Private group proposes PPP model to expand North–South Expressway

May 22, 2025 - 14:12
DEOCA Group has proposed partnering with local firms to expand key eastern North–South Expressway sections via the PPP model.
Plans for the Mai Sơn – National Highway 45 section of the eastern North–South Expressway will expand it to six lanes. — Photo baodautu.vn

HÀ NỘI — DEOCA Group has submitted a proposal to the Prime Minister calling for collaboration with domestic enterprises to expand key sections of the eastern North–South Expressway using a public-private partnership (PPP) model.

The proposal follows Deputy Prime Minister Trần Hồng Hà’s directive on May 14 to study the expansion of under-capacity expressway sections, which were initially built with just two to four lanes. These segments have shown growing signs of traffic congestion and safety concerns due to rising transport demand and evolving economic targets.

To address these challenges, DEOCA suggests that the Government convene a meeting with relevant ministries to consider two main approaches.

First, the group proposes working with the Ministry of Construction to identify phase one expansion projects funded entirely by private domestic capital. Second, it suggests combining public and private investment to speed up progress.

DEOCA also recommends being assigned as the project developer under the PPP mechanism, as outlined in Resolution 68-NQ/TW and relevant laws. The group commits to using equity and mobilising domestic funds, ensuring transparency in toll revenue and making contributions to the State budget over the course of operations.

The group will lead efforts to propose a joint project with domestic firms. If appointed as investor, DEOCA commits to breaking ground by this December to mark National Resistance Day and the 14th National Party Congress.

With a track record of leading large-scale transport projects such as the Hải Vân tunnel and the expansion of the HCM City – Trung Lương – Mỹ Thuận Expressway, DEOCA believes its experience will enable it to manage and expand existing infrastructure while keeping traffic flowing and ensuring public safety.

According to the group's estimates, expanding five currently non-tolled expressway segments (Mai Sơn-National Highway 45, National Highway 45–Nghi Sơn, Nghi Sơn–Diễn Châu, Vĩnh Hảo–Phan Thiết and Phan Thiết–Dầu Giây) through the PPP model could save over VNĐ37 trillion (US$1.42 billion) from the State budget.

Expanding the entire North–South Expressway could reduce the public financial burden by up to VNĐ152 trillion.

The group also calls for special mechanisms to support implementation, including land clearance, site access and temporary forest land use.

The Ministry of Construction is currently reporting to the Government on a proposal to expand the eastern North-South Expressway to its planned six-lane scale, with construction expected to begin in the fourth quarter of 2025.

The upgrade would cover 18 sections stretching approximately 1,144km in total, with a preliminary investment estimate of VNĐ152.14 trillion. — VNS

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