A consortium led by Deo Ca Group has been selected as the investor to implement the first phase of the Dong Dang-Tra Linh Expressway project connecting Lang Son and Cao Bang provinces in northern Vietnam.
The consortium comprises Deo Ca Group, ICV Vietnam Investment and Construction JSC, Deo Ca Transport Infrastructure Investment JSC (HHV) and 568 Construction JSC.
The first phase of the project, with a total investment capital of VND14.17 trillion ($583.63 million), will be conducted in the public-private partnership (PPP) format.
On November 28, the National Assembly had passed a resolution piloting a number of specific mechanisms and policies on investment in the construction of road traffic projects, which allows the proportion of state capital in PPP projects to exceed 50% of the total investment.
Two projects that will pilot this mechanism are the Dong Dang-Tra Linh Expressway, which will have a state contribution ratio of 70%; and the Thai Binh coastal road, with 80%.
Tran Hong Minh, chief of Cao Bang province's Party Committee, said that competent state agencies have actively coordinated with ministries and sectors to make project investment policy adjustments and held negotiations to sign contracts with investors.
"Top priority should be given to this project,” he stressed, adding that Cao Bang province will start construction of the Dong Dang-Tra Linh PPP Expressway next spring.
Deo Ca Group chairman Ho Hoang Minh has asked for joint efforts by local authorities to help complete the project on schedule.
"Deo Ca Group will see this project as a field to train workers, engineers and managers. We will cooperate with universities and colleges to provide practical training for workers and engineers," he said.
The joint venture plans to apply the "3P+" capital mobilization model derived from 15 years of experience that the group has in investing, constructing, managing and operating large-scale traffic PPP projects.
Under this model, the project contractor also serves as the investor to implement it under EC (engineering and construction) and EPC (engineering, procurement and construction) contracts.
The "3P+" model also raises capital from diverse sources, increasing capital mobilization efficiency and minimizing capital-related risks throughout the project implementation process. P1+ is the state capital contribution, both central and local; P2+ is equity from private and state-owned enterprises; and P3+ is capital mobilized through credit, bonds, business cooperation contracts (BCC) and other sources.
Phase 1 of the Dong Dang-Tra Linh Expressway has a length of 93.35 kilometers, starting at the intersection of Tan Thanh border gate in Van Lang district, Lang Son province and ending at the intersection with National Highway 3 in Chi Thao commune, Quang Hoa district, Cao Bang province.
In the first phase, expected to be completed in 2026, the expressway will allow vehicles to run at a maximum speed of 80 km/h.
Deo Ca, known as the "Tunnel King" in Vietnam, is well known for building the Co Ma, Deo Ca, Cu Mong and Hai Van 2 tunnels. It has also built the Bac Giang-Lang Son Expressway; Trung Luong-My Thuan Expressway, and completed packages for major projects on the North-South Expressway.