The construction project of Belt 4 in the Capital region has a large total investment. To ensure a balance of resources for implementation in this period, the project will be implemented in the form of public investment combined with PPP investment to reduce pressure on the state budget. According to Vice Chairman of the City People’s Committee. Hanoi Duong Duc Tuan, this is a very effective and reasonable investment model between the State and society.
To implement the national important project of the Capital Region, the total investment of the project is currently very large, 85,813 billion VND (more than 3.7 billion USD) , divided into 3 project groups. In which project group 1 is site clearance corresponding to 3 localities and 3 projects. Group 2 is the parallel urban road project under low for 3 localities 3 projects. Group 3 is a socialization project (only 1 project) under the public-private partnership (PPP) model and BOT contract undertaken by the investor. Investment capital of groups 1 and 2 shall be assumed by the central and local budgets; Project group 3, BOT investors undertake with a total investment of 29,410 billion VND, very large scale.
“We are aware of difficulties for both central and local budget capital sectors, which are now relatively complete balances of central medium-term public investment 2021-2025; for the Government, the balance is expected to be over 28,000 billion VND; for 3 localities, Hanoi, Hung Yen and Bac Ninh, the balance must also be over 28,000 billion VND, the structure is similar to the Central Government, in which Hanoi is the main, followed by Bac Ninh and Hung Yen “- Mr. Tuan said.
For the 3 localities implementing the parallel lower road project, it is likely that the capital must be up to 2026 and the investment progress is consistent with the process of forming the structure of the whole route.
For a PPP-BOT project with a scale of VND 29,410 billion, it must be completed by 2025.
The biggest difficulty is ground clearance
The biggest difficulty of the national key project, Belt 4, Capital Region, according to Vice Chairman of the City People’s Committee. Hanoi, is the work of site clearance. The specific mechanism created from the method of grouping project components to separate the project of site clearance.
Ho Chi Minh City’s Ring Road 3 basically does not have a railway, but with Ring 4, the Capital Region is the reserve ground clearance for the railway development corridor of 30 m in the total road width ranging from 90-135 m, the average is 125 m. So project group 1 is the key to open project 2 and 3; At the same time, this is the Government’s response to the localities. The following will also be agreed by the National Assembly that site clearance must be one step ahead, creating synchronization at the same time.
Experience shows that in terms of site clearance, even for the current Ring 4 of the Capital Region, the structure of the total investment in site clearance accounts for less than 25%. But for Ring 3, Ho Chi Minh City is likely to account for over 50%. Therefore, the slower the site clearance, the more dangerous it is. Certainly, the land clearance cannot be divided into multiple times because different periods of compensation and resettlement support will create an impossible effect. This is a lesson learned.
This difficulty is determined to be implemented according to the investment policy coming here in 2022 to 2024, investment preparation is from 2022 to 2023. Currently, the size of site clearance for Ring 4 is relatively small. large, 1,341 ha for all 3 provinces and cities; accounting for 19,000 billion VND of the total investment of 85,813 billion VND, less than 25%.
City only. Hanoi must have a plan for compensation and resettlement for about 14,647 households and resettlement for 2,203 households, and has prepared 9 resettlement sites with a size of about 36.3 hectares. When this difficulty is overcome, the next component projects such as the project of group 2 parallel urban roads will take place from 2022-2026; especially the PPP-BOT central project with 65% going on high and 35% going below to create conditions for urban development on both sides of the route will have to be completed in 2025.
Therefore, it was highly agreed to consider Ring 4 as an overall investment project on the basis of being divided into 3 groups. For clearance has overcome difficulties. This is the decisive key to implementing this project.
Besides, another difficulty is that Hanoi implements the model of the State in collaboration with society, that is, public investment combines public private investment. This is to reduce the load on the central and local budgets. Experience shows that when implementing the North-South Expressway in phase 1, even phase 2, it is difficult to ensure the feasibility of BOT in the PPP model. In fact, many PPP-BOT projects have to be converted to public investment in response to each period of economic recovery and development.
But Hanoi, with the support of the Government, is determined to implement this project in the form of PPP. The Law on Investment in the form of public-private partnership (PPP) has also shared the increase and decrease in revenue, the ability to collect closed fees of the typical belt by km. Or like Belt 4 also has its own attractiveness to ensure development. This is a condition to ensure feasibility but also a difficulty for Belt 4.
On the side of Ho Chi Minh City, Director of Ho Chi Minh City Department of Transport Tran Quang Lam said that the southern key economic region has a great role in socio-economic development, connecting international airports, seaports, and seaports. waterways, strengthen the transport connection of the provinces in the region from East to West, the highway system connects with your country. The construction of the Ring Road 3 system also helps to increase economic competitiveness.
With the role of “conductor”, from November 2021, the Government assigned the task to Ho Chi Minh City to be the lead agency for the project, the city has coordinated with the provinces to study investment forms and have been approved by the Government. Agree on the implementation method according to public investment. On that basis, promptly remove difficulties and obstacles, assess capacity, increase the ability to allocate capital with 50% from the local…
The director of the Department said that up to now, Ho Chi Minh City and the provinces have committed to the Government to ensure the allocation of resources to implement the project. On the basis of reviewing the medium-term public investment plan, focusing on key investment, giving priority to Ring Road 3, localities will issue bonds, borrow government loans…
Regarding the Ring 3 project in Ho Chi Minh City, the total investment is 75,370 billion VND (more than 3.2 billion USD), expected disbursement in the period 2020-2025 is 81%, or 61,000 billion VND.
Source: CafeF.vn
Source: Vietnam Insider