Deputy PM calls for measures to attract funding for expressway projects

He said that Vietnam is trailing behind its target of having 2,000 kilometres of expressway in 2020 as only 1,400 kilometres have been put into operation, adding that the target will not be achieved until the end of next year.

According to the State Bank of Vietnam, it is hard to secure bank loans for expressway projects because they need huge amounts of capital with long borrowing periods, causing banks to be reluctant to lend.

For the five sub-projects to be implemented under public-private partnerships, each needs an average loan of VND3.1 trillion (about US$134 million), bidding documents show.

In order to achieve breakthroughs in infrastructure development for the 2021-2030 period, Vietnam needs to operate 3,000 kilometres of expressway by 2025, meaning another 1,300-1,500 kilometres must be completed in the next five years, which will require about VND260 trillion (US$11.3 billion), said Dung.

In the meantime, only 30% of the VND350 trillion (US$15.2 billion) allocated to the Ministry of Transport in the next five years will be dedicated to expressway construction.

As such, an additional VND160 trillion (US$6.9 billion) is needed to realise the target of having 3,000 kilometres of expressway in service by 2025.

The Deputy PM stated that if banks are to take part in such projects, they must be attractive.

He asked the ministries and agencies concerned to fine-tune the legal system so that duties and rights of stakeholders are clear and transparent.

The Ministry of Planning and Investment was required to quickly issue the documents guiding the implementation of the recently adopted Law on Public-Private Partnerships in order to harmonise the interests of the public, the state and investors.