Encouraging Socialisation in Transport Infrastructure Investment

10:06:53 PM | 9/30/2015

Lao Cai province has diverse networks of transportation, including road, rail and inland waterways. In recent years, Lao Cai province has paid due attention to the development of the transport infrastructure system, contributing significantly to attracting investment in the province.
Dang Van Luong, Deputy Director of the Department of Transport of Lao Cai province, said that in 2011 – 2015, inflation and the economic slowdown has had a negative impact on the construction and development of transport infrastructure. Also, the implementation of Resolution 11/2011 / NQ-CP of the Government is coupled with the Government’s guidelines to cut public investment make many projects extend progress and tighten credit. Also most of the works have to be constructed in complex terrain conditions, erratic climate changes. However, faced with difficulties, Lao Cai transport sector has issued many innovative policies and mechanisms to mobilise capital for the construction and development of Transport Infrastructure, such as collaboration with agencies and departments to access ODA funding from the World Bank (WB); development assistance funds of the Department for International Development (DFID); loans from the Asian Development Bank (ADB); funds from Japan International Cooperation Agency (JICA); and Korea International Cooperation Agency (KOICA); funds from enterprises and donations from people. In the period 2011 - 2015, Lao Cai has mobilised investment for transport infrastructure development to reach VND10,622 billion, up 150 percent over the period 2006-2010 (increased VND3,304 billion). Transport infrastructure in the province has made positive changes with 137 km national highway and 299 km provincial highway renovated and upgraded as: Highway Noi Bai - Lao Cai, Highway 4 connecting Lao Cai and Ha Giang province, Highway 4D (Lao Cai city - Sa Pa), Provincial Road 151 (Xuan Giao - Tang Loong Industrial Zone). Particularly, Lu Street road bridge was inaugurated in early 2015. Together, rural transportation route has reached most villages with 1,913 km highland rural roads completed; of which, 1,144 km of concrete cement, 326 km road paved gravel, 508 km of new roads are open. In addition, there are hundreds of bridges, underground construction, completed and put into use. That is the foundation of development, namely the facilitation of transportation, moving and transportation cargo of people, bringing new looks for rural and highland.
 
In the coming period, the Department will study and advise the PPC to complete legal basis in the field of investment in the form of public-private partnerships with the goal of comprehensive policies in the incentives, encouraging socialisation in investment in transport infrastructure in order to attract more and more capital investment budget for transport infrastructure development. At the same time, the province continues the reconstruction of several arterial roads to continue to add more socio-economic motivation. Prominent among them is the project connecting the highway Noi Bai - Lao Cai to Sa Pa town with a total investment of VND2,620 billion invested in BOT with support from the central budget. This project was adopted by the Ministry of Transport and the Provincial Standing Committee, and is expected to begin in 2015. When completed, the line will leverage Sa Pa tourism in particular, and the North West Province in general, as calculated by the authorities, by 2020, the province will welcome around 5 million visitors / year to Sa Pa. Also, the province also announces information about the projects to call for investment such as Lao Cai airport; Bus station, parking place and support services in Sa Pa town.
 
Nguyen Bach