Vietnam’s frist PPP projects kicks off
Foreign investors are “very interested” in Vietnam’s first public-private partnership (PPP) project, the Dau Giay-Phan Thiet highway, after a series of preferential policies have been announced, VietNamNet Bridge reported on September 23.
On September 19, the Ministry of Transport and the World Bank held a meeting with foreign investors on the project. Previously, three workshops were held in India, Korea and Singapore in July, attracting “hundreds of foreign investors.”
The fourth workshop attracted 36 major investors which are “well-know groups” in the field of building infrastructure, mainly from France, India, the Philippines and Singapore, the report said.
There will be a series of incentives for investors who win the bid. Specifically, a non-refundable grant from the World Bank’s Viability Gap Fund (VGF) will be available to the bid winner. In addition, investors will not need external commercial loans because the World Bank will provide another loan from the International Bank for Reconstruction and Development fund, with a cmuch lower interest rate than commercial loans.
For the government of Vietnam, in addition to making a legal framework for the project, will also be fully responsible for the site clearance for the project, with funding from the state budget of $107 million.
The local investor into the PPP projects is Bitexco group. The second investor can be one or a group of up to three companies with 40 per cent of capital contribution.
The Dau Giay-Phan Thiet expressway project is located in the Southeastern region with four lanes and a length of 100 kilometers at a total investment of $757 million. The highway has strategic importance for connecting economic centers from Ho Chi Minh City to Phan Thiet. After the road is put into operation, it is expected to reduce congestion on the main Highway 1A.
Once the highway is completed, the project investors will have about 30 years to manage the road before handing it back to the Ministry of Transport. Deputy Minister Nguyen Ngoc Dong said the toll on this highway will not exceed the current ceiling level.
Foreign investors are "very interested" in Vietnam's first public-private partnership (PPP) project, the Dau Giay-Phan Thiet highway, after a series of preferential policies have been announced, VietNamNet Bridge reported on September 23. On September 19, the Ministry of Transport and the World Bank held a meeting with foreign investors on the project. Previously, three workshops were held in India, Korea and Singapore in July, attracting "hundreds of foreign investors." The fourth workshop attracted 36 major investors which are "well-know groups" in the field of building infrastructure, mainly from France, India, the Philippines and Singapore, the report said. There will be...
Foreign investors are “very interested” in Vietnam’s first public-private partnership (PPP) project, the Dau Giay-Phan Thiet highway, after a series of preferential policies have been announced, VietNamNet Bridge reported on September 23.
On September 19, the Ministry of Transport and the World Bank held a meeting with foreign investors on the project. Previously, three workshops were held in India, Korea and Singapore in July, attracting “hundreds of foreign investors.”
The fourth workshop attracted 36 major investors which are “well-know groups” in the field of building infrastructure, mainly from France, India, the Philippines and Singapore, the report said.
There will be a series of incentives for investors who win the bid. Specifically, a non-refundable grant from the World Bank’s Viability Gap Fund (VGF) will be available to the bid winner. In addition, investors will not need external commercial loans because the World Bank will provide another loan from the International Bank for Reconstruction and Development fund, with a cmuch lower interest rate than commercial loans.
For the government of Vietnam, in addition to making a legal framework for the project, will also be fully responsible for the site clearance for the project, with funding from the state budget of $107 million.
The local investor into the PPP projects is Bitexco group. The second investor can be one or a group of up to three companies with 40 per cent of capital contribution.
The Dau Giay-Phan Thiet expressway project is located in the Southeastern region with four lanes and a length of 100 kilometers at a total investment of $757 million. The highway has strategic importance for connecting economic centers from Ho Chi Minh City to Phan Thiet. After the road is put into operation, it is expected to reduce congestion on the main Highway 1A.
Once the highway is completed, the project investors will have about 30 years to manage the road before handing it back to the Ministry of Transport. Deputy Minister Nguyen Ngoc Dong said the toll on this highway will not exceed the current ceiling level.
