Deo Ca Group has just proposed Khanh Hoa province a plan to implement the Van Phong – Nha Trang expressway project.

Proposing to use more capital from the economic stimulus package

The Van Phong – Nha Trang expressway project was in the development plan of Vietnam’s expressway network up to 2030 approved by the Prime Minister in Decision 326 dated March 1st, 2016.

The project has a length of 83km, the first point will connect with Deo Ca tunnel at the southern intersection of Co Ma tunnel. This is one of the North-South expressway component projects prioritized for implementation in the 2021-2025 period.

Mr. Ho Minh Hoang, Chairman of Deo Ca Group spoke at the meeting with Khanh Hoa province yesterday (November 5).

Recently, Deo Ca Group has conducted a survey of alignment, intersection connection points with the local road planning, and at the same time reviewed the local material mine planning in the area that the highway passes through to control mining license, reserves, transportation distance to the construction site, etc.

According to research, the Van Phong – Nha Trang expressway has a total investment of more than 13,500 billion VND, invested in the form of a public-private partnership (PPP). Initially, the structure of capital sources for project implementation included: State budget capital contributed about 47.6%, the rest was mobilized by investors, the payback period was 21 years.

However, recently, Deo Ca Group coordinated with the Ministry of Transport to propose using more capital from the economic stimulus package. Specifically, the State budget capital (State budget) involved in the project is more than 61%, the payback period is reduced to 15 years.

A representative of Deo Ca Group said that in the context of a limited state budget and a prolonged epidemic, credit institutions tightened lending when the existing inadequacies of the Government had not been resolved. With a large scale of project investment, the route spanned through difficult and dangerous terrain, and the local budget was limited.

Besides, the exploitation potential to call for investment is not clear, etc. Deo Ca Group proposed the optimal capital structure solution to implement the project according to the “3 P’s” method including state budget capital, equity and other mobilized capital in the form of shares, bond issuance, business cooperation contract (BCC), credit, etc. from domestic and foreign individuals and organizations.

Forming the golden road, create golden value

Previously, at the North – South expressway project of the Cam Lam – Vinh Hao section, although being the last unit signing the contract, up to now, Deo Ca Group has basically mobilized capital to organize the construction. Specifically, investors actively mobilized nearly 2,100 billion dong through BCC with units.

Mr. Ho Minh Hoang – Chairman of Deo Ca Group said in the extraordinary general meeting of shareholders of JSC Deo Ca transport infrastructure investment (a member unit of the Group) has just taken place in early November 2021: “with the goal of forming a golden road to create golden value and turn human flow into cash flow”. As a result, the company’s charter capital was voted by more than 23,000 shareholders to raise to 5,347 billion dong, with the ratio 99.97% consensus, almost absolute.

Mr. Nguyen Hai Ninh, Secretary of Khanh Hoa Provincial Party Committee highly appreciated Deo Ca Group’s inquisitive, serious and frank working spirit. “Van Phong is one of the developing economic zones. If the Van Phong – Nha Trang expressway is actualized in the period of 2021 – 2025, I am confident that it will bring Van Phong economic zone become outstanding and attract domestic and foreign investors,” Mr. Ninh said and added that Khanh Hoa province will create all conditions, ready to share and coordinate with investors to deploy in the best and most convenient way.

The Van Phong – Nha Trang expressway project is expected to create a driving force for local socio-economic development in general and Van Phong Economic Zone in particular. At the same time, the expressway will meet transportation needs and complete the North-South expressway in the East, connecting key economic regions such as the Central Highlands.

BY DINH QUANG

Souce: Báo Giao thông