July 14, 2025 | 14:00 GMT+7

North-South Expressway expansion: PPP with BOT-O&M model proposed

Huỳnh Dũng -

The proposal calls for the expansion of 18 component projects along the expressway, a vital artery for the nation's economy.

The Ministry of Construction has submitted a report to Prime Minister Pham Minh Chinh and Deputy Prime Minister Tran Hong Ha, proposing for expanding key sections of the Eastern North-South Expressway under Public-Private Partnership (PPP) model. 

The proposal calls for the expansion of 18 component projects along the expressway, a vital artery for the nation's economy.

This work is part of a national goal to complete 3,000 km of expressways by 2025 and is considered essential to support ambitious economic targets, including 8% GDP growth or highter in 2025 and annual double-digit growth in the 2026-2030 period.

While the ministry had initially recommended using public funds to allow for immediate implementation and avoid project delays, Government leaders have now directed the ministry to study the feasibility of leveraging private investment through the PPP method.

Upon completion of all component projects, toll collection will be implemented on all sections, including those built with public funds, in accordance with National Assembly resolutions.

To ensure seamless and efficient operation across the entire route, the Ministry plans to select investors using a combined approach. The strategy will prioritize a blend of Operate & Manage (O&M) and Build-Operate-Transfer (BOT) models.

Under an O&M contract, the state funds the investment and hires a private firm to operate and maintain the project. In contrast, the BOT model allows a private investor to directly fund construction and operate the road for a specific period to recoup their investment capital before transferring it back to the State.

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