Two Key PPP Ring Road Projects

9:31:45 AM | 11/19/2021

Ring Road 3 of Ho Chi Minh City and Ring Road 4 of Hanoi City may be built in the form of public-private partnership (PPP).

Ring Road 4 of Hanoi

Ring Road 4 of Hanoi is defined as one of the key prioritized tasks aimed at improving Hanoi traffic infrastructure. The completed route will not only help reduce traffic congestion, expand development space for the city and gradually restructure the economic activity along the two sides of the route, but also enhance connectivity, create spillover dynamics, and promote the socio-economic development of provinces and cities in the Hanoi greater region, the Red River Delta and the Northern Key Economic Space.

According to Decision 1335/QD-HDTDNN on the ratified appraisal of pre-feasibility study report for construction investment of Ring Road 4 in the form of PPP, submitted to the Government for review and to the National Assembly for decision on investment policies, 19 components of the project will be invested with the PPP method.

Accordingly, 19 contents include suitable conditions for PPP-invested option and investment necessity; superior advantages to other forms of investment; State fund viability in case of necessity; target assessment; expected scale, location and time of project implementation; demand for land and other resources; preliminary determination of total investment; preliminary assessment of investment efficiency, financial efficiency and socio-economic efficiency; and investment support mechanisms, policies and incentives.

The project starts at Km3+695 on Noi Bai - Lao Cai Highway (in Thanh Xuan commune, Soc Son district, Hanoi) and ends at Noi Bai - Ha Long Highway (in Que Vo district, Bac Ninh province). Its total length is 111.2km.

The investment cost is estimated at VND94,127 billion, of which the central budget is VND31,904 billion or 35% of the total; the local budget is VND33,538 billion or 37%; investors’ capital is VND26,965 billion; and loan interest is VND2,584 billion.

Ring Road of Ho Chi Minh City

The Government Office recently issued Official Letter 8024/VPCP-CN dated November 2, 2021 on the opinions of Deputy Prime Minister Le Van Thanh on the implementation of Ring Road 3 Project of Ho Chi Minh City.

Accordingly, Deputy Prime Minister Thanh requested the Ho Chi Minh City People's Committee to study opinions of relevant agencies, coordinate with the Ministry of Transport and the People's Committees of Dong Nai, Binh Duong, and Long An provinces to reach an agreement on assigning competent authorities to implement Ring Road 3 project of Ho Chi Minh City under the Law on PPP Investment and its pre-feasibility study and report it to the Prime Minister.

Ring Road 3 will run through Dong Nai, Long An, Binh Duong and Ho Chi Minh City. It has a total length of 97.7 km.

The project was approved by the Prime Minister in 2011 and revised in 2013.

According to the pre-feasibility study, the traffic route is 91.66 km in length, including 8.3 km of branch roads linking to Thu Duc Intersection and to Ong Keo Industrial Park (Dong Nai province).

The 8-lane road is designed for vehicles to travel at a speed of 100 kmph. Its investment fund is forecast at more than VND165,256 billion, excluding loan interest.

In Phase 1, the site will be cleared for the entire project. A four-lane route will be built at an estimated cost of VND82,598 billion, excluding loan interest. Based on its scale and investment priority policy, the PPP project is divided into components for implementation.

By Huong Giang, Vietnam Business Forum