Lam Dong plans Phan Thiet - Bao Loc - Gia Nghia expressway

On the morning of August 24, Nguyen Hong Hai, Member of the Standing Committee of the Lam Dong Provincial Party Committee and Vice Chairman of the Provincial People's Committee, chaired a meeting on investment and implementation options for the project.

Expressway proposed at 143.81 km

According to a report by the Lam Dong Department of Finance, the Phan Thiet - Bao Loc - Gia Nghia expressway is a key project targeted for implementation during the 2025-2030 term.

The project is expected to strengthen interregional connectivity, expand development space for urban areas, tourism and services, and attract investment.

Under the preliminary proposal, the expressway would be approximately 143.81 km long, including 124.16 km of road sections, 12.75 km of elevated sections, nine bridges and 6.9 km through seven tunnels. The project would also include nine interchanges.

The proposed design calls for a fully built four-lane expressway, with a 24.75-meter-wide roadbed and a design speed of 80-120 km/h.

The project is expected to require approximately 1,295 hectares of land, including around 424 hectares of forest land, 131 hectares within areas planned or reserved for bauxite mineral resources, and 740 hectares of other land.

The preliminary total investment is estimated at VND54.897 trillion, including VND37.866 trillion in construction costs and VND7.865 trillion for site clearance.

PPP considered to mobilize additional funding

With capital requirements approaching VND55 trillion, the Department of Finance considers full public investment financially unfeasible.

Under the preliminary 2026-2030 medium-term public investment plan, the provincial budget is expected to provide about VND7.5 trillion, while central government support could reach approximately VND17.5 trillion. This would leave a funding gap of around VND25 trillion.

As a result, the public-private partnership (PPP) model is being considered a suitable option to mobilize additional private-sector resources.

According to the Department of Finance, two investors have expressed interest in the project: the Trung Nam - INDEL CORP - Trung Nam E&C consortium and To Thuong Construction Group Co., Ltd.

So far, only the Trung Nam - INDEL CORP - Trung Nam E&C consortium has proposed preparing the pre-feasibility study report.

However, the Department of Finance said the consortium's submission still contains several issues requiring clarification, particularly the proposed share of state capital, its ability to mobilize equity and loans, and the capacity and experience of each consortium member.

As sufficient evidence has not yet been provided, authorities currently lack a clear basis to make a preliminary assessment of the investor's capacity and experience.

The consortium's proposal to prepare project documents does not mean it has been selected as the investor.

If authorized to prepare the documents, the consortium would have to bear all related costs and risks. Such approval would not create preferential treatment or constitute a commitment to appoint the consortium as the investor.

After the investment policy is approved, the investor selection process will be conducted publicly and transparently in accordance with regulations.

Forest land and bauxite reserves pose major challenges

Another major issue is the project's expected impact on approximately 424 hectares of forest land and 131 hectares within areas planned or reserved for bauxite resources.

These issues involve significant legal and technical requirements that must be addressed under regulations governing forestry, minerals and the authority to change the use of forest and mineral-related land.

The current project documents do not yet provide sufficient solutions for areas where the proposed expressway overlaps with bauxite planning zones or for forest replacement requirements.

The Department of Finance has also proposed that the State take the lead in preparing PPP project documents.

Under this option, Project Management Board No. 2 for Construction Investment would prepare the Phan Thiet - Bao Loc section, while Project Management Board No. 3 for Construction Investment would prepare the Gia Nghia - Bao Loc section.

If the consortium is authorized to prepare the project proposal, it will be required to develop a detailed financial plan specifying state funding, equity and loans.

It must also clarify solutions for dealing with forest land and mineral resources affected by the project.

If approved, the proposed project documents are expected to be completed and submitted to the Department of Finance by November 4, 2027.

At the meeting, Vice Chairman Nguyen Hong Hai asked relevant agencies to focus on reviewing the investment model, available resources, the capacity of interested investors, and issues involving forest land and mineral resources.

He stressed that project preparations must be rigorous, comply with regulations, demonstrate feasibility and meet the required implementation schedule.