Requirements for North-South expressway project relaxed

19-Oct-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

The Ministry of Transport has relaxed some requirements for the North-South Expressway project to encourage domestic investors to get involved in the expressway’s eight subprojects.

As for the requirements on financial capacity, investors working under the private-public partnership (PPP) format are required to have equity accounting for at least 20 percent of the total capital needed, instead of 30 percent as before.

The ministry kept the requirement on consortiums unchanged, requiring that each consortium have a maximum of five firms and the leader contribute at least 30 percent of the total investment of other members. However, the ministry removed the requirement that other members’ capital contribution equal at least 15 percent of the total capital.

Besides this, foreign investors will be allowed to join the project if their investment does not exceed 51 percent.

Requirements that remain unchanged include investors securing commitments from credit institutions to provide loans for the project and the government refraining from guaranteeing loans or minimum revenues for investors.

Earlier in May, the Ministry of Transport issued the bidding papers for international tenders for eight parts of the PPP cross-country expressway project to domestic and foreign investors.

By the end of July, 60 applications had been submitted to the project management unit, under the ministry, for the shortlist. Chinese contractors, either independently or as consortiums, made up half of the applications, bidding for all eight subprojects. Fifteen applications were submitted by contractors from South Korea, France and the Philippines, and another 15 came from Vietnamese firms.

However, the Ministry of Transport on September 24 decided to revoke the results of the international preliminary bidding process for the project, while adjusting procedures to launch a bidding session for domestic investors for security reasons. The ministry also explained that few bidders were eligible.

The North-South Expressway project, with 11 sections, is among the country’s top priorities for the 2017-2020 period. These 11 subprojects comprise eight PPP components—Mai Son-National Highway 45, National Highway 45-Nghi Son, Nghi Son-Dien Chau, Dien Chau-Bai Vot, Nha Trang-Cam Lam, Cam Lam-Vinh Hao, Vinh Hao-Phan Thiet and Phan Thiet-Dau Giay—and three subprojects using State capital—Cao Bo-Mai Son, Cam Lo-La Son and My Thuan 2 Bridge.

https://english.thesaigontimes.vn/72111/requirements-for-north-south-expressway-project-relaxed.html

 


Category: Business, Vietnam

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