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VND 8,700 billion for relocate Tan Thuan port and building Thu Thiem bridge 4

Posted: 07-03-2018

Thu Thiem 4 bridge project connects from District 2 to District 7, with a total investment of more than VND 5,250 billion and a port relocation cost of VND 3,500 billion.

HCMC People's Committee has just proposed the Prime Minister, Ministry of Transport and Ministry of Planning and Investment to approve the policy of investing in the Thu Thiem 4 bridge construction project in the form of BT (build - transfer) and allow the City People's Committee to decide to select investors to implement the project.

It is likely that the joint venture including Phat Dat Real Estate Development Corp, 620 Infrastructure Development And Investment Corporation, 168 Construction Development Investment Joint Stock Company and Tan Thuan Industrial Promotion Company Limited (IPC) will be chosen as an investor in a special order (according to Article 26 of the Bidding Law).

According to the City People's Committee, main transport infrastructure works in Thu Thiem new urban area are expected to be completed in 2017. Therefore, the rapid construction of the bridge system connecting Thu Thiem urban area with the existing center and the South area to attract investment and promote the rapid development of Thu Thiem urban area is essential because currently, Thu Thiem new urban area only connects traffic with the existing center in Binh Thanh District and District 1 and has not connected with District 4, District 7 and South area.



In addition to the Saigon Bridge and Thu Thiem Tunnel, there are also four bridges across the Saigon River connecting to Thu Thiem new urban area. Thu Thiem 1 Bridge has been exploited and Thu Thiem 2 Bridge is under construction



“The investment in the Thu Thiem 4 bridge construction project is very necessary and urgent to relieve traffic pressure from Binh Thanh District, Thu Duc District to Districts 7 and 8, Binh Chanh and Nha Be districts; reduce traffic congestion in the inner city and traffic accidents related to the operation of ports in the area of District 4 and District 7. The project also helps to connect Thu Thiem new urban area with the existing center of the city, District 4 and District 7, facilitating investment attraction and promoting the development of Thu Thiem new urban area and the new urban area in the South.”- Chairperson of the City People's Committee Nguyen Thanh Phong presented in the petition.

According to the proposal, the Thu Thiem 4 bridge project is about 2,160 m long with 6 lanes s with the main bridge from District 7 to the end of the bridge in District 2. Specifically, the bridge with two branches, N1 and N2, in district 7 will land on Huynh Tan Phat Street and the bridge section on Nguyen Van Linh Street in front of Nguyen Van Linh - Tan Thuan Bridge 2 intersection.

The project has a total investment of more than VND 5,250 billion, of which construction, installation and equipment cost is more than VND 3,200 billion and site clearance cost (in District 7) is more than VND 960 billion.

The City People's Committee proposed to implement Thu Thiem 4 bridge project in the form of BT (build - transfer) and pay the investor the value of the land use right of the land fund in Thu Thiem new urban area and other locations. It is expected to consist of 11 land plots (about 99,904 m2) belonging to functional areas No. 3 and 4 in Thu Thiem new urban area.

In addition, the City People's Committee plans to use four land plots on Nguyen Thi Minh Khai Street (District 1, nearly 1,190 m2), Kha Van Can Street (Thu Duc District, 5,300 m2), Linh Trung Street (Thu Duc District, 11,760 m2) and Cach Mang Thang Tam Street (District 3; 7,000 m2) to pay for the compensation for site clearance and other costs.

Thu Thiem 4 Bridge is located near Phu My Bridge but Ho Chi Minh City proposes to build with clearance height of only 10 m (Phu My bridge has a clearance height of 45 m) to reduce investment costs. Therefore, the implementation of the Thu Thiem 4 bridge project to Tan Thuan Dong port will reduce the ability to receive ships to Saigon port, etc. and it is likely that all Tan Thuan port will be suspended.




City People's Committee proposed to move Tan Thuan port to Hiep Phuoc port to build Thu Thiem Bridge 4



The City People's Committee proposed to adjust the seaport planning and relocate some of these ports to Hiep Phuoc port (Nha Be district). This relocation also helps Ho Chi Minh City reduce congestion and traffic accidents in the inner city, especially at black spots such as Nguyen Van Linh - Huynh Tan Phat and Nguyen Van Linh - Tan Thuan 2 Bridge intersections and Nguyen Tat Thanh Street , Phu My, Kenh Te bridges, etc.

The City People's Committee also planned to build a new port area at Hiep Phuoc port to relocate Tan Thuan port and build Thu Thiem Bridge 4 in the end of 2019. The total investment of the new port is about VND 3,500 billion, advanced by the investor and paid by land fund at the existing Tan Thuan port and other places.
 

 

Who is the four-enterprise joint venture?

Phat Dat Real Estate Development Corp, 620 Infrastructure Development and Investment Corporation, 168 Construction Development Investment Joint Stock Company jointly use their own funds to make Thu Thiem 4 bridge project proposal in BT form.

Related departments of the city have checked financial capacity of these businesses, specifically:

- Phat Dat Real Estate Development Corp (District 7) has a charter capital of VND 2,018 billion with the main business lines of construction, housing trading, railway and road construction, etc.
This company has invested in large real estate projects in Ho Chi Minh City such as high-rise apartment and commercial center project, The EverRich 1 (investment capital of VND 1,100 billion), The EverRich 2 (investment capital of about VND 8,165 billion), The EverRich 3 (investment capital of about VND 8,560 billion), The EverRich Infinity (investment capital of about VND 1,400 billion), etc.
 
- 620 Infrastructure Development and Investment Corporation (Can Duoc District, Long An) has a charter capital of VND 968 billion with the main business lines of construction of bridges, culverts, tunnels and precast concrete components. This company has been carrying out many large-scale technical and transport infrastructure projects such as construction of packages 5A & 6 under Ho Chi Minh City - Long Thanh - Dau Giay highway project (total value of over VND 400 billion), cooperating with Phat Dat Real Estate Development Corp to invest in the western route of the peninsula and northern Cam Ranh peninsula tourist area (total capital of nearly VND 790 billion).

- 168 Construction Development Investment Joint Stock Company (Binh Chanh District, Ho Chi Minh City) has a charter capital of VND 900 billion with the main business lines of construction of civil works, railway and road works. This joint stock company has been constructing civil works, railway and road works, with a total value of VND 821 billion.

In addition, the three companies also have joint venture to invest and complete the construction project of My Loi Bridge on National Highway 50 in the form of BOT with a total investment of nearly VND 1,440 billion. The joint venture is also investing in Chau Doc Bridge with a total length of 3,210 m with a total investment of VND 821 billion in BOT form.

Ho Chi Minh City People's Committee said that Thu Thiem 4 bridge project is unique and must be done simultaneously with the relocation of Tan Thuan port, so IPC Company Limited is proposed to supplement to ensure Thu Thiem 4 project’ progress.


IPC Company Limited is a state-owned enterprise that has implemented many large-scale projects such as the Southern New Urban Area (Phu My Hung), An Phu Tay Residential Area, Hiep Phuoc Industrial Park. IPC Company Limited is currently the investor of Hiep Phuoc port project.



By HCMC Law
 

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