“The Prime Minister’s Attention Sought: Lâm Đồng’s Visionary Highway Projects”

On the afternoon of August 25, Prime Minister Pham Minh Chinh and his entourage worked with the Standing Committee of Lam Dong Provincial Party Committee.

Reporting to the Prime Minister’s working group, Mr. Tran Dinh Van, Permanent Deputy Secretary of the Lam Dong Provincial Party Committee, said that up to now, the provincial budget revenue has reached nearly VND 8,293 billion, equivalent to 58.61% of the local estimate. Of which, tax and fee revenue reached more than VND 4,525 billion.

The province’s tourism industry has welcomed 6.8 million visitors so far, up nearly 13% over the same period, including more than 5 million staying guests and 396,000 international visitors. Lam Dong’s total export turnover reached nearly US$664 million. The province’s forest coverage rate is 54.37%.

Regarding the expressway projects connecting Lam Dong with the Southeastern and South-Central regions, the provincial leaders proposed several recommendations related to three projects: Tan Phu – Bao Loc, Bao Loc – Lien Khuong, and Nha Trang – Da Lat expressways.

Specifically, Lam Dong province proposed that the Prime Minister consider and provide additional support from the central budget of VND 2,410 billion and allow the application of a revenue-sharing mechanism for the Tan Phu – Bao Loc Expressway project. They also requested additional support from the central budget of VND 922 billion for the Bao Loc – Lien Khuong Expressway project.

The province also proposed that the Prime Minister consider and approve the adjustment of the investment policy for the Tan Phu – Bao Loc Expressway project, including:

– Adjusting the route direction of 4 sections with a total length of 35.66 km out of 66 km;

– Adjusting the land use requirements according to the adjusted route and the framework of compensation, support, and resettlement policies;

– Updating the area of forest land use conversion according to the adjusted route;

– Updating the total investment, compensation, site clearance, and resettlement costs according to current regulations;

– Adjusting and supplementing the state capital participation in the project with an amount of VND 2,410 billion from the central budget;

– Supplementing the revenue-sharing mechanism according to Clause 2, Article 2 of the PPP Law.

Regarding the overlap between the expressway project and the Planning for Exploration, Mining, Processing, and Use of Minerals for the period of 2021-2030, with a vision to 2050 (Decision No. 866/QD-TTg dated July 18, 2023), the leaders of Lam Dong province suggested that due to the small reserves and area, the Prime Minister should allow the implementation of the two projects according to the surveyed route and the feasibility study report that has been submitted to the competent authorities for appraisal, without the need to exploit bauxite.

The Nha Trang – Da Lat Expressway, with a total length of 85 km, will connect the North-South Expressway in Khanh Hoa province with the Dau Giay – Lien Khuong Expressway in Lam Dong province. It is designed with four lanes and will be invested after 2030.

According to the leaders of Lam Dong province, the preliminary financial calculation for the project shows that with the scenario of the state providing maximum support of 50% of the total investment according to Clause 2, Article 69 of the PPP Law, the project will not be financially effective, with a long payback period (over 48 years). This will make it challenging to attract investment capital and credit institutions.

In order to ensure financial efficiency, facilitate the attraction of investment capital, improve the feasibility of the financial plan, and shorten the payback period (to about 27 years), the state’s capital participation in the project needs to be increased to 70% of the total investment.

To have a basis for investment research and early implementation of the project, the two provinces of Lam Dong and Khanh Hoa proposed that the Prime Minister allow the investment in the construction of the Nha Trang – Da Lat Expressway before 2030, approve the state’s support of 70% of the investment capital, and assign the People’s Committee of Khanh Hoa province as the competent authority to implement the project under the public-private partnership mode.

Regarding the proposals of Lam Dong province, Mr. Le Anh Tuan, Deputy Minister of Transport, said that they are working with the province to find all sources of capital to support the implementation of the expressway projects. The two projects of Tan Phu – Bao Loc and Bao Loc – Lien Khuong have been approved by the State Appraisal Council, and the adjustments proposed by Lam Dong province are appropriate.

“However, it is necessary to coordinate with the Ministry of Finance and the Ministry of Planning and Investment to calculate and arrange capital sources for each stage accordingly,” said Mr. Tuan.

Mr. Do Thanh Trung, Deputy Minister of Planning and Investment, requested Lam Dong and Khanh Hoa provinces to coordinate in calculating the specific investment stages, budget allocation for the Nha Trang – Da Lat Expressway project. He also asked Lam Dong province to clarify the investment and capital recovery phases.