I. PRELIMINARY INFORMATION ON THE PROJECT

1. Project objectives and scope (expected):

1.1. Objectives:meet transportation needs, reduce traffic load and ensure traffic safety on National Highway 22; synchronouslycomplete and put ring roads with large capacityinto operation, ensure traffic safety and high speed along the Ho Chi Minh City - Tay Ninh transport corridor, develop the industrial - urban chainof Moc Bai - Ho Chi Minh City - Cai Mep Port - Thi Vai in connection with the Trans-Asia economic corridor, promote socio-economic development of Ho Chi Minh City and Tay Ninh province in particular and the Southeast region in general; create a driving force forthe linkage, cooperation and development between the Southeast region and the Mekong Delta, the Central Highlands and the South Central region; increase the competitiveness of the economy in the context of deep integration, gradually complete the road transport network according to the plan; contribute to ensuring national security and defense.

1.2. Project scope:

1.2.1. Investment scope:invest in the construction of the Ho Chi Minh City - Moc Bai expressway with a total length of about 51.0km, of which, the starting point connects with Ring Road 3 - Ho Chi Minh City in Cu Chi district, Ho Chi Minh City; the end point intersects with National Highway 22 (about Km53 + 850) in Ben Cau district, Tay Ninh province.

1.2.2.Investment scale:

- Technical standards: invest in construction of the expressway according to Specifications for Expressways(TCVN 5729: 2012), design speed Vtk=120 km/h .

- Cross-sectional scale:

+ Stage of completion according to the planning: 06 lanes, roadbed width B_nền= 33.0m; 

+ Investment phase 1: 04 lanes, roadbed width B_nền= 25.5m.

- Construct works along the expressway, intelligent transportation system, toll collection system, rest stops etc. consistently and efficiently in accordance with current standards and regulations.

2.  Project location:Ho Chi Minh City and Tay Ninh province.

3. Project implementation period:from 2024 to 2027.

4. Area of land and area of water surface used; other resource demand: the preliminary land use demand of the Project is approximately 409.3 hectares. Site clearance is in accordance with the planning with 06 lanes.

5. Type of project contract (expected): Build - Operate - Transfer Contract (BOT Contract).

6. Preliminary investment (phase 1):approximately VND19,617 billion (In words: Nineteen thousand six hundred and seventeen billion VND).

In which:

-  Construction and equipment costs: approximately VND9,273 billion

- Project management cost, investment consulting cost, other costs (including project preparation cost of approximately VND45 billion): approximately VND695 billion

- Cost of compensation and site clearance, support, resettlement and relocation of technical infrastructure (including contingency costs): approximately VND6,774 billion

- Contingency costs for construction quantity, equipment and price slippage: approximately VND1,594 billion

- Interest during construction: approximately VND1,281billion

* Total investment of component projects: 

• Component Project 1: Ho Chi Minh City - Moc Bai Expresswayconstruction investment (phase 1) under PPP mode (BOT contract). Total investment:approximately VND10,421 billion.
• Component Project 2: Access roads and overpasses construction investment; total investment: approximately VND2,422 billion; invested under PPP mode.
• Component Project 3: Compensation, support, and resettlement under the Ho Chi Minh City - Moc Bai expresswayproject, Ho Chi Minh Citysection; total investment: approximately VND5,270 billion; invested under PPP mode.
• Component Project 4: Compensation, support, resettlement under the Ho Chi Minh City - Moc Bai expresswayproject, Tay Ninh provincesection; total investment: approximately VND1,504 billion; invested under PPP mode.

7. Preliminary financial plan:

7.1. Capital structure of the project:

• The capital arranged by the Investor and theenterprises of the PPP project is approximately VND9,943 billion (including VND45 billion of project preparation costs according to Clause 1of Article 73 of the PPP Law, which is advanced from the city budget and will be reimbursed to thecity budget by the Investor), accounting for 50.69% of the total investment of the Project, in which, the Investor's equity is approximately VND 1,491 billion, accounting for 15% of the total investment of the Project according to Clause 1 of Article 77 of the Law on Investment under PPP mode. 
• State capitalin the project: approximately VND9,674 billion, accounting for 49.31% of the total project investment, in which:

              + Central capital: approximately VND2,872 billionto pay forcompensation, site clearance, support, and resettlementactivitiesunder the Project(Ho Chi Minh City section: approximately VND1,368 billion; Tay Ninh province section: approximately VND1,504 billion).

                     +  Capital from Ho Chi Minh City budget: approximately VND6,802 billion(to pay for the compensation, site clearance, support and resettlement for Ho Chi Minh City section: approximately VND3,902 billion, support for construction works under Component Project 1 (BOT): approximately VND478 billion; construction of works in Component Project 2: approximately VND2,422 billion).

• For Component Project 1: Ho Chi Minh City - Moc Bai Expresswayconstruction investment (phase 1) under PPP mode (BOT contract). Total investment: approximately VND10,421 billion, including :

              +The Investor capital: approximately VND9,943 billion, accounting for 95.41%;

              +State budget capital (Ho Chi Minh City budget):approximately VND478 billion, accounting for 4.59%).

7.2. Expected range of price and charge for road usage: 

The starting price for road usage by stage is expected to be approximately VND2,100/group-1vehicle/km. The service price between the remaining vehicle groups is determined according to the correlation coefficient between vehicle groups under the form of fee collection by stage as regulated in Circular 28/2021/TT-BGTVT dated November 30, 2021 of the Ministry of Transport (coefficient for group-2 vehicles is 1.4; group-3vehicles is 2.1; group-4 vehicles is 3.8 and group-5 vehicles is 5.7).

7.3. The Investor's return on equity for the project:  preliminarily estimated to be approximately 11.77%/year.

7.4. Loan interest rate:

Based on the provisions of Decree No. 28/2021/ND-CP dated March 26, 2021 of the Government, the loan interest rate is determined with referenceto the lending interest rates of current commercial banks and similar on-going projects implemented by the Ministry of Transport (the expected interest rate for the project is 10.7%/year).

7.5. Project fee collection period:expected to be 16 years and 9 months.

8. Investment incentives and guarantees:

8.1. Investment incentives: The Investor and the enterprises of the PPP project are offered incentives on tax, land use fees, land rent and other incentives according to the law on tax, land and investment and other relevant legal provisions of law.

8.2. Investment guarantees: The Investor and the enterprises of the PPP project are offered investment guarantees according to the provisions of the Law on Investment under PPP mode and legal regulations on investment .

9. Revenue increase and decrease sharing mechanism:

- The revenue increase and decrease sharing mechanism of the Project is implemented according to Article 82 of the Law on Investment under PPP mode and Decree No. 28/2021/ND-CP dated March 26, 2021 of the Government stipulating the financial management mechanism for investment projects under PPP mode;

- Expected source of capital to cover the decreased revenue: from the contingencies of the Central Budget.

10. Name of the project preparation unit:Transportation Works Construction Investment Project Management Authority of Ho Chi Minh City.

11. Special factors requiring the application of innovative solutions to shorten the progress and complete the construction of works and infrastructure systems within a certain period of time, achieving high levels of energy savings and environmental protection for projects in the group with a high risk of significantly negative environmental impacts according to the law on environmental protection: according to the provisions of the Law on Environmental Protection dated November 17, 2020and Decree No. 08/2022/ND-CP dated January 10, 2022 of the Government detailing a number of articles of the Law on Environmental Protection, Group-I projects have a high risk of significantly negative environmental impacts.

12. Principles for determining the form of Investor selection are as follows:

- Competitive negotiation in case there are no more than 03 Investors meeting the requirements for project implementation.

- In case the Project has more than 03 Investors meeting the requirements for project implementation, the following principles shall be applied:

+ International competitive bidding with pre-qualification in case there are 06 or more interested Investors, of which at least 01 Investor established under foreign laws expresses interest;

+ National competitive bidding with pre-qualification in case there are 06 or more Investors established under Vietnam’s laws expressing interest;

+ International competitive bidding with pre-qualification in case there are less than 06 interested Investors, of which at least 01 Investor established under foreign laws expresses interest;

+ National competitive bidding with pre-qualification in case there are less than 06 interested Investors established under Vietnam’s laws expressing interest.

II. CONTENTS NEEDING INVESTOR AND BORROWER SURVEY

The contents that need Investor survey on the Project include:

1. Survey on the capability to implement similar projects (in terms of field, scope, etc.) of the private sector:

The Investor is requested to provide a preliminary report on the capacity and experience in implementing similar projects based on the following suggestions:

- Projects in the field of road transport works construction investment under public-private partnership (PPP) mode in which the Investor has participated as an equity investor. The Investor shall prepare a specific report on each project having participated in including the project scope; the total investment; the value of equity of the Investor's contribution in the project; the project implementation status to date (put into operation, under construction etc.); other information (if any).

- Projects in the field of infrastructure development and public service provision in which the Investor has participated as an equity investor. The Investor shall prepare a specific report on each project having participated in including the project scope; the total investment; the value of equity of the Investor's contribution in the project; the project implementation status to date (put into operation, under construction etc.); other information (if any).

- Projects in the field of road transport works construction investment in which the Investor acts as the main contractor (construction contractor; operation and maintenance contractor). The Investor shall prepare a specific report on each project having participated in including the project scope; the value of equity of the Investor's contribution; the time of operation (year); other information (if any).

- Projects in the field of infrastructure development and public service provision in which the Investor has participated as the main contractor. The Investor shall prepare a specific report on each project having participated in including the value of the package/ contract or the total value of packages/ contracts; the time of performance of contract; other information (if any).

2. Survey on technical requirements and standards for Project implementation:

The Investor is requested to give their opinions on the technical standards and scale of the Project according to the investment policy approved in Decision No. 760/QD-TTg of the Prime Minister dated August 2, 2024 (attached copy) and the key parameters provided in Point 1.2 of Item 1 of Section I of this Notice.

3. The Investor's assessment of the attractiveness and feasibility of the Project; the Investor's expected return on equity:

The Investor is requested to provide preliminary comments on the attractiveness, feasibility and financial efficiency of the Project; the Investor’s expected return on equity; credit capital provision and mobilization capacity for the implementation of the Project.

4. Others:

In addition to the above contents, the Investor is requested to provide comments on other relevant contents such as the project implementation schedule; difficulties and obstacles in site clearance, resettlement, material supply for project implementation etc. and other contents (if any).

III. PRELIMINARY REQUIREMENTS ON INVESTOR’S CAPACITY AND EXPERIENCE

Note:

(1) Based on the scope, nature and field of the project, financial ratios can be revised or added such as: net asset value, revenue, profit etc. In case the Investor is a newly established organization in the year, the financial capacity of the Investor shall be assessed based on the financial statements audited by an independent auditing firm from the time of establishment to the deadline for submission of expression of interest in the project which is up to 28 days.

(2) The Investor's equity is determined based on the Investor's financial data updated within a maximum period of 28 days before the deadline for submission of expression of interest and the Investor's commitment to mobilizing equity capital.

The Investor's remaining equity = Total equity - Litigation-related costs – committed equity for ongoing projects and other long-term investments (if any) – retained equity as regulated (Equity used exclusively for allocation or as regulated by law for the Investor; equity required to be retained as a special contingency for possible cases; other equity committed to be refunded and not used for dividend declaration etc.).

(3) For projects in new fields or with large investment scale but not having Investors with experience in implementing similar projects, the  database on implemented projects, the investment phasability of the project under review can be considered to determine experience requirements for the Investor.

In this case, the experience requirements for the Investor can be revised to be lower than the guidelines but must be consistent with the reality and requirements for the implementation of the project. In addition, during the review and evaluation process, it must be ensured that the Investor has full financial and technical capacity to implement the project.

(4) Investors are only allowed to cite experience in implementing a similar project only once.

Method of converting projects: [it is regulated that 01 project of types 2, 3 is equal to 0.5 - 0.7 at a maximum of the project of type 1 and the method for rounding off for the case of conversion of the number of projects is odd digit].

(5); (6); (7); (8); (9); (10) For the projects that have not yet been clearly defined the total investment value in approval documents and project contracts, the Investor must provide supporting documents to determine this value. 

(11) The Investor must provide minutes of acceptance, contract liquidation or confirmation from state agencies to prove compliance with technical and quality requirements for implemented projects/packages.

IV. INSTRUCTIONS TO INTERESTED INVESTORS

Section 1. Contents and components of the expression of interest

Legal status document.

Experience and capacity profile according to Forms 2A, 2B and 2C, and supporting documents.

Investor's response to the survey contents of the Competent Authority.

Investor’s contact information.

Section 2. Deadline for submission of expression of interest:

From 10:00, November 06, 2024 to 17:00, December 31, 2024.

Section 3. Clarification of preliminary capacity and experience requirements for the Investor 

1.In case the Investor wants to clarify the preliminary capacity and experience requirements, the Investor must send a request for clarification to the Competent Authority in writing or through the National Bidding Network System at least 05 working days before the deadline for submission of expression of interest for reviewing and processing.

2. After receiving the request for clarification within the prescribed time, the Competent Authority shall clarify and post it on the National Bidding Network at least 02 working days before the deadline for submission of expression of interest, including a description of the contents of the request for clarification without naming the Investor requesting clarification. In case the clarification leads to amendments to the preliminary capacity and experience requirements, it shall be implemented according to the provisions in Section 4.

Section 4. Revision of preliminary capacity and experience requirements for the Investor 

1.In case of the preliminary capacity and experience requirements are revised, the Competent Authority shall post the revision decision along with the amended contents on the National Bidding Network System at least 10 days before the deadline for submission of expressions of interest.

2.In case the time of the notice on revisions to the preliminary capacity and experience requirements does not meet the provisions in Section 4.1, the Competent Authority shall extend the deadline for submission of expression of interest accordingly to ensure the above provisions. The extension shall be in accordance with the provisions in Section 6.

Section 5. Language used

The Expression of Interest and all documents and correspondence exchanged between the Competent Authority and the Investor relating to the invitation for expression of interest must be prepared in the following languages: Vietnamese and English.

Section 6. Extension of deadline for submission of expression of interest

The Competent Authority may extend the deadline for submission of expression of interest in case of revisions to the preliminary capacity and experience requirements for the Investor or demand to increase the number of Investors or other necessary cases. When extending, the Competent Authority shall notify the information on the National Bidding Network System and send a notice on the deadline for submission of expression of interest to all Investors who have submitted expressions of interest (if any).

Section 7. Replacement of Expression of Interest

After submission, the Investor may replace the Expression of Interest by resubmitting all the documents and files to the National Bidding Network System before the deadline for submission of expression of interest. The Competent Authority will only recognize and evaluate the Investor's last updated Expression of Interest on the National Bidding Network System.

Section 8. Notification of the results of preliminary capacity and experience assessment of the Investors

After having the results of preliminary capacity and experience assessment of the Investors, the Competent Authority shall post the list of Investors meeting the requirements on the National Bidding Network System.

Section 9. Contact information:

a) Competent authority:Ho Chi Minh City People's Committee.

- Address: 86 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi Minh City.

- Phone number: 028 3829 1055.

- Fax number: 028 3829 5675.

b) Investor information collection and project preparation authority: Transportation Works Construction Investment Project Management Authority of Ho Chi Minh City.

- Address: 03 Nguyen Thi Dieu, Ward 6, District 3, Ho Chi Minh City.

- Phone number: 028 3930 0530.

- Fax number: 028 3930 6638.

 

Copies to: - Ditto; - Standing PC: Chairman, Vice Chairman Bui Xuan Cuong;  - PC Office: Chief, Deputy Chief/ Project; - DOF; DOC; - DPI; - DOT; - DONRE; - DPA; - PC of Cu Chi District;  - ITPC; - TCIP; - Divisions: Project, Investment; - Filing: Office, (DA-QT).

ON BEHALF OF  HO CHI MINH CITY  PEOPLE’S COMMITTEE  FOR CHAIRMAN  VICE CHAIRMAN (Signed and sealed)   Bui Xuan Cuong