Beltway 4 of the Capital region is implemented according to 7 component projects, of which component project 3 is the "backbone" including a 113km long expressway.
The project has a total investment of nearly 56,300 billion VND, of which the sub-project uses state capital to support the project of about 26,700 billion VND, and the project part uses capital from BOT investors of about 29,500 billion VND.
Hanoi has separated projects using state budget capital including the construction of Hong Ha bridge, the section of Ring Road 3 from before the National Highway 6 intersection to the end of the Hanoi - Hai Phong expressway intersection (including Me So bridge); Hoai Thuong bridge; the 9.7km connecting section with Noi Bai - Ha Long expressway.
The remaining items will be implemented by investors using their own capital and credit capital in the form of public-private partnership (PPP).
At component project 3 on investment in building the expressway system under the public-private partnership (PPP) method, the leader of the Hanoi People's Committee said that project implementation is still very difficult.
The city has surveyed the level of interest of investors, however, not many investors have participated because businesses must meet the minimum criteria for a large, complex transportation project.
Accordingly, investors must have equity capital of at least 15% of the total project investment of more than VND 4,400 billion; must have completed a project with a total investment of at least 50% of the total investment of the Ring Road 4 project (about VND 28,100 billion).
Investors must mobilize about 29,525 billion VND of capital, of which loans from credit institutions account for about 85%, with a long payback period.
The leaders of the Hanoi People's Committee assessed that large capital sources could cause difficulties for credit institutions and banks, affecting investors' ability to mobilize capital.
For the above reasons, not many domestic investors participate in forming consortiums that meet the requirements.
According to the plan, component project 3 needs about 30 months of construction; while if favorable conditions are met in the first quarter of 2025 when an investor is selected, construction can begin in the second quarter of 2025.
Ring Road 4 passes through Hanoi 57km, Hung Yen 19km, Bac Ninh 27km and the connecting route towards Noi Bai - Ha Long highway is about 9.7km.
Of which, the low-lying section is about 32km long, the elevated section is more than 80km long. The road has 6 lanes, a parallel road system on both sides, a green corridor, technical infrastructure works and land reserved for the belt railway. The design speed of the route is 100km/h.
The project will invest in building 8 complete interchanges. Of which 5 are in Hanoi; 2 are in Hung Yen province; 1 is in Bac Ninh province. At the same time, the project will invest in building 7 branches connecting to the parallel roads on both sides.
According to the plan, Ring Road 4 will be completed and put into operation in 2027. Together with the parallel road system, when completed, Ring Road 4 will contribute to relieving traffic congestion, connecting provinces and creating new development space for the entire capital region, including Hanoi, Hung Yen and Bac Ninh.
