State capital to make up 40% of North-South Expy project cost
According to the construction scheme for the expressway just submitted to the Government by the Ministry of Transport, the road would stretch 1,372 kilometers and pass through 20 provinces and cities.
The ministry proposed three investment plans for this project.
Under the first plan, the expressway would have at least four lanes. All site clearance work would be done in the first phase so that the road could be expanded later.
Plan two is similar to plan one but just part of the site clearance work would be done. According to plan 3, the expressway would be developed at once rather in phases.
The transport ministry calculated that the road under plan one would help save some VND55 trillion compared to the third plan.
If plan one is implemented, the expressway could meet transport demand until 2030 while the cost of site clearance could be lower than plan two.
Given the current tight State budget, the ministry petitioned the Government to execute the Eastern North-South Expressway project under plan one.
Accordingly, road sections with transport demand forecast at over 30,000-35,000 vehicles per day by 2030 would have four lanes with a total width of 22 meters. Those road sections with less traffic would have four narrower lanes with a total width of 17 meters.
The Ministry of Transport said the expressway would require VND229.83 trillion under plan one with VND136.28 trillion mobilized by investors. The ministry proposed the Government and the National Assembly allocate the remaining VND93.53 trillion (40.7%), which should be sourced from bond sales, to develop the project.
Deputy Minister of Transport Nguyen Nhat told a recent seminar on construction of the North-South Expressway that the State budget should make up a small proportion of the project’s total cost as Vietnam’s public debt stays high now.
He said an appropriate road map should be devised to ensure the feasibility of the project. To fund the project, the ministry would have to convert project management units into corporations to attract investment. These corporations will operate in the same way as Vietnam Expressway Corporation.
The ministry also considers mobilizing capital from citizens to carry out the project as foreign investors usually require Government guarantees for their revenue and exchange rate risks, and even request the Government’s guarantees for their bank loans.
In March, the Government approved the zoning plan for the nation’s expressway network until 2020 with a vision towards 2030. Vietnam will have 6,411 kilometers of expressway by 2030.
The North-South Expressway will stretch some 3,083 kilometers, including the Eastern North-South Expressway with 1,814 kilometers and the Western North-South Expressway with 1,269 kilometers.
There will be 14 expressways in the north connecting Hanoi and other localities with a total length of 1,368 kilometers.
Three expressways with 264 kilometers in length would be built in the central and Central Highlands regions while the southern part of the country would have seven expressways stretching 983 kilometers.
