Vice Minister of Transport mentioned three reasons for the North-South express project to slow down


 Public Private Partnership Law has not been promulgated, the long-term credit market is difficult, the legal and inadequate legal corridor are the reason for slow progress of the North-South highway project.

Public Private Partnership Law has not been promulgated, the long-term credit market is difficult, the legal and inadequate legal corridor are the reason for slow progress of the North-South highway project.

At the inter-sectoral workshop on the North-South highway project, organized by the Ministry of Transport and the World Bank on April 26, Vice Minister of Transport Nguyen Ngoc Dong acknowledged The North-South Expressway project still faces many challenges in the context of unpublished Public Private Partnership Laws, difficult long-term credit markets and inadequate and consistent legal corridors.

North-South highway project slow progress, why?

North-South highway project slow progress, why?

According to Deputy Minister Nguyen Ngoc Dong, over the years, the infrastructure system has been focused on investment and improved significantly, contributing to the competitiveness of the economy. However, in order to meet the demand for capacity and quality for fast and sustainable socio-economic development, Vietnam’s transport infrastructure system is still limited. Particularly in terms of capacity, connectivity between modes.

“One of the big challenges is that investment resources are limited to demand, and public investment resources only meet about 25%. Therefore, in order to meet the needs of transport infrastructure development, it is necessary to create conditions for the mobilization of international investment capital, “said the minister.

Since 2008, with the support of the World Bank, the Ministry of Transport has piloted the Dau Giay – Phan Thiet expressway project. However, for many reasons, this project has not yet been implemented. In order to find a solution to this important project, the Transport Ministry’s leaders asked domestic and foreign experts, managers to discuss and propose solutions as well as share international experiences to implement the PPP model.

At the workshop, Deputy Minister Nguyen Ngoc Dong highly appreciated the World Bank has paid attention and help Vietnam pilot the PPP model and improve the relevant institutions in the transport sector.

On behalf of the World Bank, WB Director-General Achim Fock, said that it is willing to share information-sharing experiences on projects in this area that are being implemented elsewhere in the world.

The North East Expressway project in the 2017-2020 period was approved by the National Assembly in November 2017 and according to the plan, 2018 must prepare the project and commence some construction and installation packages. However, the progress of the project is being delayed.

In the period of 2017-2020, the North-South express project will be invested 654 km, divided into 11 component projects, with sections from Cao Bo, Nam Dinh to Bai Vot, Ha Tinh; from Cam Lo, Quang Tri to La Son, Thua Thien Hue; from Nha Trang, Khanh Hoa to Dau Giay, Dong Nai, My Thuan 2, Tien Giang and Vinh Long, of which 8 component projects will complete the feasibility report from now to July 2018 to move to bidding, bidding.

Of the 11 projects, there are 2 budget projects and 8 projects capitalized. Estimated total investment of the above 8 projects is about VND 104,070 billion, of which state investment capital is VND 40,360 billion for site clearance and resettlement.

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