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Vietnam parliament approves the use of state budget for North-South expressway sections

16:12 | 21/06/2020

On Friday, Vietnam’s National Assembly (NA) approved to change the financing format of three sub-projects under the North - South expressway project from public private partnership (PPP) to public investment.

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vietnam parliament approves the use of state budget for north south expressway sections
A section of the Da Nang - Quang Ngai Expressway which will be connected to the North-South Expressway (Photo: VnExpress)

Vietnam parliament has approved the use of state budget for three North-South Expressway sections, urging on public-private-partnership investment for the remaining five, according to VnExpress.

The two sections that need to be completed on a priority bases are the 63-kilometer Mai Son – National Road 45 section which connects the northern province of Ninh Binh with the central province of Thanh Hoa; and the 98-kilometer Phan Thiet – Dau Giay section which connects Binh Thuan with southern Dong Nai Province.

The remaining five sections of the North-South Expressway will continue to be deployed under the public-private partnership (PPP) model. The National Assembly will re-examine the investment format if the government cannot find other investors for them.

vietnam parliament approves the use of state budget for north south expressway sections
Sections of North-South Expressway (Photo: Hanoitimes)

The eight sections are part of a total of 11 to build the 654-kilometer eastern cluster of the North-South Expressway.

Besides the VND55 trillion (US$2.35 billion) already allocated for the Eastern North – South project, the NA has also approved an additional funding of VND23.46 trillion (US$1 billion) from the state budget for the building of three sub-projects.

The NA made a request to the government to make sure of the accuracy and rationality of total investment capital of these projects, scheduled to complete by the end of 2022 at the latest.

vietnam parliament approves the use of state budget for north south expressway sections
A section running through Tan An city (Long An province) of Ho Chi Minh City-Trung Luong Expressway, part of the North-South Expressway (Photo: VNA)

Due to these changes, the total investment capital of the expressway project has now increased to VND100.81 trillion (US$4.32 billion), including VND78.46 trillion (US$3.36 billion) from the state budget to be pumped into six state-funded projects.

Currently, over 1,000 kilometers of expressway have been constructed in Vietnam, while an addition of 900 kilometers are set to be completed by end-2021.

During the 2021-2025 period, Vietnam aims at having at least 2,000 kilometers of expressways and by 2025, the figure would be 4,000 kilometers stretching from the northern province of Lang Son to the southernmost province of Ca Mau.

Including the Eastern North-South expressway, Vietnam would have four major roads across the country, including National highway No.1, Ho Chi Minh highway, and coastal highway, Hanoitimes reported.

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Using the state budget for building eight North-South Expressway sections could cut interest expenses alone by VND19.2 trillion ($823 million) over private investment.

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Minister of Transport Nguyen Van The said on April 14 that the component projects of Vietnam North-South Expressway will be put out to bid.

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