654 kilometers of expressway to be built in Vietnam
The Ministry of Transportation (MoT) in Vietnam is set to tender the Eastern North-South Expressway project in August 2019. The project includes the development of 654 km long Eastern North-South Expressway in Vietnam. The expressway passes through 13 provinces and cities and consists of 11 sub-projects. Out of 11, three sub-projects will be funded by the state and other eight will be funded through BOT (Built-Operate-Transfer) PPP model.
The BOT sub-projects include sections from Cao Bo (Nam Dinh province) to Bai Vot (Ha Tinh province); Cam Lo (Quang Tri) to La Son (Hue); Nha Trang (Khanh Hoa) to Dau Giay (Dong Nai); My Thuan 2 bridge (Tien Giang and Vinh Long). Three public investment sub-projects are Cao Bo (Nam Dinh) – Mai Son (Ninh Binh), Cam Lo (Quang Tri) – La Son (Thua Thien - Hue), and My Thuan 2 bridge (Tien Giang – Vinh Long).
Currently, MoT has approved investments for all the projects and is working on site clearance and design. All clearances and design are expected to be completed by the end of 2019.
The project's required investment is estimated at VND118 trillion (US$5.04 billion). Out of which VND55 trillion (US$2.35 billion) will be provided by the state government for the three public investment projects.
Ministry is going to open international bidding process for the project. So far 24 domestic developers, 6 Chinese, 2 Japanese, 1 French and 1 South Korean investor has shown interest in the project.
Financial estimates and technical design for the 8 PPP projects are expected to be completed by the end of September. In the first round of qualifications, a maximum of five investors will be qualified for the bidding.
Deloitte and Ernst & Young are advising MoT on financial structure, drafting the bidding documents and contract forms.
The sub-projects under the public-private partnership format are scheduled for construction in April 2020.