On May 24, 2021, Deo Ca Group worked with the Standing Board of Binh Phuoc Provincial Party Committee on investment solutions for Ho Chi Minh - Thu Dau Mot - Chon Thanh expressway.
Attending the meeting, on behalf of Binh Phuoc province, there were Mr. Nguyen Van Loi - Secretary of the Provincial Party Committee, Ms. Huynh Thi Hang - Permanent Deputy Secretary/Chairman of the Provincial People's Council, Ms. Tran Tue Hien - Chairman of the Provincial People's Committee and leaders of departments and agencies of Binh Phuoc province. On the side of Deo Ca, there were Mr. Ho Minh Hoang - Chairman of the Board of Management and representatives of the Advisory Council, the Board of Management, the Executive Board and specialized boards of the Group.
The overview of the meeting
According to the planning of Vietnam's expressway network up to 2020, orientation to 2030 approved by the Prime Minister in Decision No. 326/QD-TTg dated March 1, 2016, the expressway from Ho Chi Minh City - Thu Dau Mot (Binh Duong province) - Chon Thanh (Binh Phuoc province) has a total length of about 69 km, is expected to invest in a scale of 6-8 lanes, with a total investment of about 24,150 billion VND and implementation before 2030.
Based on the planning plan, Deo Ca Group has researched, analyzed and evaluated the criteria to adjust the route plan, scale and total investment. At the meeting, Deo Ca Group presented two route options for the expressway so that the Standing Board of Binh Phuoc Provincial Party Committee has a basis for comparison. In option 1, the project has a length of 33 km, the scale of 4 car lanes, the total investment is expected to be 6,900 billion VND. In option 2, the project has a length of 67 km, a scale of 4 car lanes, total investment of 21,236 billion VND and is divided into 2 component projects.
Discussing with the Standing Board of Binh Phuoc Provincial Party Committee, Mr. Ho Minh Hoang shared with provincial leaders the practical experiences learned from the projects that Deo Ca Group has been implementing to advise the province to organize the implementation of the project. when there are still many obstacles in implementing PPP Law, the state budget is limited, and credit capital for BOT transport infrastructure investment is increasingly constricted, the optimal solution is to follow the new “3 P” method.
Specifically, P1 - State budget capital, showing the political determination of local leaders. To orient the capital mobilization, there is a need to unify the route plan, the structure of local and central capital and the other capital. At the same time, establish project steering committees of three provinces headed by the Secretary of Binh Phuoc province and create investment fund. P2 - Equity, select investors with experience and financial capacity to jointly plan and manage with the locality. P3 - Other mobilized capital, determining investment plan, capital needs and the potentials and advantages of the localities where the project goes through such as real estate, industrial urban areas, hi-tech agriculture, services, logistics... to call for capital.
Secretary of Binh Phuoc Provincial Party Committee highly appreciates solutions that Deo Ca Group has studied
Mr. Nguyen Van Loi - Secretary of Binh Phuoc Provincial Party Committee highly appreciated the solutions that Deo Ca has studied and said that both options are effective because they significantly reduce the total investment compared to other previously suggested. The innovative and practical “3 P” model is the key to solving the problem of infrastructure investment in the context of a tight budget. “In a short time, Deo Ca Group has given very detailed, specific and valuable information and advice on how to do it. The report is both practical and summarizes practical experiences, I highly appreciate the advice and opinions of Deo Ca Group", Binh Phuoc Provincial Secretary emphasized.
With the two options proposed by Deo Ca Group, the Standing Board of Binh Phuoc Provincial Party Committee agreed to implement option 2. Mr. Nguyen Van Loi directed the departments to research to allocate the budget capital of Binh Phuoc province to participate 50% of the total state budget capital invested in the project.
By Minh Anh
