Investors for Vietnam's North-South expressway to be named next year
Investors for eight components of the North-South expressway project will be named in August next year at the earliest, according to a report sent by the Government to the National Assembly.
Pillars are erected for the Trung Luong-My Thuan expressway, which is part of the North-South expressway project
The report indicated that the Ministry of Transport has basically completed the technical designs and the estimated investment calculation for those subprojects.
All the technical designs will be approved this month, while the estimated investment will be approved next month, Tuoi Tre Online newspaper reported.
The prime minister has also passed compensation and resettlement policies for the subprojects.
The Ministry of Transport has transferred the capital needed for site clearance to the State Treasury branches in localities that the expressway will pass through.
These localities have established site clearance councils and chosen consultants and are now measuring the land lots to be used for the subprojects and working out compensation plans.
After cancelling all the preliminary screening results of international tenders to choose investors for the eight subprojects, the Ministry of Transport on October 10 started to shortlist local firms as bidders for the subprojects.
Enterprises keen on the project can prepare applications for the first bidding round for at least 30 days before it is opened next month.
Under the prevailing regulations, these bidding applications will be considered for 30 days before being appraised and approved for 40 days. Thus, if convenient, the first bidding round will end in February next year.
The Ministry of Transport will later hold tenders to choose investors. The tenders will last for a maximum of 270 days, while a plan to choose investors will be approved in 40 days.
Bidding documents will be approved in 20 days and are expected to be issued in April next year.
Enterprises will have at least 60 days to prepare their bidding files and can submit them by June next year.
Following that, the applications will be assessed in 90 days and approved in 50 days.
Thus, the tenders to choose investors for the subprojects will end in November. However, the Ministry of Transport will direct its subordinate to finish choosing investors by the end of August next year.
The Government’s report revealed that the North-South expressway project, with 11 sections in total, will require a total investment of over VND102.5 trillion (US$4.4 billion), including VND50.8 trillion sourced from the State budget and VND51.7 trillion from private sources.
The Ministry of Transport has also confirmed that it could revoke the preliminary screening results of the international tenders for building eight sections of the North-South expressway project without having to give any reasons.
As many as 60 companies joined the preliminary bidding process for the eight subprojects, with Chinese companies accounting for half the bidders.
Among the eight projects, four had no eligible bidders, while two had only one eligible bidder each, one had two qualified bidders and the last one has three qualified bidders.
The number of bidders that passed the preliminary appraisal is small, resulting in low competition. Therefore, the Ministry of Transport decided to revoke the results. SGT
Deo Ca, Vinaconex, Tasco, Sungroup and Vingroup all hope to participate in implementation of the North-South Expressway project.
With the decision on canceling international bidding for the North-South expressway, the success or failure of the project now depends on the capability of domestic contractors and the credit to be provided.