The Ministry of Construction has recently submitted its opinion to the Ministry of Finance, proposing that the Vietnam Expressway Corporation (VEC) be designated as the managing agency for the expansion project of the Cau Gie – Ninh Binh Expressway.
In the documents submitted to relevant ministries, VEC outlined its exploration of various investment models for the expansion project. After evaluating the feasibility of each option, the company leaned towards public investment. This choice is driven by the road’s dual nature: it serves the public interest while aligning with VEC’s responsibility and capacity to mobilize resources as the current operator and manager.
According to the Ministry of Construction, the unique aspect of the Cau Gie – Ninh Binh Expressway lies in VEC’s significant investment in its initial construction and ongoing toll collection for capital recovery. Entrusting VEC with the expansion ensures continuity in construction, management, and operation, while avoiding complex legal procedures associated with changing investment models or assigning the project to another entity.
Cau Gie – Ninh Binh Expressway. Photo: VEC.
The Ministry of Construction also noted that a public-private partnership (PPP) under the BOT model is less feasible due to the project’s nature. Meanwhile, investment under the Law on Investment introduces complexities related to land management and ownership of post-investment assets. Public investment is thus deemed the most suitable option to meet the urgent expansion timeline.
The Ministry of Construction has urged the Ministry of Finance, which oversees VEC and is responsible for relevant legislation, to conduct a comprehensive evaluation of all options to identify the most effective approach. The Ministry of Construction emphasized that assigning VEC as the managing agency is legally and practically justified, given the company’s successful track record in similar large-scale projects.
The Cau Gie – Ninh Binh Expressway (Km210+000 – Km260+030), spanning 50 km, has been operational since 2012 with a 4-lane configuration. VEC has identified that the expressway is currently at full capacity and risks becoming a bottleneck on the North-South Eastern Expressway, as the connecting segments—Phap Van – Cau Gie and Cao Bo – Mai Son—have been or are being expanded to 6 lanes. In late October, VEC submitted a proposal to the Prime Minister, requesting to be appointed as the managing agency for expanding the expressway from 4 to 6 lanes.
The Cau Gie – Ninh Binh Expressway has long been operating at full capacity.
According to the National Road Network Plan, the expressway will be expanded in phases to meet long-term demand. VEC proposes an initial expansion to address medium-term needs, with further upgrades to the full planned capacity to be considered once conditions are favorable.
The company also outlined a resource mobilization strategy combining state budget funds with self-raised capital to ensure the project can commence at an appropriate time, avoiding prolonged delays that could strain transportation infrastructure.
The Ministry of Construction stressed the urgency of expanding the Cau Gie – Ninh Binh Expressway, not only to alleviate congestion but also to enhance the capacity of the entire North-South Eastern Expressway, thereby fostering socio-economic development in southern gateway provinces.
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