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Tan Phu - Bao Loc expressway project: Determination of lam dong province

(VLR) Tan Phu Expressway (Dong Nai) - Bao Loc (Lam Dong) is a PPP project that is being prioritized by the People’s Committee of Lam Dong province to allocate resources for implementation. If the Prime Minister approves the investment policy this April, the locality will soon take steps such as preparing a feasibility study report, site clearance, investor selection to complete the project by the end of 2024.

Tan Phu Expressway - Bao Loc is a PPP project that is being prioritized by the People’s Committee of Lam Dong province to allocate resources for implementation

Tan Phu Expressway - Bao Loc is a PPP project that is being prioritized by the People’s Committee of Lam Dong province to allocate resources for implementation

Breakthrough right from the “start-up” phase

The People’s Committee of Lam Dong province was assigned by the Prime Minister to be the competent state agency for the Tan Phu - Bao Loc expressway project although the route is located in both Lam Dong and Dong Nai provinces.

Bearing the responsibility of implementing the expressway that the Party Committee, authorities and people have been waiting for almost 20 years, the leaders of Lam Dong province have submitted the report No. 1154 / TTr-UBND asking the Prime Minister to approve the investment project right in February 2021.

In the report No. 1154/TTr-UBND, the People’s Committee of Lam Dong province has proposed in the structure of the total investment of phase I of project of approx. VND 16,408 billion, the local budget will contribute VND 4,500 billion, the central budget supports VND 2,000 billion, the rest will be selected by investors to mobilize with equity and commercial loans. This is considered a special highlight because the budget capital of Lam Dong province accounts for 69% of the total State budget participating in phase I of the Project. This is the highest rate of capital contribution that a locality has ever participated in a transport infrastructure project implemented under PPP method.

According to Mr. Tran Van Hiep, Chairman of Lam Dong Provincial People’s Committee, this plan received a high consensus of the local political system. In difficult conditions, the average annual budget of VND 900 billion in 5 years by Lam Dong province to support this project shows the high determination of the Party Committee of Lam Dong province to bring the project into practice.

Not only that, the special point of the project is also the disbursement mechanism of capital flows committed by the Provincial People’s Committee to the Prime Minister and the Ministry of Planning and Investment. The investor’s capital will be spent first, then the local budget capital and the central budget will be used in the end.

The method of using diverging capital in such order once again demonstrates the determination and sharing spirit of the locality towards the common difficulties of the country and other provinces. On the other hand, “this is a new mechanism, without precedent, but we think it is necessary for investors to be responsible for showing their own capabilities”, Mr. Tran Van Hiep emphasized.

Also according to the leaders of Lam Dong province, up to this point, the preparation for investment in the Tan Phu - Bao Loc Expressway Project has taken place quite smoothly. In early March 2021, the Ministry of Planning and Investment petitioned the Prime Minister to allow the establishment of an Inter-Agency Appraisal Council to appraise the pre-feasibility study report of the project.

Currently, Lam Dong People’s Committee is expecting the Prime Minister to approve the investment policy of the project in the first half of April 2021 at the latest, paving the way for the locality to take the next steps such as preparing a feasibility study report, site clearance and investor selection. The goal is to complete the project by the end of 2024.

Change the socio-economic face and shape the future

Completion of the Tan Phu - Bao Loc expressway project will connect the entire Central Highlands with the Southeast and Mekong Delta. Then the transport time from HCMC to Lam Dong is shortened from 6 hours to 3 hours, helping save time and materials. The local socio-economy has also been given favorable conditions for development from Da Lat tourism, agriculture, logistics,...

Completion of the Tan Phu - Bao Loc expressway project will connect the entire Central Highlands with the Southeast and Mekong Delta

Completion of the Tan Phu - Bao Loc expressway project will connect the entire Central Highlands with the Southeast and Mekong Delta

Chairman of the Provincial People’s Committee Lam Dong shared, “The Standing Committee of the Provincial Party Committee, People’s Council, People’s Committee, Vietnam Fatherland Front Committee and all leaders have determined that if this road is formed, it will contribute to changing the face of socio-economic and the future of Lam Dong province not only in 5 years, 10 years but also for a vision”.

The Standing Committee of the Provincial Party Committee, People’s Council, People’s Committee, Fatherland Front Committee of Vietnam and all leaders have determined that if this road is formed, it will contribute to changing the socioeconomic face and shaping the future of Lam Dong province not only in 5 years, 10 years, but also for a vision.
Mr. Tran Van Hiep, Chairman of Lam Dong

The urgency of the Tan Phu - Bao Loc Expressway Project was confirmed in the Conclusion Notice of the Prime Minister Nguyen Xuan Phuc at the meeting in January 22, 2021 on the implementation of the project: “The Government believes this project has an important role and significance in socio-economic development, security and defense assurance of Dong Nai and Lam Dong provinces as well as the Central Highlands region. The early implementation of the project will solve the biggest bottleneck of Highway 20 over Bao Loc pass, with a large, narrow slope, around many dangerous bends and often affected by the weather during rainy season causing landslides, which have not been resolved for many years”.

The Provincial People’s Committee has actively coordinated with qualified, experienced and financially capable investors in the field of road traffic infrastructure investment such as Deo Ca Joint Stock Company, Hung Thinh Joint Stock Company, South Central Joint Stock Company to consult and propose the Project. At the same time, to speed up working with Ministries, branches and central agencies to promptly promote investment procedures.

With the consensus efforts of the parties, there are grounds to believe that the dream and desire of the people and the peoples of Lam Dong province for the Dau Giay - Lien Khuong expressway will be realized in the near future.

Ngoc Trang

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