According to the Ministry of Transport, in comparison with the method of public investment and the public-private partnership (PPP), the assignment of project implementation for VEC aligns with assigning asset management plan for VEC in the upcoming time via charter capital increasing will avoid the use of public investment funds, shorten implementation time and prevent interest conflicts between VEC and new entities when performing the investment by PPP method.
Currently, VEC has already allocated all available resources with over VND9,400 billion (US$371 million) to complete the Ben Luc - Long Thanh expressway project.
Therefore, in order to provide VEC with sufficient capital to expand the Ho Chi Minh City - Long Thanh expressway, the authorities need to consider deferring the repayment of principal and interest of nearly VND4,000 billion (US$158 million) which was prepaid to pay bonds by the Ministry of Finance from the period of 2022-2026 to 2031-2034.
As for commercial loan mobilization, the Commission for the Management of State Capital at Enterprises (CMSC) has proposed a plan to supplement VEC's charter capital with VND38,251 billion (US$1.5 billion) for the period of 2024-2026, pending approval from relevant ministries.
According to the proposal, the expansion of Ho Chi Minh City – Long Thanh Expressway will have a total length of nearly 22 kilometers with an estimated total investment of approximately VND14,955 billion (US$590 million). Of which, the figures include VND5,555 billion (US$219 million), accounting for 37 percent in equity and VND9,400 billion (US$371 million), occupying 63 percent in commercial loans.
The VEC will mobilize 100 percent of the funds for the project and manage its operation along with toll collection.
The Central budget and local budgets in Ho Chi Minh City and Dong Nai Province will be used for land clearance. If the authorities approve, the project will be prepared from 2024 to 2025 and executed from 2025 to 2027.
