According to information from the Hanoi People's Committee, by the end of the deadline for submitting the final application in 2022, only one investor, the T&T Group Joint Stock Company, is interested in the component 3 project of the Ring 4 Hanoi project.
Hanoi People's Committee has just issued Report No. 05/TTr- UBND to the Prime Minister and the Ministry of Planning and Investment on the appraisal of the feasibility study report on construction investment Component 3 - Construction investment expressway under the PPP mode of the Ring Road 4 Construction Investment Project - Hanoi Capital Region (component project 3).
Component 3 project has an estimated total investment capital of 56,520 billion VND, down 16 billion VND compared to the total investment approved in Resolution No. 56/2022/QH15 dated June 16, 2022 of the National Assembly. In which, the state capital participation is 26,730 billion VND (the central budget is 18,313 billion VND, the local budget is 8,417 billion VND); The capital arranged by the investor is VND 29,790 billion, accounting for about 52% of the total investment of component 3 projects.
Notably, the Hanoi People's Committee said that it had sent a document to the State Bank to direct 3 commercial banks, Vietcombank, BIDV and VietinBank to provide information on interest rates. However, as of January 19, 2023, Hanoi has not yet received an official reply from the banks.
Direction of the Ring Road 4 section through Hanoi city.
(Source: Hanoi People's Committee)
To ensure the progress of the submission and appraisal of the feasibility study report, the consulting unit reviewed the loan interest rate with two scenarios: interest rate 10.17%/year (determined at the time of October 2020) and the estimated interest rate in December 2022 is 11.2%/year. The interest rate of the loan at the present time will be updated by the consulting unit when there is an official reply from commercial banks.
The financial feasibility of the project is also assessed according to three capital cost alternatives. Specifically, option 1 - the return on equity is 11.77%/year and the interest rate on the provisional loan is 10.17%/year, similar to the step of the pre-feasibility study report of the project has been approved.
Option 2 - the return on equity is 11.77%/year and the interest rate on temporary loan is 11.2%/year. Option 3 - the return on equity is 13.3%/year and the interest rate on temporary loan is 11.2%/year.
According to option 1, the revenue of component 3 project ensures the ability to recover capital for BOT investors in about 22 years and 11 months of exploitation, corresponding to the cost of capital. With option 2, with the return on equity and interest on the loan, the revenue from fee collection to ensure the ability to recover capital for investors is about 29 years of exploitation. According to option 3, the payback period for investors is about 31 years of exploitation.
Leaders of the Hanoi People's Committee also informed that, for options 2 and 3, the total investment (including loan interest) of the project exceeds the total investment approved in the project's investment policy. judgment. On the other hand, the long fee collection period will not attract investors to participate in the project. Therefore, the Hanoi People's Committee recommends option 1 to report to relevant agencies for consideration and decision.
Previously, in October 2022, Hanoi Department of Planning and Investment issued a notice to survey investors' interest in component 3 project.
However, at the time of application deadline (December 11, 2022), only one investor, T&T Group Joint Stock Company, was interested. According to the provisions of Decree No. 35/2021/ND-CP detailing and guiding the implementation of the Law on Investment under the PPP method, the form of investor selection for component 3 projects is open bidding. in the country, does not conduct pre-qualification.
The investment project on construction of Ring Road 4 - Hanoi Capital Region includes 7 component projects, of which 3 projects carry out site clearance in the form of public investment, 3 projects invest in construction of parallel roads. (urban road) under the form of public investment and 1 investment project to build an expressway under the PPP method.
The total length of the project is about 112.8 km, including 103.1 km of Ring Road 4 and 9.7 km of the route connecting Noi Bai - Ha Long highway. The project will be cleared on a complete cross-sectional scale with a width of 90m to 135 m.
To invest in diverging highways with the scale of 4/6 lanes, speed limit of 80 km/h with a width of 17 m with 8 complete interchanges and expressway entrances and exits to ensure safe operation. safe and effective extraction. Invest in diverging parallel lines (discontinuous) with a scale of 12 m on each side.