Vingroup, T & T Group would like to spend money on studying and proposing 3 projects of urban railway in Hanoi

According to the Hanoi People’s Committee, Vingroup and T & T Group are committed to applying the project to voluntarily raise capital for implementation.

No request for reimbursement of funds and ready to hand over all records, pre-feasibility study reports and feasibility study reports of the project to the People’s Committee of the city and selected units to continue deploying investment.

Vingroup, T & T Group is willing to spend money to prepare a report on pre-feasibility study of Hanoi urban railway projects.

Hanoi People’s Committee has just submitted a report to the Prime Minister on the policy to allow the Vingroup Group – T & T Group Joint Stock Company and the T & T Group themselves to spend money to prepare a report on the feasibility study 3 of the segments Hanoi urban railway priority investment in the period to 2025.

According to the City People’s Committee, after publicizing the planning of Hanoi’s urban railways and calling for investors to participate, there have been many investors interested in investing, but only two Vingroup and T & T Group have registered to apply for the project proposal.

Both investors proposed to invest in BT project. Specifically, Vingroup proposed 2 sections: Route 5 (Van Cao – Hoa Lac section) with length of 38.4 km (including section 1: Van Cao – Ring road 4, 15 km, section 2: Ring road 4 – Hoa Lac, 23.4 km long) and the second line (Tran Hung Dao – Thuong Dinh) is 5.9 km long.

T & T Group proposed the section 4 (Me Linh – Sai Dong – Lien Ha, 54 km long).

Noteworthy, both investors are committed when the research project proposal will voluntarily raise capital to deploy; No request for reimbursement of funds and ready to hand over all documents, pre-feasibility study reports and feasibility study reports of the project to the City People’s Committee and selected units to continue deploying investment.

In the case of being selected as an official investor, these investors are accounted for the cost of the project.

There are many investors registered but only Vingroup and T & T Group would like to apply for project proposal.

According to the assessment of Hanoi People’s Committee, Vingroup and T & T Group are all domestic investors in line with the Prime Minister’s instruction in Announcement No. 35 / TB-VPCP dated January 25, have good governance and financial capacity, have implemented Group A projects.

The City People’s Committee has reported, proposed that the Standing Committee of the City Party authorized these two investors to prepare a report on the pre-feasibility study (proposed project) projects of the railway section of Hanoi priority railway period By 2025, the Standing Committee of the City Party Committee agreed on the policy.

All investment projects mentioned above belong to important national projects, investment policies under the authority of the Prime Minister and the National Assembly. Therefore, in order to carry out the prescribed procedures, the Hanoi People’s Committee proposed the Prime Minister to consider and approve the permission of the People’s Committee of Vung Tau City and T & T Group to set aside money for the study of money Feasibility and feasibility study of urban railway routes as proposed above and submit to competent authorities for approval.

Once approved, the City People’s Committee will require investors to hired experienced and qualified foreign consultants to implement the project in 2018 and submit it to the Prime Minister for consideration and reporting. Congress passes in Session in 2018.

Previously, as VietnamFinance has informed, in July/2017, the People’s Committee of Hanoi has announced the list of 7 investors registered investment in urban railway projects in the Capital include: Vingroup Corporation, Xuan Thanh Group, Lung Lot 5 Joint Stock Company, Tan Hoang Minh Limited Liability Company, Licogi Corporation and MIK Group Vietnam Limited, Lotte (Korea) and Mosmetrotroy Russian Federation).

In June, the city of Hanoi handed over a memorandum of understanding that Vingroup will invest VND100,000 billion (about US $ 5 billion) in urban rail. This is the second time Vingroup has been involved in a transportation project in Hanoi. Previously, in August 2015, the Hanoi People’s Committee agreed to allow Vingroup to advance the cost of one trillion dong (excluding interest) to serve the Ring Road 2 project in Vinh Tuy – Mai Dong.

Under the Hanoi Transport Plan until 2030 with a vision to 2050 approved by the Prime Minister, Hanoi will build 10 roads with a total length of 417.8 km, of which 342.2 km Viaducts and landings by train, 75.5 km underground.

Total investment is estimated at $ 40.056 billion. The demand for capital for each period is $ 7.55 billion (2017 – 2020), $ 7.6 billion (2021 – 2025),  $3,566 billion (2026 – 2030) and $21.332 billion (after 2031).

10 urban railway routes planned by Hanoi include: Route 1 (Ngoc Hoi – Yen Vien – Nhu Quynh); Line 2 (Noi Bai – Thuong Dinh – Buoi); Route 2A (Cat Linh – Ha Dong – extends to Xuan Mai); Line 3 (Trôi – Nhon – Yen So); Line No 4 (Me Linh – Sai Dong – Lien Ha); Line 5 (Van Cao – Hoa Lac); Line No 6 (Noi Bai – Ngoc Hoi); Route 7 (Me Linh – Ha Dong); Line 8 (Son Dong – Mai Dich – Duong Xa); Son Tay – Hoa Lac – Xuan Mai.

The Hanoi People’s Committee proposes to add 6,000 ha of land in the 2011-2020 land use planning, with a total land use value of around VND300,000 billion, to make a counterpart fund for investors and auctions. Land use rights in the implementation of projects for the construction of transport works in the form of PPP partners, including urban railway projects.

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