(NLĐO) – Deo Ca Group is focusing resources to complete the projects that are under implementation, including Trung Luong - My Thuan and only bid in North - South expressway when ensuring resources.
On October 25, Mr. Tran Van The, Vice Chairman of the BOM in charge of investment - Deo Ca Group, said that at present, Deo Ca does not necessarily have to invest in North-South Expressway projects in the East. Deo Ca Group makes this point according to two groups of reasons.
We just only invest when risk is under control
Mr. Tran Van The: "Deo Ca is fully aware of the great value of the North - South Expressway projects that the Government is opening the bidding. Deo Ca does not deny responsibility to invest in these projects, considering this is valuable opportunity to continue growing. But with a sense of responsibility and seriousness, Deo Ca will actively invest in North-South expressway projects once the on-going projects are completed and conditions for new project are well prepared "
Firstly, the mechanism related to BOT transport projects is still difficult and risky for investors. Typically, the interest rate in the bidding documents is very low (7.6% / 1 year) compared to the current commercial bank interest rates (about 11.5% / year). This will result in irreparable credit. In addition, commitments of State agencies (Party A) are often detrimental to investors (Party B). This problem has not been removed yet.
Secondly, Deo Ca Group must focus all efforts to best complete the on-going transport projects such as Trung Luong - My Thuan, Huu Nghi - Chi Lang, Dong Dang - Tra Linh and Hai Van 2 tunnel.
Deo Ca Group's leaders determined when considering their own equity ability, the people's share of fee collection, the bank unanimously accompanies, especially the State agency to ensure in compliance with the commitments in the signed contract, Deo Ca will do in the bidding.
Mr. Tran Van The said: "We consulted experts and advisors to agree on the view of Deo Ca not focusing on bidding for North - South Expressway projects in the East. We are aware of investing of these projects is the responsibility and honor of "domestic" enterprises to important projects of the country, however, Deo Ca will give priority to focus on fulfilling the projects that the Group is currently implementation, instead of spreading investment, we only consider the option to participate in building North - South expressway when fully assessing the level of risks and the ability to control the risks of mechanisms, approaching to credit, conflicts of interest ... ".
Focus on doing well on current projects
Deo Ca Group has successfully implemented many large road traffic projects along the country recognized by the society such as the project of open National Highway 1, section through Khanh Hoa province; Deo Ca tunnel project through Khanh Hoa and Phu Yen provinces; project on Cu Mong tunnel through Phu Yen and Binh Dinh provinces.
Deo Ca Group has just opened the technical traffic project of Bac Giang - Lang Son expressway connecting Bac Giang and Lang Son provinces in late September. This project is in the process of testing the load, executing the final items as well as completing the necessary procedures to put into operation, serving the travel needs of the people.
Currently, this investor is continuing to accompany the Ministry of Transport (MOT) and localities to carry out the projects: Expansion of Hai Van tunnel connecting Thua Thien Hue province with Da Nang city (expected to be completed in the fourth quarter of 2020), Trung Luong - My Thuan expressway in Tien Giang province (expected to be completed in the second quarter of 2021), Huu Nghi - Chi Lang expressway in Lang Son province, proposing project investment Dong Dang - Tra Linh expressway linking Lang Son and Cao Bang provinces.
"Not long ago, at the Trung Luong - My Thuan project site, we committed to the Prime Minister, promising more than 20 million people in the Mekong Delta to complete the project in 2021. The remaining time is not much, the problem of credit capital has not been cleared, as the company administration and project management, we must make every effort to solve the problems with the parties to bring the project finished on time ... "- said Mr. Tran Van The.
In Hai Van, Deo Ca Group is implementing complete steps to put the second tunnel into operation in 2020 as planned, realizing the dream of Vietnamese people to conquer dangerous passes to the South Central region, North-South traffic does not have to pass.
"We are aware of the efforts, pursuing in order to hope to connect the northern roads of the country as Huu Nghi - Chi Lang is going to a dead end, or meeting the wishes of Cao Bang people with 95% of the population number is ethnic minorities and the nation's expectation of the expressway connecting Dong Dang - Tra Linh "- Mr. Tran Van The expressed.
According to Mr. The, a project that reaches 99% of the workload is still an unfinished project. Any contractor, any link with complacent attitude, loosen the construction immediately will be handled. Deo Ca Group is implementing not a project but a series of projects. Therefore, the group will have to focus efforts to control well until the completion of projects on schedule, quality, assurance of reputation, meeting the beliefs and expectations of the Government and people, like the works the corporation has done before.
November 2020: Completing bidding documents for North-South Expressway
The Project Management Unit (PMU) under the Ministry of Transport has simultaneously sent an application for prequalification to a wide range of domestic investors in bidding for 8 North-South expressway projects, after canceling the international bidding.
Information from the Ministry of Transport said that right after opening the invitation for prequalification to select the North - South express contractor, the domestic investors quickly joined, many big names in the field of transport infrastructure construction noted.
According to Mr. Nguyen Viet Huy, Deputy Director of PPP Department, Ministry of Transport, after the PMU issued the invitation for prequalification, the minimum time for investors to prepare the application is 30 days, Bid opening is expected in November 2019.
Meanwhile, the Bidding Law and Decree 30/2015 stipulate the time to evaluate prequalification applications is about 30 days; appraisal and approval time is about 40 days. It is expected that prequalification of investors will be completed in February 2020. After finishing the prequalification, the Ministry of Transport will carry out a tender to select investors for 8 North-South PPP projects.
In April 2020, the Ministry of Transport will issue bidding documents. Investors have a minimum time of 60 days to prepare bids, expected to close bids in June 2020. The time limit for bidding evaluation is about 90 days and for evaluation and approval of bidding results is about 50 days. If favorable, the project can complete the bidding in November 2020.
