The Fecon - Cienco1 - Coteccons consortium is the latest investor to have expressed interest in the Ninh Binh - Bai Vot Expressway Project, one of five major transport infrastructure projects expected to be developed under the PPP model.
There are two reasons why this consortium of domestic investors is eager about the expressway project, which is being supported by the World Bank (WB) in assisting the Ministry of Transport (MOT) to study and update the project proposal.
According to the WB’s study results, compared with the initial proposal, the project’s investment scale has changed significantly. Specifically, instead of investing in the entire 6-lane expressway route, with Phase 1 first investing in 4 lanes from Ninh Binh to Bai Vot, consisting of 2 sections with a total length of 193 km, the WB recommends first investing in the 66 km Cao Bo - Nghi Son section.
The project’s total investment is estimated at around USD 1.067 billion, of which state support capital accounts for USD 467 million (44%); the investor’s equity capital is USD 156 million (15%); and commercial loans amount to USD 444 million (41%). This scale and capital structure are considered suitable for the capacity of domestic investors.
In addition, the project also applies a relatively new PPP model - BFOM: build, finance, operate, maintain, and pay the investor according to service quality.
According to Deputy Minister of Transport Truong Tan Vien, BFOM proposes several contents that will go beyond the current regulatory framework, including the State’s contribution ratio (greater than 30%) and payments based on service quality during the operation process.
If approved by the Prime Minister, the WB consultant will complete the project investment model in 2015; investor selection will take place in 2016.
While the Ninh Binh - Bai Vot Expressway Project is still in the proposal formation stage, the USD 757 million Dau Giay - Phan Thiet pilot PPP Expressway Project will complete the prequalification evaluation for selecting the second investor in January 2014. If issues related to tolls, the toll increase roadmap, and parent company guarantees are soon fully resolved, this project will achieve the target of commencing construction in the third quarter of 2015.
For the Bien Hoa - Vung Tau Expressway, the project, which was once introduced by the Japan International Cooperation Agency (JICA) to several Japanese investors for investment study, has also completed its basic design. According to the review results by the Japanese consultant for the project, the 37.6 km Bien Hoa - Phu My section and the 9.2 km Phu My - National Highway 51 connecting section, with a 4-lane scale and total investment of around VND 11,688 billion, will be developed under the PPP model and completed before 2020, with state capital participation of around 35%.
According to the preliminary study results of Cuu Long Corporation for Investment, Development and Project Management of Infrastructure (CIMP Cuu Long), the 33 km Trung Luong - Cai Be section, with total investment of around VND 16,000 billion, under the Trung Luong - My Thuan Expressway Project, may attract investors under the PPP model, on the condition that the State contributes 40% of the capital and allows toll collection for the entire Ho Chi Minh City - Trung Luong section.
CIMP Cuu Long said that, in addition to JICA and Posco E&C, which have participated in investment studies, several other foreign investors are also very interested in this project, such as Moonary Group, Metro Pacific Tollways Corp…
The Ministry of Transport is currently urgently preparing the project proposal to submit to the Ministry of Planning and Investment for appraisal before reporting to the Prime Minister for approval to include it in the PPP list. “The above-mentioned projects have been assessed by international consulting firms as suitable for the PPP model,” Mr. Vien said.
(Source: baodautu.vn)