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Finalize the investment plan for the expansion of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway

(News Portal – Dong Nai) – Prime Minister Pham Minh Chinh has requested relevant units to finalize the investment plan for the expansion of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway and submit it to the competent authorities for decision-making in March 2024. 

Investment plan to be submitted in March

Recently, in the concluding announcement from Prime Minister Pham Minh Chinh during his inspection and work trip on the implementation of key transport projects and initiatives at the beginning of 2024, the head of the Government assigned the State Capital Management Committee at enterprises to direct the Vietnam Expressway Corporation (VEC) to complete the investment plan for the expansion of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway.

Simultaneously, Deputy Prime Minister Tran Hong Ha was tasked with meeting with relevant ministries, departments, and agencies to submit the plan for decision-making in March 2024. 

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The Prime Minister has requested an early completion of the investment plan for the expansion of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway. 

Phase 1 of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway, with a scale of 4 lanes and a length of 54km, is part of the North-South Eastern Expressway. This is the first expressway investment and construction project for the key economic zone in the South. Since its operation in 2015, the traffic volume on this expressway has continuously increased.

According to VEC, the traffic volume on the Ho Chi Minh City - Long Thanh - Dau Giay Expressway has been increasing at an average rate of over 10.4% per year. Currently, the expressway is operating at full capacity. In particular, the Ho Chi Minh City - Long Thanh section has exceeded its capacity with 25% over the design capacity of 4 lanes and will not be able to meet the traffic demand when Phase 1 of the Long Thanh Airport is put into operation in 2026. Therefore, the expansion of this expressway has become essential.

The provincial People's Committee and the Airports Corporation of Vietnam (ACV) have repeatedly proposed to relevant agencies to expedite the implementation of the expansion project of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway.

Mr. Vu The Phiet, General Director of ACV, stated that the Ho Chi Minh City - Long Thanh - Dau Giay Expressway will be the main transportation link between Long Thanh Airport and Ho Chi Minh City. According to calculations, when Phase 1 of Long Thanh Airport is operational, 80% of passengers will have the demand to travel to and from Ho Chi Minh City. With the current capacity, the Ho Chi Minh City - Long Thanh - Dau Giay Expressway cannot meet the demand when Phase 1 of Long Thanh Airport is operational.

Propose a maximum of 2 feasible options

Also in the concluding announcement during the inspection and work trip on the implementation of key transport projects and initiatives at the beginning of 2024, Prime Minister Pham Minh Chinh requested relevant agencies to propose a maximum of 2 most feasible options for consideration and decision-making regarding the investment and expansion of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway.

Previously, in November 2023, the State Capital Management Committee at enterprises sent a document to relevant ministries and localities regarding the selection of options to implement the investment and expansion project of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway proposed by VEC. The proposed options include: Option 1 - investment with a capital structure of 100% mobilized by VEC (in which 40% of the total investment is contributed by the company and 60% is mobilized from credit institutions and financial institutions); Option 2 - investment with a mixed capital structure, from VEC, commercial banks, and the participation of the state budget (in which the state budget accounts for 46.42% and VEC accounts for 53.58% of the total investment); Option 3 - cooperation (consortium) with the State Capital and Investment Corporation (SCIC) in implementing the investment and expansion of the project (in which VEC contributes 57% and SCIC contributes 43% of the total investment); and Option 4 - coordination with private investors proposed in the form of public-private partnerships with a capital structure involving the state budget (in which the capital contributed by investors (VEC and other investors) accounts for 54.42% and the state budget accounts for 45.58% of the total investment).

Regarding the State Capital Management Committee at enterprises, they believe that in the current circumstances, the investment option with a capital structure involving state budget participation (Option 2) is the most feasible. This is also the option that VEC had previously proposed.

The State Capital Management Committee at enterprises believes that this option aligns with the objective of establishing VEC and leveraging its current advantages as the investor and operator of this expressway. Continuing to assign VEC as the investor for the expansion project will ensure the overall coherence of the entire project. ​

Author: vinh

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