Issuing 100,000 billion VND in bonds to invest in key transportation infrastructure projects

DNHN - The government has decided to issue 100,000 billion VND in bonds to invest in key national transportation infrastructure projects. This is a strategic move to enhance transport efficiency, reduce congestion, and promote economic growth.

Recently, in Official Dispatch No. 4292/VPC-KTTH dated June 20, 2024, Prime Minister Pham Minh Chinh announced that, according to Resolution No. 82/NQ-CP dated June 5, 2024, and previous notifications, the government has directed the Ministries of Finance and Transport to coordinate the issuance of an additional 100,000 billion VND in government bonds to invest in key national projects.

The Prime Minister requested the Minister of Finance, the Minister of Transport, the Ministry of Planning and Investment, and relevant agencies to urgently review and complete the report on the implementation of this task. Deputy Prime Minister Le Minh Khai will directly oversee, focusing on projects that have completed procedures and need immediate funding, while avoiding spreading resources thin.

At the beginning of June 2024, Minister of Planning and Investment Nguyen Chi Dung proposed issuing a bond package of approximately 165,000 billion VND to invest in transportation infrastructure projects in Official Dispatch No. 4243/BKHĐT-PTHTDT sent to the Prime Minister.

The Ministry of Planning and Investment presented viewpoints, principles, and criteria for upgrading highways to complete scales as follows:

Firstly, investing in expanding existing segments with a scale of 2 lanes (completed or under construction) to 4 lanes to ensure traffic safety and uniformity along the route. Priority is given to segments with high safety risks, especially on the North-South Expressway in the East, segments with increased traffic causing prolonged congestion, and PPP projects with favorable investment capital arrangements and procedures.

Secondly, investing in expanding all existing 4-lane highways to planned scale, especially on the North-South Expressway in the East and segments connecting to the gateways of major cities, to reduce congestion and improve socio-economic conditions.

Thirdly, investment should match available capital, balance, and disbursement capacity in the medium-term and annual public investment plans of both central and local budgets. PPP projects are expected to require public investment capital and funds from investors.

Fourthly, investment must comply with legal regulations on public investment, PPP investment, and state budget.

Based on these criteria, the Ministry of Planning and Investment proposed a list of 28 projects (23 public investment projects, 2 PPP projects, and 3 projects managed by the Vietnam Expressway Development and Investment Corporation - VEC), with total capital needs of up to 247,660 billion VND.

According to calculations, the capital needed for 23 public investment projects, including 21 projects on the North-South Expressway and 2 projects on the Tuyen Quang - Ha Giang expressway, is 181,403 billion VND. To expand 2 projects Hòa Lạc - Hòa Bình and Ho Chi Minh City - Trung Luong - My Thuan, 43,162 billion VND is needed. Projects managed by VEC require 23,095 billion VND.

The Ministry of Planning and Investment stated that the central budget has balanced 15,506 billion VND for 5 projects. However, about 165,897 billion VND is still needed to complete the upgrade and expansion of segments on the North-South Expressway in the East from a limited 4-lane scale to a complete scale.

Accordingly, this capital will be used to implement a series of important infrastructure projects such as: investing in national highways, expressways, and inter-provincial roads that will be renovated and expanded to meet increasing transportation demands and reduce traffic congestion. Investing in public transportation projects such as subways, rapid buses, and rail systems to alleviate pressure on personal transportation systems and enhance public utility.

Or upgrading port and airport infrastructure to promote international trade activities and support nationwide economic development. Investing in bridge and road projects, especially in areas with high traffic volumes and difficult conditions.

However, the issuance of bonds and investment in transportation infrastructure is expected to bring significant benefits, such as facilitating movement between regions, thereby promoting balanced development between areas and reducing the development gap between provinces and cities.

Furthermore, modern transportation infrastructure will attract domestic and foreign investment, create conditions for business development, and increase job opportunities. Investment in public transportation and reducing traffic congestion will improve the quality of life for people, saving time and travel costs.

Additionally, the government is committed to strictly managing investments to ensure that funds are used effectively and for the right purposes. Relevant agencies will monitor and check the progress and quality of projects to ensure that objectives are completed on time and meet high-quality standards.

In summary, the decision to issue 100,000 billion VND in bonds to invest in key transportation infrastructure is an important move by the government to develop a sustainable economy and improve the quality of life for people. With this investment, the country is expected to witness significant changes in transportation and economic development in the near future.

Nhan Ha