(SGT-HCMC) The HCMC government is now seeking foreign investors for a project to construct the HCMC-Long Thanh-Vung Tau expressway as local contractors are deemed financially incapable for the capital-intensive project.
The city government will invite foreign investors to the project, whose development scheme has been approved by the Prime Minister, said city Party chief Nguyen Minh Triet at a recent meeting. Previously, local companies have been given priority to carry out the project.
"Earlier, a Singaporean company had shown keen interest in the project but the Transport Ministry wanted the project for local companies only," Triet said.
But so far no local companies have expressed interest, according to deputy minister Ngo Thinh Duc.
Under such a circumstance, the city government has sought the Government's nod to let foreign investors in for the project under the build-operate-transfer(BOT) form.
The Prime Minister has endorsed the proposal and also ordered that the project be given priority over another expressway from HCMC to Dau Giay in Dong Nai Province.
The less-favored HCMC-Long Thanh-Dau Giay expressway is designed to be 53.4 kilometers long and estimated to require more than VND3.37 trillion, or US$217 million. No local companies have shown an interest.
In 1996, Korea's Daewoo conducted a study on building the HCMC-Long Thanh-Vung Tau expressway totaling 95 kilometers and needing some US$500 million.
The Korean corporation then wanted to implement the project under BOT and proposed the Government to give a partial funding and to allow it to exploit some areas along the expressway for commercial projects.
However, the Government turned it down.
Daewoo then went bankrupt.
With the expressway in place, the distance from the city to Vung Tau will be cut short by 27 kilometers as compared to taking the Hanoi Highway and National Highway 51 as currently.
The new expressway will cut through industrial parks, new urban centers and ports in Dong Naiand BaRia-Vung Tau Province