The Ring Road No. 3 – a public investment project by Ho Chi Minh City

The Ring Road No. 3 project – Ho Chi Minh City is expected to start construction in the fourth quarter of 2023 (Photo of Binh Chuan-Tan Van section of the Ring Road No.3-HCM Project has been invested and built with 6 lanes).

Combination with the State budget capital

According to the plan, the Ring Road No.3-HCMC has a length of more than 89km passing through 4 provinces of Long An, Ho Chi Minh City, Dong Nai and Binh Duong. Regarding construction capital, from 2021, the Government has focused on directing the study of investment implementation plans, including investment in the form of public-private partnership (PPP). However, due to the large total investment and long toll collection period, this method is not feasible.

In the Notice No. 21/TB-VPCP dated January 24 by the Prime Minister's Office, the announcement of the conclusion of Prime Minister Pham Minh Chinh at the meeting on the Ring Road No. 3 and No. 4 - HCMC project also clearly indicates that because projects go through urban areas, with a large total investment, the cost of compensation, site clearance and resettlement is very high, investing in the PPP mode faces many difficulties and quite impossible, especially the Ring Road No. 3-HCMC.

From the above fact, combined with the report of the People's Committee of Ho Chi Minh City, the unit assigned by the Prime Minister to be the investment preparation agency for the Ring Road No.3 - HCMC project and the opinions of the ministries, sectors and other agencies, the Prime Minister agreed to have the public investment in the Ring Road No. 3-HCMC Project to speed up the progress, in which, using a combination of capital from the central budget and the local budget.

At the end of January, the People's Committee of Ho Chi Minh City submitted a report to the Prime Minister on the content of the pre-feasibility study report on the construction investment project of the Ring Road No. 3- Ho Chi Minh City.

According to the pre-feasibility study report, phase 1 of the project is more than 76km long, implementing 4 expressways, parallel roads on both sides with at least 2 lanes. For the site clearance, right from phase 1, the project will perform one-time site clearance according to the planning to keep the land in order to facilitate the investment in phase 2 up to 8 lanes. The total investment in phase 1 of the project is nearly VND76,000 billion, of which the cost of compensation and resettlement support is nearly VND42,000 billion.

To implement the public investment plan, a written proposal asking for the central budget to support 50% of the total investment of component projects in Ho Chi Minh City, Dong Nai Province, and Binh Duong Province, and 100% of the total project investment for the component in Long An Province. With the local budget capital, the Government proposes to submit to the National Assembly to allow the 4 localities to review the medium-term public investment plans 2021-2025 of the localities to arrange for the Ring Road 3-HCMC Project. At the same time, approve the increase of the total medium-term capital in the medium-term public investment plan 2021-2025 of the localities from additional capital sources that can be mobilized during this period. Specifically, from equitization and divestment of state capital in state-owned enterprises managed by local People's Committees, from land use revenue, etc.

The construction project expected to start in the 4th Quarter of 2023

The project of Ring Road No. 3-HCMC was approved by the Prime Minister in 2011 with 8 expressway lanes and the parallel roads on both sides, with at least 2 lanes on each side.

The Ring Road No. 3-HCMC is a strategic route for the entire Southern Key Economic Zone, contributing to the creation of a synchronous traffic network, creating linkages for the whole region. Therefore, it will help promote the economic development of the Southern Key Economic Zone.

According to the People's Committee of Ho Chi Minh City, the planning of the Ring Road No. 3-HCMC is defined as an inter-regional ring road, connecting the satellite cities of Ho Chi Minh City with the Southern Key Economic Zone in order to maximize the benefits from the advantages of the provinces. Hence, creating conditions for the development of inter-regional transport services, contributing to socio-economic development.

For Dong Nai Province, Vice Chairman of the Provincial People's Committee Vo Tan Duc said that the locality expects that the Ring Road No. 3-Ho Chi Minh City Project to be implemented quickly. Because this is a project that not only helps develop the entire Southeast region in general, but also helps Nhon Trach District to develop faster.

Despite playing a very important role, after more than 10 years of planning approval, the investment in construction of this road has achieved very limited results. Up to now, the whole project is only 15.3km in the Binh Chuan - Tan Van section passing through Binh Duong Province and has been completed and built with 6 lanes only.

To speed up the progress, in the project's pre-feasibility study report, the People's Committee of Ho Chi Minh City has also set specific progress milestones for the project.

Specifically, prepare and implement investment from 2022 - 2023; start the project in the 4th Quarter of 2023; By 2025, the construction will be basically completed, the whole route will be opened to traffic, and the route will be completed in 2026.

                                                                                                      Vi Quan