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Southren provinces and cities study to build expressways

(VLR) In order to realize the goal, which is the whole country will have about 5,000km of North - South expressway by 2030, in addition to complete on schedule projects, many localities in the southern provinces also actively invited investors with experience in the construction of transport infrastructure (such as Deoca Group) to participate in the study and propose a feasible plan to start the construction of expressways according to approved plan.

Southren provinces and cities study to build expressways

Southren provinces and cities study to build expressways

69km connecting Ho Chi Minh City - Thu Dau Mot - Chon Thanh

On May 24, 2021, Deoca Group cooperate with Binh Phuoc province on investment solutions for Ho Chi Minh City - Thu Dau Mot - Chon Thanh highway. According to the planning of Vietnam’s expressway network to 2020, orientation to 2030 approved by the Prime Minister in Decision No. 326/QD-TTg dated March 1, 2016, the expressway of Ho Chi Minh City - Thu Dau Mot (Binh Duong province) - Chon Thanh (Binh Phuoc province) has a total length of about 69km, expected to be invested in a new scale of 6 - 8 highway lanes, with a total investment of about 24,150 billion VND and implemented in the period before 2030.

Based on the planning plan, Deoca Group analyzed and evaluated the criteria to adjust the route plan, scale and total investment. At the meeting, Deoca Group presented two new route options for the Ho Chi Minh City - Thu Dau Mot - Chon Thanh expressway so that Binh Phuoc has a basis for comparison. In option 1, the project has a length of 33km with 04 car lanes, and the total investment is expected to be 6,900 billion VND. Option 2, the project has a length of 67km 04 car lanes, with a total investment of 21,236 billion VND and is divided into 2 component projects.

Mr. Ho Minh Hoang, Chairman of Deoca Group mentioned the experiences drawn from practice in the process of implementing investment projects that Deoca Group has been performed, to advise the province to organize the implementation of the project. In the context of the new PPP Law, there are still many obstacles in implementation, the state budget is limited, and the credit capital for transport infrastructure investment in the form of BOT is increasingly tightened. The most optimal solution to implement the project is to follow the “3 P’s” method.

Specifically, P1 - State budget capital, showing the political determination of local leaders, unifying the route plan, the structure of local and central capital and the capital that needs to be called for to raise P2 and P3 capitol. At the same time, establishing Project Steering Committees of the three provinces headed by the Secretary of Binh Phuoc province to create an expressway investment fund. P2 - Equity, select investors with experience and financial capacity to jointly plan and manage with the locality. P3 - Other mobilized capital, determining investment plans, capital needs and potentials, advantages of the localities where the project goes through to support the creation of expressway investment sources such as real estate, industrial urban areas, hi-tech agriculture, services, logistics... favorable in calling for capital.

Mr. Nguyen Van Loi, Secretary of Binh Phuoc Provincial Party Committee highly appreciated the solutions that Deoca has studied and said that both options are effective because they significantly reduce the total investment compared to other studies previously suggested. The innovative and practical “3 P’s” model is the key to solving the problem of infrastructure investment in the context of a tight budget. “In a short time, Deoca Group has given a very detailed, specific and valuable introduction with advice on how to do it. The report is both practical and summarizes practical experiences, I highly appreciate the advice and opinions of Deoca Group”, Binh Phuoc Provincial Party Secretary emphasized.

An Huu - Cao Lanh “straight through” route

On May 25, 2021, Luu Xuan Thuy - Vice Chairman of the Board of Directors of Deoca Group worked with the People’s Committee of Dong Thap province on the investment of the An Huu - Cao Lanh expressway. According to the investor’s plan, this will be a horizontal highway parallel to National Route 30, passing through Dong Thap and Tien Giang provinces, with the first point connecting to Trung Luong - My Thuan highway at An Thai intersection, and the end point will connect with National Route N2 section My An - Cao Lanh (belonging to the North - South West expressway in the future). The project has a length of 28km, with the total investment is expected to be about 6,000 billion VND. When completed and put into use, the new expressway will share the traffic pressure with National Route 30, which is now seriously degraded. At the same time, An Huu - Cao Lanh is a route connecting vertical and horizontal traffic, creating a complete traffic network, which is a driving force for economic, social and defense development in the Dong Thap Muoi region in particular and the Mekong Delta in general.

The “3 P’s” model of Deoca Group is very creative and practical, which is the key to solving the problem of infrastructure investment in the context of a tight budget

The “3 P’s” model of Deoca Group is very creative and practical, which is the key to solving the problem of infrastructure investment in the context of a tight budget

Regarding the implementation plan, Mr. Luu Xuan Thuy proposed 2 options. The first option is to add the An Huu - Cao Lanh expressway to the Trung Luong - My Thuan expressway project (expected to be completed by the end of 2021) to take advantage of financial, human and equipment resources available at this project, thereby shortening the procedure and payback time for the project. Option 2 is implementing new project investment under the normal PPP method, assigns Dong Thap Provincial People’s Committee as a competent State agency.

The proposed plans of the Group have also received a lot of consensus from representatives of the provincial departments. Mr. Pham Thien Nghia, Chairman of Dong Thap Provincial People’s Committee emphasized the urgency of the project investment and the expectations of the local. “We also really want to invest in this project right away, asking investors to survey the plan, calculate the specific roadmap and responsibilities of each agency and unit to announce to the people. It’s a great thing,” Mr. Nghia said.

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