According to the Resolution No 20 / NQ-CP on the project to build some expressways on the north-south route of 2017-2020, the Government left the possibility for Bitexco Group to return to the high-speed project. Dau Giay – Phan Thiet after many years of pursuit but not successful.
There will be an interagency working group to promote the project
The resolution passed a number of proposals from the Ministry of Transport to implement the project to build some expressways on the north-south route from 2017 to 2020, passed by the XIV National Assembly. Resolution No. 52/2017 / QH14 dated October 21, 2017 on investment policy for the construction of some expressways on the north-south route 2017-2020, ensuring the principle of publicity, to have a mechanism to supervise, manage and effectively use investment capital.
The Resolution clearly states that the elaboration and approval of technical designs and work construction cost estimates serve as a basis for determining the total investment capital and the financial plan in the bidding dossier for selection of investors for tighter control over investment costs. The selection of investors must be through bidding; In case only one investor wins the prequalification report to the Government for consideration and decision.
The Government has assigned the Ministry of Transport to add the draft contract in the bidding documents for selection of investors. “Investors breach the contract in case they fail to sign the credit contract after 6 months With banks and credit institutions having enough loan capital as prescribed for the project implementation, the competent State bodies shall confiscate the performance bonds and the contracts shall cease to be effective. ” The Ministry of Communications and Transport shall report to the Prime Minister and propose handling solutions.
According to the Resolution, the North-South expressway project will be added to the list of key projects in the transportation sector; The Prime Minister shall consolidate the State Steering Committee for key works and projects of the communications and transport branch, supplement the members being the leaders of the People’s Committees of the provinces and cities where the projects pass.
Together with that, to set up an inter-branch working group to assist the competent state agencies in negotiating and implementing projects, including representatives of Ministry of Planning and Investment, the Ministry of Finance, Ministry of Natural Resources and Environment and Ministry The Ministry of Justice and the locality where the project passes, and invite a number of experts if necessary.
Two alternatives for Bitexco at Dau Giay – Phan Thiet expressway
For the Phan Thiet – Dau Giay project, Prime Minister decided to assign the Ministry of Transport to coordinate with Ministry of Planning and Investment and the Ministry of Finance to determine project preparation costs and opportunity costs for Bitexco Company, negotiate with Bitexco Company in two options to report to Prime Minister for consideration and decision.
Accordingly, in the first project, Bitexco Company will not continue to invest in the project. The State shall use the Government bond capital allocated to the project to pay the project preparation expenses and opportunity expenses to Bitexco Company right after the feasibility study report is approved.
In the second scenario, Bitexco is bidding for investor selection. Bitexco is entitled to incentives under the Government’s Decree No. 30/2015 / ND-CP; The project preparation expenses shall be included in the project’s investment expenses and be paid with the source of government bonds allocated to the projects immediately after the bidding results for the selection of investors.
The Government shall assign the Ministry of Communications and Transport to base itself on the scale of each component project to evaluate and decide on the investment according to the order and procedures prescribed by law; For investment capital of the State participating in the execution of investment projects in the form of public-private partnerships (PPPs), the Ministry of Transport shall report them to the Prime Minister for decision before approving the feasibility study reports.
Ministry of Transport shall assume the prime responsibility for, and coordinate with concerned ministries and branches in, elaborating and promulgating documents on the settlement of contracts for investors. Ministry of Transport and the State Bank of Vietnam shall study and propose plans to mobilize credit capital for the project.
The State Bank of Vietnam is assigned to issue documents guiding specific conditions for investors to access and provide credit capital and report to the Government and the Prime Minister on the issues. out of authority; At the same time, to coordinate with the Ministry of Communications and Transport, Ministry of Planning and Investment and Ministry of Finance in studying and proposing plans to mobilize credit capital for the project.
Ministry of Planning and Investment issues legal documents specifying the working capital in the total investment capital of the project. The Finance Ministry shall promulgate legal documents specifying the profit level on the investors’ equity capital; Guiding the payment of state capital for participation in the implementation of PPP projects and final settlement of completed projects.
Ministry of Natural Resources and Environment shall direct the implementation, shorten the time for evaluation and approval of environmental impact assessment reports and the compensation, support and resettlement policy framework to meet the progress of projects. Presidents of the People’s Committees of the provinces and cities where the project passes are responsible for organizing the ground clearance work to meet the progress of the projects.
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