The Ministry of Transport, the management boards of the North-South Expressway’s sub-projects, has announced that 32 of the 93 bids from domestic investors and joint ventures have been shortlisted for further evaluation.
Investors for eight components of the North-South expressway project, with total private investment capital for 11 sub-projects is estimated at VND 51.7 trillion (US$2.22 billion), will be named in August next year.
Vietnam has closed its door to international investors joining the Eastern North-South Expressway initiative, catering to domestic groups only. However, the bankability of this key national project remains in question.
Nguyen Minh Cuong, Principal Country Economist at the Asian Development Bank (ADB), talks to bizline.vn on the effect of halting international bidding for eight projects on the North-South expressway.
The Ministry of Transport has announced that only local contractors will be chosen to implement the eastern North-South Expressway and launched a preliminary bidding session in October for eight sections of the project.
The Ministry of Transport has issued a statement regarding the selection of investors for a projectto build a number of routes in the eastern section of the North-South Expressway.
Prime Minister Nguyen Xuan Phuc and Ministry of Transport on September 16 commenced the construction of the Cam Lo – La Son section of the North-South Expressway, connecting Quang Tri with Thua Thien – Hue province.
Seven projects attract 36 submissions from foreign companies, mostly South Korean and Chinese.
Due to some strict requirements, some experts said it will be difficult for the North-South expressway to attract investors.
More investors from South Korea than those from China have submitted bids for eight sections of the North-South Expressway, according to the Ministry of Planning and Investment (MPI) at a press briefing in Hanoi on June 27.
The Eastern North-South expressway project includes 11 sub-projects with total length of 654 kilometers running through 13 provinces and cities, of which three will be financed by state budget and eight under the PPP and build-operate-transfer (BOT) financing.
Tolls on eight sections being developed under the public-private partnership format for the North-South expressway project are likely to be collected for at least 24 years.
The expressway construction is scheduled to be finished in 2025.
The Ministry of Transport (MOT) held a conference on May 17 to call for investment in a number of sections of the eastern North-South Expressway, drawing interest from some 100 local firms and 50 international organizations and investors.
International investors have expressed interest in building a section of the North-South expressway project from National Highway 45 to Nghi Son Commune in the north-central province of Thanh Hoa. The management board of the project will issue prequalification documents to bidders from May 8 to July 8, according to Cao Viet Hung, head of the board’s Planning Office.