If the plan is approved, the Vietnam Expressway Corporation (VEC) will be designated as the project investor, adhering to the Investment Law.
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A section of the HCM City-Long Thành-Dầu Giây Expressway. — VNA/VNS Photo Công Phong
The long-awaited expansion of the HCM City-Long Thành Expressway has taken a significant step forward with the finalisation of a plan, which has been submitted to the Government for approval.
The plan, initiated by the Commission for the Management of State Capital at Enterprises, involves expanding the Expressway by 21 km, stretching from HCM City to Long Thành District, Đồng Nai Province.
It also involves widening the road to eight lanes between Ring Road 2 and Ring Road 3 Intersections and ten lanes between Ring Road 3 and Biên Hòa-Vũng Tàu Intersections, requiring additional land clearance on both sides.
Its traffic capacity will also be supplemented with the construction of a new four-lane bridge, mirroring the existing Long Thành Bridge.
If the plan is approved, the Vietnam Expressway Corporation (VEC) will be designated as the project investor, adhering to the Investment Law.
The total investment is estimated to be approximately VNĐ15 trillion (US$600 million), of which about VNĐ5.6 trillion come from VEC and the remaining from commercial loans.
Construction work is scheduled to commence in March 2025 and conclude in December 2027.
The Commission also underlined two conditions for VEC to implement the plan smoothly.
Firstly, an increase in the company's charter capital from VNĐ1.1 trillion to VNĐ38.6 trillion is necessary. Such an increase would enable VEC to secure larger loans from banks, which are hesitant to lend substantial amounts to companies with low charter capital.
Secondly, VEC should be granted permission to defer principal and interest payments on bond loans previously covered by the Ministry of Finance. The deferral would provide more financial flexibility, as these payments amount to VNĐ5.3 trillion.
The Ministry of Transport has given its nod to the plan and recommended building more intersections to link the Expressway with Long Phước Road.
Meanwhile, the Ministry of Finance has objected to the Commission's proposal to allow VEC to defer principal and interest payments on bond loans previously covered by the Ministry.
In response, the Commission's representative clarified that VEC's ability to undertake the expansion project hinges on the Prime Minister's approval for the deferral.
Without approval, VEC's financial plan would be disrupted, jeopardising its ability to secure the necessary funding for the project.
In light of the differing opinions, Deputy Prime Minister Trần Hồng Hà has directed relevant ministries and agencies to continue reviewing the plan and providing additional input.
A meeting will be scheduled to discuss the matter further once additional input has been gathered.
HCM City-Long Thành Expressway is part of the 55km-long four-lane HCM City-Long Thành-Dầu Giây Expressway managed by VEC, serving as a crucial transportation artery connecting HCM City with the Southeast and the Central Highlands regions.