries. It is expected that international competitive bidding will help find the second investor for the project, besides Bitexco, which has agreed to contribute 60 percent of the capital.
The Dau Giay – Phan Thiet Highway is one of the first transport projects that will be implemented in the form of public – private partnership (PPP).
“This project is very important so the government and related provinces are interested in its success,” stressed Minister of Planning and Investment – Mr. Bui Quang Vinh.
According to the website of the Ministry of Planning and Investment, Minister Vinh said that the Vietnamese Government would create favorable conditions for investors, including assistance for the site clearance, relocation, tax and land leasing fees.
The Dau Giay – Phan Thiet will run from the HCM City – Long Thanh – Dau Giay highway in Dong Nai province to the Highway 1A to Bau Ba, Binh Thuan Province.
The total length of this road is 100 km. When it is completed, it will help reduce travel time between HCM City and neighboring provinces. The project will be kicked of in 2014 and is scheduled to complete in 2018.
According to the Ministry of Planning and Investment, Vietnam needs $16-17 billion dollars a year to build infrastructure, while the capital raised from traditional channels can meet only 50-60 percent of the need. Therefore, the PPP form is being interested of the government.
Besides completing the legal framework for PPP, the Ministry of Planning & Investment has asked the Government to grant about $1 billion for pilot PPP projects and to establish PPP project preparation funds to assist investors.
(Source: VNN)
