Vietnam signs contract of third PPP section of North-South Expressway

July 31, 2021 | 13:12

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The Ministry of Transport, DeoCa Group, and a consortium of investors on July 30 signed a build-operate-transfer (BOT) contract for the Cam Lam-Vinh Hao section of the Eastern Cluster of the North-South Expressway.

Vietnam signs contract of third PPP section of North-South Expressway

The contract signing ceremony of the third PPP section under the North-South Expressway

The Cam Lam-Vinh Hao section is one fo three public-private partnership (PPP) sections under the Eastern Cluster of the North-South Expressway. After the contract signing, Cam Lam-Vinh Hao will enter the phase of credit arrangement and then construction.

According to the feasibility study, the section has a total length of 78.5km, starting from Cam Thinh commune of the southern central province of Khanh Hoa to Vinh Hao commune of the southern central province of Binh Thuan.

The Cam Lam-Vinh Hao section has a total investment capital of nearly VND8.93 trillion ($388.26 million), with VND3.78 trillion ($164.34 million) coming from investors and about VND4.2 trillion ($182.6 million) to be sourced from the state.

The section, together with other sections of the Eastern Cluster will help increase transportation capacity, connecting south-central and south-eastern economic hubs and boosting regional trade, thus promoting regional socio-economic development.

Addressing the signing ceremony, Deputy Minister of Transport Le Anh Tuan said that due to state budget constraints and the negative impacts of COVID-19, involvement of businesses in transport projects, including expressways, is essential to support national development.

“The MoT pledges to support investors and businesses and help them deal with possible problems to accelerate development and ensure the benefits of the state, businesses, and the people,” he noted.