HANOI, May 15 (Engineering Daily) -- Open and transparent tenders must be invited to choose investors for the North-South Expressway project in line with the Government Office’s Notice 217 on a conclusion of Deputy Prime Minister Truong Hoa Binh on the big-ticket project.
The North-South Expressway is a project of national importance, so it must be submitted to the Politburo and the National Assembly (NA) after it is thoroughly screened by the Government.
The Government has asked the Ministry of Transport to finalize a report on the project’s total investment cost and schedule.
The entire route schedule cannot be planned, so in order to build section by section, the government decided to clear only 684 km.
Meanwhile, investment policies and mechanisms will be needed to attract investors and speed up the project. However, tendering must be made open and transparent, so awarding no-bid contracts will be prohibited.
The Government has also agreed to add the Dau Giay-Phan Thiet section to the cross-country expressway project.
The State Bank of Vietnam has been assigned to closely monitor banks’ lending to the project and make sure investors will have sufficient reciprocal capital in accordance with Decree 15/2015/ND-CP on public-private partnership investment. This means those investors relying entirely on bank loans cannot participate in the project.
Earlier, the Government approved a plan proposed by the Ministry of Transport to use VND55 trillion from the proceeds of G-bond sales in 2016-2020 to partly fund the 1,372-kilometer North-South Expressway project worth a staggering VND314 trillion.
The funding will cover site clearance for the project while the remaining capital will come from other sources like official development assistance (ODA) loans and private sector investments.