Cam Lam – Vinh Hao Expressway Project economizes State’s capital to US$77 mln

SGGP
The Ministry of Transport yesterday opened the tender of the financial proposal package for the Cam Lam – Vinh Hao Expressway Section Construction Projec being one of the component projects under the North - South Expressway Project in the East in the period of 2017-2020.

(Illustrative photo:SGGP)

(Illustrative photo:SGGP)

The two joint-venture investors participating in bidding are 194 CIC - DCG - Hai Thach and Trung Nam - Horizon - Hai Dang - Son Hai. These are two investors approved by the Ministry of Transport to meet the technical requirements to implement the project.

Cam Lam - VinhHao expressway project has a total length of 78.5 kilometers with its total investment of VND9,458 billion (nearly US$408 million). Of which, the State contributed capital is VND5,991 billion (US$258 million), build-operate-transfer (BOT) capital is VND3,466 billion (US$150 million), including equity and loan capital.

According to the opening bidding document for the financial proposal package, the joint-venture Trung Nam - Horizon - Hai Dang - Son Hai proposed the State's capital to be VND5,063.64 billion (US$218 million), reducing the contribution of State capital to VND928 billion (US$40 million). Meanwhile, the joint venture 194 CIC - DCG - Hai Thach proposed the State's capital to be VND 4,199 billion (US$181 million) (reducing the State’s capital to 1,792 billion VND (US$77 million).

Thus, according to the bidding price between the two joint-ventures, the joint-venture 194 CIC - DCG - Hai Thach chose the plan to reduce the state capital contribution for the expressway is VND864 billion (US$37 million).

The Cam Lam - Vinh Hao Expressway Project is expected to start construction in 2021 and to be completed in 2 years and six months. The payback period is expected to last 16 years and 4 months.



By Quoc Hung- Translated by Huyen Huong

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