Vietnam is considering selling its ownership in several major highways to help pay for more road projects.
The Ministry of Transport (MoT) recently said that the government’s infrastructure investor body Vietnam Infrastructure Development and Finance Investment (VIDIFI), would sell 70% of its ownership in the Hanoi–Hai Phong Highway project to a buyer from India.
The move is part of a strategy that could see Vietnam sell off more of its investment in highway projects, either under construction or completed, and re-invest the capital in other road initiatives.
<%$Linker:2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 oLinkExternal Vietnam Breaking News Visti Vietnam Breaking News page false http://english.vietnamnet.vn/fms/business/114980/vietnam-may-sell-highway-projects-to-foreign-investors.html false false %> reported that the MoT official made the comment at a recent meeting the ministry had with the 3177 Vietnam Expressway Corporation (VEC), another major investor and operator of highways, including maintenance work and handling of tolls.
Five highway projects that could come up for sale are Ho Chi Minh City - Long Thanh, Da Nang - Quang Ngai, Ben Luc - Long Thanh, Cau Gie - Ninh Binh and Noi Bai - Lao Cai.
“It is the right time to change our viewpoint about investment in infrastructure. You can sell highway projects after you finish them. There are many foreign investors who are interested in the projects,” a MOT official said in Tien Phong.
Vietnam has constructed highways under build-operate-transfer (BOT) agreements, public-private partnerships (PPP) and build and transfer (BT) contracts.
3260 World Highways <%$Linker:2 Internal <?xml version="1.0" encoding="utf-16"?><dictionary /> 2 15604 0 oLinkExternal reported in January Visit multi billion dollar vietnam transport projects to be supported by oda of japan Story false /categories/road-highway-structures/news/multi-billion-dollar-vietnam-transport-projects-to-be-supported-by-oda-of-japan/ false false %> that Vietnam had received around US$2.07 trillion between 2011 and 2013 from private investors for major transport infrastructure projects, in expansion of National Highway.
Work also is underway on upgrading the Gia Lai-Binh Dinh section of National Highway 19. The project is being carried out under the build-operate-transfer (BOT) model and is scheduled for completion during 2015. The project is costing $95 million and involves work to a 56km section of the route, with the concession package agreed under a 22-year deal.
The Ministry of Transport (MoT) recently said that the government’s infrastructure investor body Vietnam Infrastructure Development and Finance Investment (VIDIFI), would sell 70% of its ownership in the Hanoi–Hai Phong Highway project to a buyer from India.
The move is part of a strategy that could see Vietnam sell off more of its investment in highway projects, either under construction or completed, and re-invest the capital in other road initiatives.
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Five highway projects that could come up for sale are Ho Chi Minh City - Long Thanh, Da Nang - Quang Ngai, Ben Luc - Long Thanh, Cau Gie - Ninh Binh and Noi Bai - Lao Cai.
“It is the right time to change our viewpoint about investment in infrastructure. You can sell highway projects after you finish them. There are many foreign investors who are interested in the projects,” a MOT official said in Tien Phong.
Vietnam has constructed highways under build-operate-transfer (BOT) agreements, public-private partnerships (PPP) and build and transfer (BT) contracts.
Work also is underway on upgrading the Gia Lai-Binh Dinh section of National Highway 19. The project is being carried out under the build-operate-transfer (BOT) model and is scheduled for completion during 2015. The project is costing $95 million and involves work to a 56km section of the route, with the concession package agreed under a 22-year deal.
