Vietnam to Pilot PPP Form for Dau Giay-Phan Thiet Expressway
The Vietnamese prime minister has agreed to pilot the Public-Private-Partnership (PPP) for Dau Giay-Phan Thiet Expressway project.
The Binh Minh Import Export Production and Trade Co., Ltd. (Bitexco) and the World Bank’s International Finance Corporation (IFC) were selected to be the project investors.
The six-lane expressway will link the southern province of Dong Nai and the central province of Binh Thuan. It will be connected to the underway north-south highway to form a 400 km route running through economic centers of the southern key economic region.
Earlier, state media said the Dau Giay-Long Thanh Expressway project will have a total capital of VND19.32 trillion (US$1.01 billion), with 49% of this expected from the World Bank.
Weak infrastructure is among Vietnam’s bottlenecks in attracting foreign investors, analysts said, emphasizing the necessity and efficiency of the PPP model as state budget and ODA can meet only 40% of the national infrastructure project’s total capital demand.
With US$1 billion, Vietnam can build up to 300 km of expressway under the PPP model, instead of just 100 km using the public investment form, they noted.
The Southeast Asian country plans to invest a total of VND350 trillion to build expressways across the country by the end of 2020. (chinhphu.vn)
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