S. Korean, Chinese investors dominate tenders for North-South expressway subprojects
Tenders for building three sections of the North-South Expressway project have attracted a total of 27 investors, including 18 firms from South Korea and China.
|Officials of the Project Management Unit No. 6 receive investors’ tender applications for sections of the North-South expressway project. The tenders have attracted many investors from South Korea and China|
On July 8, Project Management Unit No. 6, under the Ministry of Transport, announced that it had received bidding applications for a section of the expressway project, stretching from Nghi Son Commune of Thanh Hoa Province’s Tinh Gia District to Nghe An Province’s Dien Chau District, from six investors, with four coming from South Korea and China.
Meanwhile, 10 investors have expressed interest in a section connecting Dien Chau and Bai Vot in Ha Tinh Province, including seven South Korean and Chinese enterprises.
In addition, 11 investors submitted their applications for a section from Mai Son Commune of Ninh Binh Province’s Yen Mo District to National Highway 45 in Thanh Hoa Province.
Of the total, there were seven South Korean and Chinese firms and a consortium comprising a Chinese company and a Vietnamese one, a representative of the Thang Long Project Management Unit, under the Ministry of Transport, told Giao Thong newspaper.
The candidates will be evaluated over the course of three months before investors are chosen for the three sections, which will be built under the public-private partnership format.
The ministry will assess the candidates’ eligibility based on their financial capacity, experience and proposed methods of executing the project, which have weighted scores of 60%, 30% and 10%, respectively.
The Nghi Son-Dien Chau section will have a length of 50 kilometers. This section’s execution requires an estimated cost of VND8.38 trillion (US$359.6 million), with VND2.55 trillion being sourced from Government bond sales and the rest from the investor.
Meanwhile, the Dien Chau-Bai Vot section, which was designed to be 49 kilometers long, will cost VND13.3 trillion, including over VND8 trillion from Government bond sales and the remainder from the investor.
The Mai Son-National Highway 45 section was planned to be 63.37 kilometers long at a cost of VND12.9 trillion, including VND3.2 trillion sourced from Government bond sales.
The National Assembly had earlier approved a plan to build 654 kilometers of the North-South Expressway in the 2017-2020 period, with a total investment of over VND118.7 trillion.
The project has 11 subprojects, with eight subprojects under the PPP format---Mai Son-National Highway 45, National Highway 45-Nghi Son, Nghi Son-Dien Chau, Dien Chau-Bai Vot, Nha Trang-Cam Lam, Cam Lam-Vinh Hao, Vinh Hao-Phan Thiet and Phan Thiet-Dau Giay---and three subprojects using State capital---Cao Bo-Mai Son, Cam Lo-La Son and My Thuan 2 Bridge. SGT
Few Vietnamese companies have participated in projects of VND4-5 trillion (US$172-US$215 million). This means there`s little chance for domestic investors.
Contrary to earlier predictions, 26 Vietnamese investors have expressed interest in the north-south rail expressway project.