To ensure the synchronous and timely implementation of all 8 North-South expressway projects in the East, the Ministry of Transport (MOT) recently issued a written report to the Prime Minister on the selection of international consultants to support the implementation of 4 expressway projects remaining in 8 investment projects under the form of PPP.
The MOT said that the Ministry is actively preparing the investment component projects to meet the requirements of the Government to build a number of expressways on the North-South route in the East in the period of 2017 - 2020. According to the plan, the approval of Feasibility Study Report of 8 PPP-funded projects with the support of the State will basically be completed in July 2018, to select investors in the right order of procedures as prescribed. The use of international consultants to support the implementation of projects, including assistance for the selection of investors has been approved by the Government.
According to the MOT, although the Ministry has implemented many PPP projects under the BOT contract, but mainly domestic investors and credit institutions involved, not attracting foreign investors and credit institutions, as it does not guarantee the attractiveness of bidding document as well as calling for investment.
The MOT recognizes that to be able to call on international investors and international donors to implement PPP projects, the project preparation in accordance with international practice is vital and plays a decisive role, to create credibility for foreign-invested enterprises, credit institutions and professional investors while still ensuring the legal rigor. Therefore, the use of international consultants to provide technical assistance for the implementation of North-South expressway projects in the form of PPP is appropriate and necessary.
Apply the international expert salary to tender
Currently, the Ministry of Planning and Investment and the Asian Development Bank (ADB) are supporting the MOT to prepare 4/8 investment projects to build the North South Expressway in the East, including Mai Son - Highway 45, Highway 45- Nghi Son, Nghi Son - Dien Chau and Dau Chau - Bai Vot in the form of PPP, using the PDF (Project Development Fund) to support deployment. The remaining 4 expressway projects are Phan Thiet - Dau Giay, Nha Trang - Cam Lam, Cam Lam - Vinh Hao and Vinh Hao - Phan Thiet have no international consultancy to support implementation.
To ensure the synchronous and timely implementation of all 8 North-South expressway projects in the East, the MOT requested the Prime Minister to approve international consultants to support the implementation of 4 remaining expressway projects mentioned above.
In addition, the MOT has proposed the Prime Minister to approve the Ministry of Finance to prepare the cost estimate applicable to the salary of the international consultant for this consultancy package as a basis for bidding selection of international consultants to implement, similar to ODA projects that have been implemented. The reason is that when estimating funding for state capital, the salary level of specialists is based on the provisions stipulated in Circular No. 02/2015 / TT-BLDTBXH about the salary level of domestic consultants as the basis for estimating tender packages for the provision of consultancy services in the form of contracts according to the duration of using state capital and the provisions stipulated in Decision No. 79 / QD-BXD dated February 15, 2017 of the Ministry of Construction to announce cost norms for project management and construction investment consultancy. According to these regulations, the price of bidding packages and consultancy fees is very low, only 30-40% of cost compared with ODA-funded packages. With the low value of this package and low cost, it is impossible to choose qualified international consultants.
4 expressway projects on the North-South route in the East are proposed to use international consultant
To ensure the synchronous and timely implementation of all 8 North-South expressway projects in the East, the Ministry of Transport (MOT) recently issued a written report to the Prime Minister on the selection of international consultants to support the implementation of 4 expressway projects remaining in 8 investment projects under the form of PPP.
Why recommend using international consultants?
The MOT said that the Ministry is actively preparing the investment component projects to meet the requirements of the Government to build a number of expressways on the North-South route in the East in the period of 2017 - 2020. According to the plan, the approval of Feasibility Study Report of 8 PPP-funded projects with the support of the State will basically be completed in July 2018, to select investors in the right order of procedures as prescribed. The use of international consultants to support the implementation of projects, including assistance for the selection of investors has been approved by the Government.
According to the MOT, although the Ministry has implemented many PPP projects under the BOT contract, but mainly domestic investors and credit institutions involved, not attracting foreign investors and credit institutions, as it does not guarantee the attractiveness of bidding document as well as calling for investment.
The MOT recognizes that to be able to call on international investors and international donors to implement PPP projects, the project preparation in accordance with international practice is vital and plays a decisive role, to create credibility for foreign-invested enterprises, credit institutions and professional investors while still ensuring the legal rigor. Therefore, the use of international consultants to provide technical assistance for the implementation of North-South expressway projects in the form of PPP is appropriate and necessary.
Apply the international expert salary to tender
Currently, the Ministry of Planning and Investment and the Asian Development Bank (ADB) are supporting the MOT to prepare 4/8 investment projects to build the North South Expressway in the East, including Mai Son - Highway 45, Highway 45- Nghi Son, Nghi Son - Dien Chau and Dau Chau - Bai Vot in the form of PPP, using the PDF (Project Development Fund) to support deployment. The remaining 4 expressway projects are Phan Thiet - Dau Giay, Nha Trang - Cam Lam, Cam Lam - Vinh Hao and Vinh Hao - Phan Thiet have no international consultancy to support implementation.
To ensure the synchronous and timely implementation of all 8 North-South expressway projects in the East, the MOT requested the Prime Minister to approve international consultants to support the implementation of 4 remaining expressway projects mentioned above.
In addition, the MOT has proposed the Prime Minister to approve the Ministry of Finance to prepare the cost estimate applicable to the salary of the international consultant for this consultancy package as a basis for bidding selection of international consultants to implement, similar to ODA projects that have been implemented. The reason is that when estimating budget for state capital, the salary level of specialists is based on the provisions as follows:
1- The provisions stipulated in Circular No. 02/2015 / TT-BLDTBXH. It is about the salary level of domestic consultants as the basis for estimating tender packages for consultancy services in the form of timing contracts using state capital;
2- And the provisions stipulated in Decision No. 79 / QD-BXD dated February 15, 2017 of the Ministry of Construction to announce standard project management and construction consulting costs.
According to these regulations, the price of bidding packages and consultancy fees is very low, only 30-40% of cost compared with ODA-funded packages. With the low value of this package and low cost, it is impossible to choose qualified international consultants.
