What Did Cao Bang Province and Deo Ca Group Propose to the Prime Minister Regarding the 121km Expressway Project, Invested with 23,000 Billion VND?

On November 14, during his working visit to the provinces of Lang Son and Cao Bang, Prime Minister Pham Minh Chinh conducted a field survey and inspected the progress of two expressway projects: Huu Nghi – Chi Lang (Lang Son) and Dong Dang (Lang Son) – Tra Linh (Cao Bang).

During the visit, the Prime Minister requested the completion of these two projects by 2025, contributing to the opening of the expressway from Cao Bang to Ca Mau in the following year.

This was the third time that Prime Minister Pham Minh Chinh has inspected these two projects. Accompanying the Prime Minister were members of the Central Party Committee: Minister of Transport Nguyen Van Thang, Secretary of the Cao Bang Party Committee Tran Hong Minh, and leaders of ministries, sectors, and local authorities of Cao Bang and Lang Son provinces.

As part of the working visit, Prime Minister Pham Minh Chinh also held a meeting with leaders of relevant ministries, sectors, local authorities, businesses, and banks regarding these two projects.

Regarding the Dong Dang – Tra Linh Expressway project, this is a public-private partnership (PPP) project led by Deo Ca Group. The project has a total length of 121km and commenced construction on January 1, 2024.

The project is divided into two investment phases with a total investment of more than VND 23,000 billion. Phase 1 involves the construction of over 93km with a total investment of VND 14,114 billion, of which more than 69% is funded by the state budget. Phase 2 will focus on the remaining 28km.

According to estimates, the project’s total output in 2024 will reach VND 1,010 billion, with a total disbursement of all sources of capital reaching VND 2,000 billion. This lays the foundation for the determination to open the route in 2025 and complete the entire project by the end of 2026.

According to information from Deo Ca Group, at the meeting with the inspection delegation, Mr. Tran Hong Minh, Secretary of the Cao Bang Party Committee, proposed to the Prime Minister for early approval of the adjustment of the investment policy for the project, increasing the ratio of state budget support to a maximum of 70% of the total investment in accordance with Resolution 106/2023/QH15.

Simultaneously, the Secretary of the Cao Bang Party Committee suggested implementing Phase 2 of the project in the form of a PPP with a similar mechanism to Phase 1, with state capital accounting for 70% of the total investment.

Additionally, Mr. Tran Hong Minh proposed selecting the investor through designated bidding and establishing a specific mechanism for mineral exploitation, as well as providing preferential loans from commercial banks.

Mr. Ho Minh Hoang, Chairman of the Board of Directors of Deo Ca Group and representative of the investing consortium, affirmed that the Dong Dang – Tra Linh project has entered a new phase. He emphasized the need for investors and related parties to commit to avoiding responsibility evasion, thus preventing the waste of time and resources of the State.

“We propose to the Prime Minister that if there is a problem of responsibility evasion at the competent authorities, we should consider handling options,” said Mr. Ho Minh Hoang.

Minister of Transport Nguyen Van Thang agreed with the investment plan for Phase 2 of the Dong Dang – Tra Linh project in the form of a PPP, with the state budget supporting 70% of the total investment and the investor arranging the remaining 30%, similar to Phase 1.

Also during this working visit, Prime Minister Pham Minh Chinh conducted a field trip to grasp the implementation of the Dong Dang – Tra Linh Expressway project and presented gifts to encourage the forces participating in the project at the end point of Phase 1 (Hanh Phuc commune, Quang Hoa district, Cao Bang province) and at the Dong Khe No. 2 Tunnel (Thuy Hung commune, Thach An district, Cao Bang province).