Unlocking the Roadblocks: Navigating the Challenges of the Tân Phú – Bảo Lộc Highway

The Tan Phu – Bao Loc highway project, spanning 66 km across Lam Dong and Dong Nai provinces (with 55 km in Lam Dong and 11 km in Dong Nai), is a key component of the larger Dau Giay – Lien Khuong highway, totaling over 200 km in length. The Lam Dong provincial government serves as the authorizing agency for this project.

In August 2020, a consortium of investors, including Deo Ca Group (as the representative), Hung Thinh Group, and Nam Mien Trung Group, proposed to develop the Tan Phu – Bao Loc highway under a public-private partnership (PPP) model. This proposal came at a time when the real estate market was thriving, and the Lam Dong provincial authorities had high hopes for the project, aiming for a groundbreaking in 2023 and completion by 2025. However, these plans have yet to materialize.

According to the capital mobilization plan agreed upon during the pre-feasibility study phase (with a total investment of VND 17,200 billion), the consortium members proposed that their partners and banks would provide funding for the project. Unfortunately, due to various reasons, investors from the Hung Thinh Group, Nam Mien Trung Group, and Nam A Bank have had to withdraw their participation due to financial difficulties.

Despite these setbacks, Deo Ca Group has remained committed to the project over the past four years, providing funding for the project proposal (pre-feasibility study report) and continuing to work on the feasibility study report. Representing Deo Ca Group, Mr. Ho Minh Hoang, Chairman of the Board, expressed their determination to fulfill their responsibilities as the leading investor in the consortium. With a proven track record in successfully delivering PPP projects like Cam Lam – Vinh Hao and more challenging ventures such as Dong Dang – Tra Linh and Huu Nghi – Chi Lang, Deo Ca Group is committed to contributing the required equity and exploring feasible financial solutions.

During the meeting with Lam Dong provincial leaders on September 4th, Mr. Hoang requested the Ministry of Finance to issue guidance clarifying the regulations in Decree 78/2023/ND-CP regarding the equity ratio for PPP projects. He also sought a commitment from the Vietnam Development Bank (VDB) to provide credit financing based on the financial plan approved by the inter-sector appraisal council and the Lam Dong provincial authorities. Alternatively, if VDB is unable to provide credit for the project, Deo Ca Group requested the Deputy Prime Minister to direct the State Bank to coordinate with TPBank, BIDV, and Agribank to jointly finance the project.

Additionally, Mr. Hoang emphasized the need for coordination between the provincial authorities and the investor regarding rest stops and compliance with new technical regulations, such as the application of Building Information Modeling (BIM) in design and construction, as stipulated in the Law on Roads 35/2024/QH15 and Decision 258/QD-TTg of the Prime Minister.

At the meeting, Deputy Prime Minister Tran Hong Ha instructed the Lam Dong provincial authorities, the Ministry of Planning and Investment, and the Ministry of Finance to report to the Prime Minister and the Government about the challenges in obtaining loans under Decree 78. He also requested them to propose amendments to the Decree to align it with the Law on Investment in the form of PPP to enhance the project’s attractiveness to investors. The Deputy Prime Minister further directed relevant ministries, localities, and commercial banks to facilitate the investor’s access to capital for the project.

The Deputy Prime Minister emphasized the importance of incorporating rest stops into the design of new highways, acknowledging the shortcomings of recently completed highways that lacked these facilities. He also stressed the mandatory implementation of Building Information Modeling (BIM) in this project, ensuring that the investor need not propose its application.