PPP chosen for HCM city's first overhead road

News - A public-private partnership (PPP) will apply to HCMC’s first elevated road on a pilot basis following the approval from the Ministry of Planning and Investment.

The 8km highway - which will link Cong Hoa Street in Tan Binh District and Nguyen Huu Canh Street in Binh Thanh District and mostly run along Nhieu Loc-Thi Nghe Canal - is one of the four overhead roads the city has long planned to build to connect the city’s northwest and the downtown area.

The HCMC Department of Transport said the city is calling for investment in the four roads under various forms, with PPP being a top priority.

Nguyen Huu Chanh, head of the planning and investment division under the transport department, said a number of foreign investors have shown interest in the Elevated Highway No.1 project.

However, as the pilot PPP has been chosen for the project, the transport department is urging consultant Bach Khoa Construction Consulting Corporation to complete its design consultancy so that a tender could be opened to pick an investor for the project.

Bach Khoa was expected to announce its mid-term report on the Elevated Highway No.1 project yesterday. Vu Xuan Hoa, director of Bach Khoa, said, his company could have the design consultancy phase finished early next year.

South Korean firm GS Engineering & Construction previously withdrew from the project to develop the city’s first elevated road.

A Malaysia firm intended to get involved in the second elevated road project but later pulled out of it, citing the project’s lack of feasibility.

The second overhead road is planned to start at the intersection of the first elevated road and To Hien Thanh Street, go along To Hien Thanh, Lu Gia, Binh Thoi, Lac Long Quan and Road 3, and end at Beltway 2.

* In a related development, site clearance for Metro Line No.l connecting Ben Thanh Market and Suoi Tien Park is near completion, according to the HCMC Management Authority for Urban Railways.

The main package to build the railway will be commenced in the second quarter of 2012.

At present, the selection of contractors for underground and overhead sections as well as the engineering and electrical packages such as locomotives and carriages is underway.

As for Metro Line No.2, also known as the 11km Ben Thanh-Tham Luong metro route, a metro station and maintenance center are being developed in District 12. The project is undergoing survey and technical design and is set to begin in 2012-2015 with trial operation in 2016.

Investment capital is being sought for other metro lines. Specifically, Metro Line No.5 running from Bay Hien Intersection in Tan Binh District to the Saigon Bridge near the downtown area will be funded by the Spanish Government to the tune of 500 million euros, as signed in the memorandum between the two countries on December 15, 2009.