On March 6, the People’s Committee of Quang Tri province announced that they have submitted Document No. 18/TTr-UBND to the Prime Minister proposing to apply specific mechanisms, policies, and budget support for the participation of PPP investment in the construction of the Cam Lo – Lao Bao expressway in Quang Tri province.
Accordingly, the People’s Committee of Quang Tri province requests the Prime Minister to consider submitting to the National Assembly the permission to apply specific mechanisms and policies for the PPP investment project of constructing the Cam Lo – Lao Bao expressway in Quang Tri province, with a state capital participation rate of 70% of the total investment.
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In the context of limited resources in Quang Tri province, in order to complete the procedures and implement the project by 2030 according to the approved planning and orientation, the People’s Committee of Quang Tri province proposes that the head of the Government pays attention to support and allocate funds from the central budget for the medium-term period of 2026-2030 as the state capital participation in the PPP investment project for the construction of the Cam Lo – Lao Bao expressway with a total capital of VND 9,608 billion. At the same time, the project should be added to the list of national key projects and priority projects in the transportation sector.
According to the feasibility study report of the PPP investment project for the construction of the Cam Lo – Lao Bao expressway recently completed by the People’s Committee of Quang Tri province, the project has a total length of 56 km, with the starting point connecting with the Cam Lo – La Son highway and the end point at the Lao Bao international border gate; passing through 4 districts: Trieu Phong, Cam Lo, Dakrong, Huong Hoa in Quang Tri province.
The road section invested in the project is completed with 4 lanes, a road pavement width of 24.75m, and a design speed of 100 km/h. The total investment of the project (excluding interest on loans during construction) is VND 13,726 billion. Specifically, the cost of land clearance for the project is VND 676 billion; construction cost is VND 10,643 billion; equipment cost is VND 222 billion; project management, consulting, and other costs are VND 1,086 billion; contingency cost is VND 1,099 billion.
The expected state budget capital to participate in the project is VND 9,608 billion (accounting for 70%); mobilized investor capital (Owner, loan capital, and other capital) is VND 4,581 billion (accounting for 30%). The project implementation time is from 2024 to 2028.
The project passes through the districts of Huong Hoa, Dakrong, Cam Lo, Trieu Phong, which have special difficult conditions, and according to the forecast, the traffic volume in the initial stage is not high, so the financial plan of the project when applied according to the provisions in Clause 2 of Article 69 of the Law on Investment under the PPP method (state capital participation rate in the project does not exceed 50% of the total investment) is not feasible, prolongs the capital recovery time, and faces difficulties in mobilizing capital from investors and credit institutions.
