Proposing many mechanisms to promote the two belt projects in Hanoi and Ho Chi Minh City

On the morning of June 6, Minister of Planning and Investment Nguyen Chi Dung presented the Government’s report to the National Assembly on the pre-feasibility study report for the Belt 3 project in Ho Chi Minh City and the Ring 4 in Hanoi.

Whereby, Belt 4 regions of the capital 112.8 km long, passing through Hanoi, Hung Yen and Bac Ninh; form of public investment combined with public-private partnership (PPP); total investment is 85,800 billion VND.

The project is divided into 7 component projects, which are decided to invest and organize implementation by the locality. The Hanoi People’s Committee is the focal agency. Particularly, the expressway project of the whole route and the route connecting 9.7 km along the Noi Bai – Ha Long highway will be implemented under the PPP method (kind of BOT contract), by the Hanoi People’s Committee as the competent agency to apply the model. open domestic bidding method to select investors.

Belt 3 of Ho Chi Minh City 76 km long, passing through Ho Chi Minh City, Dong Nai, Binh Duong, Long An, built in the form of public investment; total investment in phase one is 75,300 billion VND. After being put into use, the project will have to collect a fee to recover the investment capital for the state and local budgets, respectively, according to the contributed capital.

The project is divided into 8 component projects, which are decided by localities to invest and organize. Ho Chi Minh City is the focal point. For mineral mines used as common materials for licensed and operating projects, with the exploitation term remaining, the provincial People’s Committee is allowed to increase the capacity by no more than 50% without having to prepare an adjusted investment project. environmental impact assessment.

Regarding the general mechanism for the two belt routes, the Government proposed to the National Assembly to allow the adjustment of the medium-term public investment plan for the period 2021-2025 that has been arranged for the Ministry of Transport to localities to implement according to the method of implementation. the respective allocation scheme; permit the use of capital from the central and local budgets to invest in component projects.

The National Assembly assigns the National Assembly Standing Committee to consider and decide to adjust project investment policies when necessary and urgent in the period between sessions of the National Assembly.

The Government proposes to allow the Prime Minister to decide to appoint contractors for a number of bidding packages, applied in the two years 2022-2023. Order and procedures for appointment of contractors according to regulations on bidding. If the appointment of a contractor arises, the Government shall report it to the National Assembly for consideration and decision to extend the application period of this mechanism.

Chairman of the Economic Committee Vu Hong Thanh said the verification agency agreed that it was necessary to invest in two projects and apply the mechanism that the Prime Minister may appoint contractors for a number of projects in the two years 2022-2023.

However, some members of the Committee said that the Government’s proposal to invest in two projects with the scale of 17 m and 19.75 m of road surface divergence was not suitable with Vietnamese standards on highways. The investment on this scale will not have an emergency stop lane, but only an emergency stop, which is difficult to ensure traffic safety, easy to cause congestion, and reduces investment efficiency.

“The Government has accepted and explained the above comments. But the Economic Committee suggested that in the feasibility study step, the Government should direct the continued review and accuracy of the design plans of the two projects to have a the optimal solution,” said Mr. Thanh.

In addition, the Government continues to review the total investment in the Ho Chi Minh City Ring 3 expressway to determine the correct rate of return for budgets at all levels.

The implementation of many expressway projects at the same time from 2022 to 2025, according to the Economic Commission, will require huge resources, so it is difficult to ensure the basic progress of completing the two belts in 2025. The Government needs to assess fully supplement the capacity of disbursement, capital absorption, balance and efficiency in resource allocation, management capacity, human resources, the ability to cause scarcity and increase in raw material prices… to have a solution to ensure the feasibility and progress of the two projects.

Hoang Thuy – Viet Tuan