Huu Nghi - Chi Lang Expressway increases capital by 779 billion VND

Khánh Linh |

Lang Son - The Provincial People's Committee decided to adjust the Huu Nghi - Chi Lang expressway project, raising the total investment to VND 11,808 billion, an increase of VND 779 billion compared to the previous approval.

On December 24, the People's Committee of Lang Son province issued a decision approving the adjustment of the Huu Nghi - Chi Lang Border Gate Expressway Project under the BOT form.

According to the new decision, the total investment of the project is increased to VND 11,808 billion, an increase of VND 779 billion compared to the previously approved plan.

The project has many adjustments related to technical scale, traffic organization, land use area and capital structure.

In particular, the Huu Nghi - Chi Lang expressway has been expanded at some sections, ensuring the completion scale with a width of 32.25 m.

The expressway connecting to Tan Thanh and Coc Nam border gates has also been adjusted to fully invest in 4 lanes, with a roadbed width of 22 m, replacing the previous phased investment plan.

Regarding design, the project locally adjusts the route direction from Km4+700 - Km6+500 on the Tan Thanh - Coc Nam connecting route.

The adjustment aims to ensure the scope of land occupation for construction works and road safety corridors outside the boundaries of planning areas in Dong Dang - Lang Son Border Gate Economic Zone. Some red line elevators have also been adjusted to meet technical requirements.

The IC.04 intersection, connecting the expressway with National Highway 1A towards Lang Son city, is converted from a direct intersection to a single-speaker intersection on a complete scale.

The intersection connecting to the Cargo Transit Area has also been adjusted to ensure connectivity and traffic safety.

In addition, the number of underpasses for people has been adjusted to increase by 4 more. Of which, the main expressway has 2 tunnels reduced, while the Tan Thanh - Coc Nam connecting route has 6 tunnels increased.

Some bridge works on the connecting route have also been adjusted to a cross-section scale of 22 m, suitable for the width of the roadbed.

According to the adjustment decision, the land use area of the project increased from about 640 hectares to nearly 791.4 hectares.

Of which, the land area for site clearance for the route is about 659.2 hectares; the construction area for resettlement areas is about 14.1 hectares; the temporary land area for dumping sites and material mines is about 104.5 hectares; the land area for construction of rest stops is about 13.5 hectares.

According to the adjustment plan, the total investment for the phased phase is 11,808 billion VND, an increase of 779 billion VND compared to the previously approved decision, but a decrease of 91 billion VND compared to the total investment in the adjusted pre-feasibility study report approved by the Provincial People's Council.

The main reason for the capital increase is the increase in construction costs of more than VND 1,529 billion and the increase in compensation, support and resettlement costs of more than VND 69 billion.

Some other expenses such as project management costs, consulting, reserves and interest during the construction period were adjusted down.

Regarding capital, the state capital participating in the PPP project is about VND 8,200 billion, accounting for 69.44% of the total investment, mainly for supporting construction works and paying compensation, site clearance, and resettlement.

The capital arranged by the investor and the project enterprise is about 3,608 billion VND.

According to the financial plan, the project's payback period is expected to be about 18 years and 11 months.

The People's Committee of Lang Son province requires investors and project enterprises to focus on organizing implementation and completing the project on schedule, while being responsible for the accuracy and legality of records and data.

The Department of Construction is assigned to inspect, supervise the implementation process and report to the Provincial People's Committee according to regulations.

Khánh Linh
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