Expressway developer frets over high cost

The management unit of a project to build an expressway linking the central beach cities of Phan Thiet and Nha Trang is worried about the estimated cost totalling $2 billion.

According to the project drawn up by a consortium of two local consulting firms, Construction Survey-Design and Consultancy and a unit of Cienco 8, the 235-kilometer road will start in Dien Khanh District in Khanh Hoa and link up to the upcoming Dau Giay-Phan Thiet expressway. The six-lane expressway will pass through three provinces – Khanh Hoa, Ninh Thuan and Binh Thuan – and allow for vehicles to travel at a maximum speed of 120 kilometres per hour.

Project Management Unit 6 (PMU 6) under the Ministry of Transport, which has been named manager of the expressway, said the most important factor is how to mobilise such a huge amount of capital for the project. PMU 6 has worked with the consultants to find the best way of attracting funds from international donors and other sources.

The expressway will be part of the north-south expressway whose several sections between Dau Giay in Dong Nai Province and Can Tho City are under construction. Once in place in 2020, it will create a complete expressway route stretching from HCM City to Nha Trang City, passing through most economic hubs and key air, rail, sea transport routes in the southern and south central regions.

The transport ministry encourages investors to take part in infrastructure projects under the public-private partnership (PPP) form to help cope with financial constraints faced by the public sector. However, a legal framework for this investment method has not yet been completed. – Saigon Times

Tags: Dau Giay-Phan Thiet expressway

Posted by VBN on Aug 18 2010. Filed under Infrastructure. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry