Open door for PPP investment model
About 10 infrastructure projects in
areas of expressway, hi-speed railway and seaport request funding under
the Public-Private Partnership (PPP) form, said the Ministry of
Transport (MoT).
About 10 infrastructure projects in
areas of expressway, hi-speed railway and seaport request funding under
the Public-Private Partnership (PPP) form, said the Ministry of
Transport (MoT).
According to MoT Deputy Minister Ngo Duc Thinh, the Dau Giay-Phan Thiet expressway, invested by Bitexco Group, will be the first pilot project to be implemented under the PPP model in the field of building the national expressway network.
Bitexco’s representative said the project has an estimated investment capital of 14.35 trillion VND (over 775 million USD), of which 1.4 trillion will come from Bitexco and the remaining will be mobilised from credit organisations, domestic and foreign partners. Work on the 100km-long route is expected to commence late 2010.
The Ninh Binh-Thanh Hoa expressway project, with an estimated investment capital of 29.8 trillion VND (over 1.6 billion USD), has also been selected to be implemented under the PPP form. The 120 km-long expressway will run through three provinces, including Nam Dinh, Ninh Binh and Thanh Hoa.
To speed up the implementation of the two projects, the Ministry of Planning and Investment has called for the World Bank’s financial support through its reconstruction and development capital sources.
In the context of expressway projects facing difficulties in capital refunding, using WB loans though the PPP model is considered the most effective and feasible capital mobilisation solution due to its low interest rates, long lending time and fewer risks, Thinh said.
Apart from the two above-mentioned projects, the MoT has made a list of eight other projects calling for domestic and foreign private investors under the PPP model. They include the Da Nang-Quang Ngai, My Thuan-Can Tho, Noi Bai-Ha Long, Ha Long-Mong Cai, Dau Giay-Da Lat and Ben Luc-Long Thanh expressways, the Hai Phong International port and the Ho Chi Minh City-Can Tho hi-speed railway./.
According to MoT Deputy Minister Ngo Duc Thinh, the Dau Giay-Phan Thiet expressway, invested by Bitexco Group, will be the first pilot project to be implemented under the PPP model in the field of building the national expressway network.
Bitexco’s representative said the project has an estimated investment capital of 14.35 trillion VND (over 775 million USD), of which 1.4 trillion will come from Bitexco and the remaining will be mobilised from credit organisations, domestic and foreign partners. Work on the 100km-long route is expected to commence late 2010.
The Ninh Binh-Thanh Hoa expressway project, with an estimated investment capital of 29.8 trillion VND (over 1.6 billion USD), has also been selected to be implemented under the PPP form. The 120 km-long expressway will run through three provinces, including Nam Dinh, Ninh Binh and Thanh Hoa.
To speed up the implementation of the two projects, the Ministry of Planning and Investment has called for the World Bank’s financial support through its reconstruction and development capital sources.
In the context of expressway projects facing difficulties in capital refunding, using WB loans though the PPP model is considered the most effective and feasible capital mobilisation solution due to its low interest rates, long lending time and fewer risks, Thinh said.
Apart from the two above-mentioned projects, the MoT has made a list of eight other projects calling for domestic and foreign private investors under the PPP model. They include the Da Nang-Quang Ngai, My Thuan-Can Tho, Noi Bai-Ha Long, Ha Long-Mong Cai, Dau Giay-Da Lat and Ben Luc-Long Thanh expressways, the Hai Phong International port and the Ho Chi Minh City-Can Tho hi-speed railway./.
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