NA Vice Chairman concerned with capital shortages for transport projects

First section of Danang-Quang Ngai Expressway opened to trafficLe Anh HCMC – The Vietnam Expressway Corporation (VEC) on August 2 opened to traffic the first 65 kilometers of Danang-Quang Ngai Expressway, the first expressway in central Vietnam. The expressway has four lanes with a width of 24.25 meters in the first phase and allows for a maximum speed of 120 kilometers per hour. The section connected to Highway 1A is 12 meters wide and allows for a maximum speed of 80 kilometers per hour. The first phase requires a total investment of US$1.64 billion, equivalent to VND34.5 trillion, including US$798.6 million lent by the Japan International Cooperation Agency (JICA) and US$590.4 million by the World Bank. Land clearance, demining, value added tax (VAT) payment and project management costs are sourced from the nation’s reciprocal capital. VEC said the project to construct the 65-kilometer section from Tuy Loan in Danang City to Tam Ky City of Quang Nam Province was divided into eight main packages and five supporting packages. Despite a shortage of capital, the investor has completed all components on time, including a tunnel under Eo Mountain, 59 bridges with a total length of seven kilometers including 52 bridges on the main route, four interchanges in Tuy Loan, My Son, Ha Lam and Tam Ky, four toll stations and a main operation center in Tuy Loan. To build the first 65 kilometers of expressway, 560 hectares of land was taken back and 9,300 households were relocated. About 80 public facilities…... [read more]

HCMC wants An Phu intersection construction on fast trackLe Anh HCMC – The HCMC government has urged the Ministry of Transport to approve an interchange development project for An Phu intersection in District 2 including an overpass and a tunnel. The first phase of the project will need VND800 billion for construction of a two-way tunnel with four lanes connecting HCMC-Long Thanh-Dau Giay Expressway and Mai Chi Tho Avenue towards the Saigon River Tunnel. In an urgent correspondence sent on July 31 to the ministry, the city said the interchange, when completed, will be a three-level structure. The first level will accommodate a two-way tunnel with two lanes each way connecting HCMC-Long Thanh-Dau Giay Expressway and Mai Chi Tho Street. Besides, the city also proposed another two-lane tunnel linking the expressway and Luong Dinh Cua Street. The second floor will be a two-lane overpass connecting Luong Dinh Cua Street and the expressway, and another two-lane overpass linking Cat Lai crossroads and Mai Chi Tho Avenue towards the expressway. In the future, Long Thanh- Thu Thiem and HCMC-Nha Trang monorail lines will be built above the intersection, passing Mai Chi Tho Avenue towards Thu Thiem station. To rapidly ease traffic congestion at the intersection, the municipal government proposed the Ministry of Transport approve the project’s scale and the investment solution for the first phase using surplus funds from the HCMC-Long Thanh-Dau Giay Expressway project funded by the Japan International Cooperation Agency (JICA). At a meeting between the city and the ministry…... [read more]

NDO – The Transport Ministry and the Vietnam Expressway Corporation (VEC) conducted a trial run and put into operation the Km0 – Km65 section of the Da Nang-Quang Ngai Expressway, in Hoa Tien commune, Hoa Vang district, Da Nang city, on August 2. The expressway project, which is part of the North-South Expressway route, has been embraced in the Vietnam expressway network development plan until 2020, with orientations towards 2030. With a length of almost 140 kilometres, the expressway runs through three central localities, including Da Nang (eight kilometres), Quang Nam province (92 kilometres) and Quang Ngai province (40 kilometres). The route is being constructed at total costs of US$1.64 billion, with over US$798 million in loans received from the Japan International Cooperation Agency (JICA), over US$590 million financed by the World Bank and the remainder as the Vietnamese Government’s counterpart capital, which serves compensation, land clearance and resettlement work. The Da Nang-Quang Ngai Expressway has been designed to meet Class A expressway standards, with the scale of the first phase featuring a width of 24.25 metres, accommodating four lanes and allowing for a maximum speed of 120 kilometres per hour. Addressing the event, the leaders of the Transport Ministry asked the investors and contractors involved in constructing the Km0-Km65 section, to promptly finish their work on other categories in order to put the route into operation with high efficiency and safety. They also urged for the acceleration of the construction progress, with the aim of putting the entire 140…... [read more]

A 65km section of the 140km Da Nang-Quang Ngai Expressway project will be put into operation in August. (Photo: VNA) Da Nang (VNA) - The Vietnam Expressway Corporation (VEC) will put the first 65km road section of the 140km Da Nang-Quang Ngai Expressway into operation on August 2. This is the first expressway in the central and central highlands region. A VEC official said that the first stage of the project – the 65km section from Tuy Loan in Da Nang city to Tam Ky city, the capital of Quang Nam province, has been completed. The four-lane section with two emergency lanes will allow vehicles to travel at 120km per hour, reducing travel time between Da Nang and Quang Ngai province. VEC’s General Director Mai Tuan Anh said the road was an important part of the National North-South Highway, and its second stage was scheduled for completion later this year. He said VEC would also collect tolls from all vehicles travelling on the Tuy Loan-Tam Ky section. The Da Nang-Quang Ngai Expressway project commenced construction in 2012 with a total investment of 29 trillion VND (1.4 billion USD), of which 635 million USD was sourced from the World Bank and 673 million USD from the Japan International Cooperation Agency (JICA). The 26m-wide four-lane link, running through Da Nang city and Quang Nam and Quang Ngai provinces, will connect industrial parks in the region and help boost transportation in the East-West Economic Corridor that…... [read more]

All findings by the Vietnam Expressway Corporation will be submitted to Korean authorities when requested, Deputy Transport Minister Nguyen Hong Truong told the press on April 3. He said his ministry learned about the POSCO scandal through media reports, promising to provide more detailed information once there are reports from the Republic of Korea's authorities. “As Vietnam is fighting corruption in every sector, the news is attracting a great deal of public attention,” he said. Korean media last month reported that POSCO E&C, a subsidiary of giant steelmaker POSCO, allegedly operated a slush fund of 10 billion won by adjusting the costs of its projects between 2009 and 2012 in Vietnam. According to Truong, the deputy minister, during the period in question, the company was in charge of three packages in the construction of the Noi Bai-Lao Cai Highway connecting Hanoi and the northern province of Lao Cai. The US$1.2 billion-project is funded by the Asian Development Bank and was completed at the end of last year. The Korean company was also contracted for two packages in the Long Thanh-Dau Giay Highway project linking Ho Chi Minh City and the southern province of Dong Nai. All the projects have been checked by their foreign sponsors and state auditors’ initial inspections have found no problems with them, Truong said, adding that procedures related to management and investment were too in line with the laws. In fact, POSCO E&C won the packages with offered prices lower than investors’ estimates, by 15-30%, he…... [read more]

The accident happened in Vinh Phuc Province's Lap Thach District on the 265km highway, which connect Hanoi to the northern province of Lao Cai. The collision killed a couple from Hanoi sitting at the front of the second coach. Both vehicles were seriously damaged. Most of the injured were taken to Vinh Phuc General Hospital, while some were transported to Phu Ninh Hospital in the neighbouring Phu Tho Province. In response to the accident, Deputy Prime Minister Nguyen Xuan Phuc, who is also the Chairman of the National Committee for Traffic Safety, asked all relevant agencies to investigate the accident immediately. In his urgent official message to traffic safety committees in Vinh Phuc, Lao Cai and Hanoi, as well as related agencies under the Ministry of Public Security and Ministry of Transport, Phuc instructed police to start their investigation into the accident and identify the victims. The traffic safety committee in Vinh Phuc Province has been assigned to supply health workers, medicine and medical equipment to minimise human losses. The Vietnam Expressway Corporation was asked to check problems on the expressway. Also on December 21, two separate accidents killed two and injured three others. A truck killed a student and severely injured three others yesterday in Bau Lam Commune, Xuyen Moc District in Ba Ria-Vung Tau Province. The truck reportedly moved into the opposite lane and hit a group of four students from the local Hoa Binh High School. The truck's driver and another man who was in the truck…... [read more]

Revenue bonds are issued by a municipality to finance either a project or an enterprise in which the issuer pledged to the bondholders revenues generated by the operation of the project.These latest 15-year revenue bonds are the first to be guaranteed by the Government. The bond issuance is part of a capital-mobilizing plan the corporation raised for the construction of the Noi Bai-Lao Cai Highway.As planned, the Noi Bai-Lao Cai highway has a total investment of VND20.11 trillion. The 245-km long project will help link trade between remote and urban areas.The toll charged by the highway, once in operation, will help pay back bondholders’ principal and interest.According to the Hanoi Securities Trading Centre, the issuance of the Government-guaranteed bonds has created a new instrument of capital mobilization for infrastructure development on the local stock exchange.As dictated by the Government, the bond will provide advantages for both the issuer and investors, the center added.The Vietnam expressway Corporation will receive Government support during the bond issuance, in investment capital and payment guaranteed for bondholders as governed by the Finance Ministry.Furthermore, the State will also help the corporation open a fund for bond payment. The fund will come from part of the money generated by the project, sent to the commercial bank as an account to ensure bondholders’ payment on time.A flexible mechanism for bond interest will also be set up with the aim of ensuring the process of capital mobilization through bond auction.“Government support will help increase investor’s attraction to this bond…... [read more]

The 51-kilometre expressway will start from the centre of Ho Chi Minh City and finish at the junction with National Highway 1 at Dau Giay in Dong Nai province. The project also includes the construction of a 1,700-metre bridge over the Dong Nai River in Long Thanh district. The Manila-based bank said the Ho Chi Minh City-Long Thanh-Dau Giay Expressway will contribute to ease traffic congestion and have a significant positive impact on economic activities in Vietnam’s largest city and its surrounding provinces as well as in the Mekong Sub-region. The entire expressway project is scheduled to be completed in 2014, with a total capitalization of US$932 million, sourced from the Japan Bank for International Cooperation (JBIC) and the Vietnam Expressway Corporation.... [read more]

The US$932-million project will receive other funding from the Japan International Cooperation Agency (JICA) and the Vietnam Expressway Corporation. The four-lane expressway runs from the centre of Ho Chi Minh City through a 1,700m bridge over the Dong Nai River to Dau Giay in Dong Nai Province. “The new expressway will have a significant social and economic impact on Ho Chi Minh City, its surrounding provinces, and the Greater Mekong Subregion,” said Ayumi Konishi, chief ADB representative in Vietnam. It will help regulate traffic flows and reduce transport costs and time, as well as accidents and pollution, he added. The project is scheduled for completion in 2014.... [read more]

Nguyen Ngoc Thuyen, deputy head of the Department for International Co-operation under the Ministry of Transport (MoT), told VIR that, “As toll collection is a very profitable business, which could help investors quickly recoup their investment, foreign investors from the US, India, Japan, and France have been working with the ministry on the possibility of buying toll rights on certain expressways.” He added that India’s GMR Group was negotiating with the investor of the My Thuan-Can Tho expressway project about the transfer of toll collection rights, while Vinci Group from France officially asked for concessions to collect tolls on three high-way projects. The trend of buying toll rights has been prevalent since an international consortium led by Indian infrastructure company IL&FS signed an agreement with Vietnam Infrastructure Development and Finance Investment Company (Vidifi) to buy the toll collection rights on the Hanoi-Haiphong expressway in October 2014, making it the first foreign investor to bag a deal of this kind. One of the most potentially lucrative routes, in terms of toll collection, is the recently-opened 105km Hanoi-Haiphong expressway. Under construction for five years, and with a price tag of over US$2 billion, this is the first route in Vietnam to have a 5cm polymer concrete surface. Transferring the rights to collect tolls on expressways is a new and unprecedented policy. The IL&FS contract would open up more opportunities for other foreign investors to secure similar deals on other expressway projects, according to Thuyen. Earlier, Vietnam Expressway Corporation (VEC) also wanted to…... [read more]

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