MoT might switch to open bidding for North-South Expressway

The preliminary selection of international bidders for the North-South Expressway may be cancelled

Based on current law, especially the Bidding Law (Article 15), for eight component projects approved by the National Assembly in the form of public-private partnership (PPP), the Ministry of Transport (MoT) has conducted a preliminary selection of investors in the form of international bidding.

By the end of July 2019, two months after issuing the preliminary invitation documents, the bid solicitor (project management boards of the MoT) has received 60 applications.

According to the results of the evaluation of prequalification dossiers, there were four projects where investors could not pass the prequalification round, two projects with only one investor passing prequalification, and one project with two investors, and another project with three investors passing. This means only a handful of investors have passed the prequalification and there is little competition for the component projects.

"The MoT shall decide whether to cancel the preliminary selection and adjust the prequalification invitation dossiers and offer the eight PPP projects up for open bidding," the MoT stated on its website.

The eight component projects of North-South Expressway are scheduled to be built in 2017-2020 in the form of PPP and build-operate-transfer (BOT) contracts. They are the 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-Dong Nai sections.

The total investment capital of these eight projects is estimated at VND104.07 trillion ($4.52 billion), including VND40.36 trillion ($1.75 billion) state capital for land clearance and resettlement.

Currently, the MoT is urgently reviewing and finalising relevant legal procedures to implement the projects. All information on the next steps will be promptly announced by the MoT through the media.