The Department of Transport of Ho Chi Minh City has just sent a document to the Department of Planning and Investment of Ho Chi Minh City on supplementing and completing specific mechanisms and policies in the draft Resolution to replace Resolution 54/2017. of the National Assembly, including mention of BOT projects (form of public-private partnership with the meaning of construction, business, and transfer contracts) in the area.
Accordingly, this Department proposed 6 existing projects of road improvement, upgrading and expansion works (including roads, road bridges, road tunnels) to apply BOT contract type.
The Department of Transport proposed to apply the BOT contract for 6 traffic projects. Photo: HT
Leaders of Ho Chi Minh City Department of Transport assessed that the main urban trunk roads, gateways, connecting with neighboring provinces … have been invested and are being exploited. However, the existing scale has not met the traffic demand and has not been expanded according to the planned road.
In the context that the city’s ability to balance the budget cannot meet the needs of investment in developing the infrastructure system in general and transport infrastructure in particular, the Department of Transport proposes to apply the contract form. BOT contract for the existing road system.
Accordingly, the Department of Transport proposes projects that can be considered such as: Expanding National Highway 1 (divided into 3 sections corresponding to 3 projects) with a total preliminary investment of 12,876 billion VND; to renovate and upgrade National Highway 22 (the section from An Suong intersection to Ring Road 3) about VND 1,200 billion; expanding National Highway 13 by more than 12,190 billion VND; the project to complete and extend the East – West axis to the south connecting to Ring Road 3 is about VND 13,837 billion; project to expand the North – South road axis 54,204 billion VND; construction of the dynamic road (the road parallel to National Highway 50) with a total capital of 3,816 billion VND.
Ho Chi Minh City will need to attract about 100,000 billion VND of socialization to implement 6 BOT projects. Photo: HT
Thus, if the mechanism is approved, Ho Chi Minh City will need to attract about VND 100,000 billion to socialize to implement the above 6 projects in the form of BOT contract.
The Department of Transport believes that considering doing the above 6 BOT projects does not change administrative procedures as prescribed because it only expands the subjects applying the BOT contract form according to the provisions of the PPP Law (investment in the form of BOT contracts). public-private partnership).
The scope of application of the content of mechanisms and policies is determined only in the area of Ho Chi Minh City. If the pilot mechanism is effectively applied in Ho Chi Minh City, it will be a replicated model and will be the basis for updating and adjusting the application of the Law on Investment under the PPP method.
In the project of developing traffic infrastructure of Ho Chi Minh City in the period of 2020 – 2030, the total road km is expected to be invested by the city about 454 km (including highways, belts, national highways, and traffic routes). main shaft, big bridge…). Total estimated budget in the period 2021 – 2025 is about 266,000 billion VND (in which, the city budget is 92,000 billion VND, accounting for 34.6%, investment capital in the form of public-private partnership (PPP) is 174,000 billion VND. copper accounted for 65.4%).