Vietnam considers PPP mode for $819m expressway in Central Highland

The 105km route having 3 underground tunnels, with the longest tunnel running about 1.7km is expected to shorten travelling time between the two localities to just 1 hour.

Currently, it takes 4 hours to travelling by cars from Nha Trang to Buon Me Thuot in Central Highland. The project is expected to promote trade and tourism.

The Dak Lak - Khanh Hoa Expressway will solve the bottleneck for the socio-economic development of Dak Lak and the Central Highlands provinces.

In preliminary estimate, the 4-lane highway could have total cost at VND15 trillion ($646 million). With 6 lanes, the project will cost VND19 trillion ($819 million), according to information posted on a news website operated by Khanh Hoa provincial government.

Besides using State budget, the local governments are considering public-private partnership and other form of investment to satisfy the large investment capital demand for the project.

Local governments are recalculating the project. Funding could be proposed using State budget and public-private partnerships and other forms, told Nguoi Lao Dong Newspaper, Secretary of Dak Lak Provincial Party Committee, Bui Van Cuong, who is also member of Central Party Committee.  

The province could allocate land to enterprises to build industrial parks and residential areas in exchange of the expressway.

However, in order to calculate how to bid closely and how to have this road built with the best quality, the lowest price, the governments are calculating, Cuong added.

Source: Bao Khanh Hoa