SPLITTING THE DAU GIAY - PHAN THIET EXPRESSWAY PROJECT INTO TWO COMPONENTS

Component 1 is 36 km long from Dau Giay to Xuan Loc, invested by the government fund with loans from the International Development Association (IDA) of the World Bank (WB). After completing the investment, the Prime Minister assigned the Ministry of Transport to select suitable investors to franchise management, operation and exploitation; Component 2 is 62 km long from Xuan Loc to Phan Thiet, assigned to the Ministry of Transport to continue to coordinate with the WB and related agencies to research and develop an investment mechanism in the form of PPP, then submit to the Prime Minister for consideration and decision.

The Ministry of Transport shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment and related agencies, are responsible for agreeing with the WB on the investment plan, project structure, and arrangement of IDA loans for Component 1 in the financial year 2016 to promptly meet travelling demand and regional economic development; The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Transport and relevant agencies to complete necessary procedures for IDA loans from the World Bank, and arranging counterpart funds from the Vietnamese Government to promptly implement Component 1.

The Dau Giay - Phan Thiet expressway project is implemented in the form of design - build - finance - operation - maintenance and transfer after 30 years. This is the first pilot public-private partnership (PPP) transport infrastructure project in Vietnam using resources from the private sector, with the participation of the Government Fund (VGF) to ensure the feasibility of the project finance, to ensure the attractiveness of the project to private investors. The project's financial sources include VGF capital, loan capital and equity.

The Dau Giay - Phan Thiet expressway, with a length of 98.7 km, with four lanes, according to international standards, will connect Dong Nai with the coastal tourist city of Phan Thiet, Binh Thuan province. It is expected that the Dau Giay - Phan Thiet expressway will have high traffic volume with the project route passing through industrial parks and the upcoming construction of seaports and international airports.

Lan Chi          

baogiaothong.vn