Credit signing ceremony for the North-South Expressway Project, Dien Chau - Bai Vot section

Investment component project for construction of Dien Chau - Bai Vot sectionunder the Project to build some expressway sections on the North-South Eastern route in the 2017-2020 period, approved by the National Assembly and the Government in the investment policy in Resolution No. 52/2017/QH14 dated November 22, 2017 and Resolution No. 20/NQ-CP dated March 28, 2018.

This project, constructed by Hoa Hiep Company Limited and its partners, has great economic, social and political significance, helping to improve traffic infrastructure, connecting economic and political centers in key economic regions, contributing to the completion of synchronous infrastructure, promoting socio-economic development, ensuring national defense and security, and enhancing the competitiveness of the economy in the context of deep integration.

Delegates attending the Signing Ceremony of the Credit Contract for the North-South Expressway Construction Investment Component Project, Dien Chau - Bai Vot section. Photo: Tien Dong

This project passes through Nghe An and Ha Tinh provinces with a total length of 48.3km. To meet transportation needs, phase 1 of the project is divided into investment phases with a scale of 4 lanes; design speed of 80km/h. On the route, modern works and utilities are synchronously constructed, including Than Vu tunnel connecting Dien Chau - Nghi Loc with a length of about 1,131m and Duc Hung bridge across Lam river with a total length of about 4km.

Mr. Pham Dinh Hanh - Director of Hoa Hiep Company Limited - representing the consortium of investors, expressed his commitment to quickly implement the project, ensure quality and soon put it into operation and exploitation. Photo: Tien Dong

This project has a total investment capital of about 11,157.82 billion VND, of which the investor mobilized capital is about 5,090.09 billion VND, the state capital participation is about 6,067.73 billion VND. The construction period is 36 months, and the operation and exploitation time to recover capital is about 16 years, 6 months and 8 days.

Speaking at the ceremony, Mr. Pham Dinh Hanh - DirectorHoa Hiep Company Limited, representatives of investors implementing this project said: In the past, investors and project enterprises have actively sought credit sources and have been funded by joint-venture banks for the project. Including: Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV), Vietnam Bank for Agriculture and Rural Development (Agribank), Vietnam Joint Stock Commercial Bank for Foreign Trade (Vietcombank), and North Asia Commercial Joint Stock Bank approved funding for the project with a limit of 3,560 billion VND.

Mr. Tran Minh Tinh - Director of BIDV Nghe An branch hopes that with their capacity and experience, investors will implement the project in the most effective way. Photo: Tien Dong

Mr. Tran Minh Tinh - DirectorBIDV Nghe An branchsaid: After a period of active work and close coordination of banks, credit sources have been ready for investors to deploy. Mr. Tinh also hopes that with his capacity and experience in the field of transportation, investors will soon complete the project and put it into operation and exploitation.

The Dien Chau - Bai Vot Expressway Construction Investment Project is one of the first projects in the field of transport infrastructure to be widely bid domestically, using State capital to evaluate commercial finance. The project is implemented with many solutions to overcome the shortcomings of previous BOT projects.

Mr. Le Kim Thanh - Director of the Department of Public-Private Partnership, Ministry of Transport requested investors and contractors to promote their responsibilities in project construction, ensuring the right time and quality of the project. Photo: Tien Dong

Speaking at the signing ceremony, Mr. Le Kim Thanh - Director of the Public-Private Partnership Department, Ministry of Transport emphasized that this is the project with the longest total construction time of 36 months, with many works requiring high technology such as Than Vu tunnel, Duc Hung bridge. In addition, the State has also supported the entire cost of site clearance and part of the construction cost to increase feasibility. The project is also newly built to ensure choice for users; the road service fee is determined from the beginning to reduce risks for investors and credit providing banks.

Representatives of investors and credit providing banks sign credit contracts. Photo: Tien Dong

Mr. Thanh also affirmed that the Ministry of Transport will support investors as much as possible to complete the project soon. However, investors and construction units need to ensure the right time and quality for the project.