$262 million project expected to reduce traffic and bolster socio-economic growth in local area.
The Vietnam Expressway Operations & Maintenance Company (VEC) has sent a proposal to the Ministry of Transport on plans for the first phase of the Bien Hoa - Vung Tau Expressway project, which is being conducted under the build-operate-transfer (BOT) form.
The 30 km four-lane highway is part of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway, passing through Ben Luc and connecting to National Highway No. 51.
Total investment is VND5.6 trillion ($262 million), of which VND639 billion ($29.7) is from VEC with the remainder coming from commercial loans.
VEC suggested the establishment of a joint stock company for the project, under Decree No. 15/2015/ND-CP dated February 14, 2015 on investment in the form of public-private partnerships. Site clearance is divided into sub-projects, to be conducted by the Dong Nai and Ba Ria Vung Tau people’s committees.
To ensure a return on investment, VEC recommended a toll of VND2,000 per km ($0.09) starting in 2019, increasing by 18 per cent in 2022 then 15 per cent every three years, for a payback period of 22 years.
The project is to begin construction this year and is expected to finish in 2018.
The Bien Hoa - Vung Tau Expressway project is hoped to boost economic growth and enhance the role of the Southern Key Economic Region. It should ease traffic congestion on National Highway No. 51 and increase the transport of cargo and passengers from Ho Chi Minh City to surrounding ports such as Vung Tau Port and Dong Nai Port and vice-versa.