The Ring Road No 4 expressway, spanning 113km and passing through Hà Nội, Hưng Yên and Bắc Ninh, is expected to be put into use from 2027. — VNA/VNS Photo

HÀ NỘI — Hà Nội People's Committee has proposed that the Ministry of Transport and the provinces of Bắc Ninh and Hưng Yên agree on the toll rates and schedule for fee increases for the use of the Ring Road No 4.

The initial toll rate per kilometre on the Ring Road No 4 is proposed to be VNĐ1,900 (US$0.078) for standard vehicles, ensuring financial viability and falling within the regulated price range, according to the capital city's People's Committee.

The third component of the Ring Road No 4 project, utilising the public-private partnership (PPP) model, includes the construction of a four-lane expressway in the initial phase, expanding to six lanes in the completed phase.

The expressway, spanning 113km and passing through Hà Nội, Hưng Yên and Bắc Ninh, is expected to be put into use from 2027.

As per Hà Nội's proposal, vehicles with less than 12 seats and trucks under two tonnes will pay the lowest toll per kilometre at VNĐ1,900 ($0.078) or about VNĐ214,000 ($8.81) for the entire 113km, while trucks of 18 tonnes or more and 40-foot containers pay the highest at VNĐ7,220 ($0.3) or about VNĐ815,000 ($33.54) for the entire route.

The vehicle fees will be gradually increased every three years until the project is fully paid for.

By 2054, as the payback period approaches, the toll per kilometre on the expressway is projected to reach a low of VNĐ5,400 ($0.22) and a high of VNĐ20,520 ($0.84).

The third component of the Ring Road No 4 project has a total investment of VNĐ55 trillion ($2.26 billion). This includes VNĐ26.6 trillion ($1.1 billion) from the State budget, VNĐ28.5 trillion ($1.17 billion) from the BOT (Build-Operate-Transfer) source.

Explaining the toll rates, the capital city's People's Committee stated that the proposed pricing framework for driving on the Ring Road No 4 expressway is consistent with the North-South Eastern expressway built in the BOT (Build-Operate-Transfer) form during the 2017-2020 period, by current regulations.

The current toll fee for expressways around Hà Nội, such as Pháp Vân - Cầu Giẽ, is VNĐ1,250 per km for standard vehicles.

The Hà Nội - Hải Phòng expressway charges VNĐ2,000 per km for standard vehicles, with a 20 per cent fee increase every five years according to the BOT contract. Since its operation in 2015, this expressway has not adjusted its toll prices.

The Bắc Giang - Lạng Sơn expressway currently has the maximum toll fee of VNĐ2,100 per km for standard vehicles.

Considering the proposed toll rates and financial plan, Hà Nội evaluates that the PPP project for Ring Road No 4, with a State budget support of VNĐ26,767 billion (nearly 50 per cent of the total investment) would be feasible.

According to a representative of the Ministry of Transport, the current initial toll fee for expressways with four to eight lanes in urban areas ranges from VNĐ1,500 VND to VNĐ2,100 per km for standard vehicles.

Therefore, the proposed toll of VNĐ1,900 per km for Beltway No 4, applicable in 2027, is considered reasonable.

PPP projects always need to calculate a financially feasible plan based on the benefits for the three parties involved: the state, investors, and the public.

The Hà Nội People's Committee proposes dividing the third component of the Beltway No 4 project into two categories.

The VNĐ26.6 trillion from the State budget will be used to build Hồng Hà, Mễ Sở, Hoài Thượng bridges, and sections from the junction of Highway No 6 to the Hà Nội - Hải Phòng expressway intersection.

The fund from BOT source with VNĐ28.5 trillion will be used to construct highway sections from the Nội Bài - Lào Cai intersection to the National Highway 6 intersection and from the Hà Nội - Lào Cai highway intersection to the Hải Phòng - Nội Bài - Hạ Long expressway intersection. This will be implemented through a Public-Private Partnership (PPP) model.

According to the Traffic Construction Project Management Board, Department of Transport, so far, the localities with roads passing through have reclaimed and cleared 87.12 per cent of the land area for the project. The total disbursement for these localities has reached over VNĐ1,000 billion, ensuring the committed schedule.— VNS