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Writer's pictureHoài Đức Trần

North - South Highway Project: State Budget will pour over 78 trillion VND


On June 19, National Assembly deputies voted to approve the policy of changing the mode of investment from BOT to public investment in three North - South Eastern expressways in the 2017-2020 period, including: Mai Son - Highway 45, Vinh Hao - Phan Thiet, Phan Thiet - Dau Giay.


The National Assembly also approved an additional VND 23,461 billion by the state budget for these three projects. With the goal until the end of 2022, the 03 Projects shall be completed and put into use. Thus, the total state budget capital allocated to the 11 North-South Expressway sections in the east in the 2017-2020 period is VND 78,461 billion. In particular, the 6 sections of public investment total budget allocated over 53,100 billion. If disbursed in time, the projects are completed on schedule in 2022 (except for My Thuan bridge in 2023), the economy will greatly benefit from this cash flow (not to mention the budget support for the BOT project).


With 3 high-speed sections recently approved by the National Assembly by public investment, the Ministry of Transport leader said that it is expected that by the end of June, the National Assembly will issue a resolution; after about 5 days (July 5), the Government will have a resolution assigning the Ministry of Transport to implement.


After the Government assigns, the Ministry of Transport will carry out the procedures for switching to public investment, in parallel with the bidding procedure for selecting contractors, to approve the plan on July 8.


Following that, the Ministry of Transport also shall approve the technical design, estimate and approve the bidding documents on July 30. Organizing the bidding publicly to select contractors, sign contracts ... finishe on September 25. The first package is expected to start on September 27, the remaining packages will begin in October and November 2020. It is expected that by the end of 2021, these public investment projects will basically complete the road foundation and constructions, and some big bridges and tunnels will be completed by 2022 to open for traffic.


Along with conducting bidding to select 3 public investment projects mentioned above, the Ministry of Transport also carried out bidding to select investors for the remaining 5 BOT projects. To date, the Ministry of Transport has approved a list of investors through pre-qualification and bidding, expected the bidding for investor selection will end on November 15. From November 16 to December 5, the Ministry of Transport negotiated, finalized and signed a BOT contract with the investor. At the end of this period, investors have 6 months to sign a contract to raise capital from the bank. If the investor signs a credit contract, construction will start in mid 2021, otherwise (after 6 months of signing the BOT contract) the contract will be canceled. In case of cancellation of BOT contract, the Ministry of Transport will report to the Government to submit to the National Assembly for transfer of these projects to public investment.


Regarding the clearance of high-speed sections, the Ministry of Transport said that it is expected to complete basically in this June. Regarding the relocation of infrastructure (electricity, telecommunications, water), the Ministry of Transport is expected to be completed in the third quarter of 2020 (slower than the target assigned by the Prime Minister before June 30). In particular, in some localities, the actual clearance money has been "teamed" up compared to the approved estimate. In particular, the highest increase is the section QL45 - Nghi Son exceeding the estimate of 541 billion VND, the Nghi Son - Dien Chau section exceeding 443 billion VND; Dien Chau - Bai Vot section exceeded 390 billion dong; the section of Mai Son - QL45 exceeds VND 305 billion; the section of Cam Lo - La Son beyond VND 190 billion ...

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