The Hanoitimes - The total investment of the project is estimated at nearly US$58.7 billion, of which, state budgets will cover at least 80 percent and the remaining will be raised from the private sector under the PPP model.
South Korea multinational conglomerate Hyundai has expressed its interest in joining into the North-South bullet train project by providing comprehensive solutions from planning, capital mobilization, construction to operation and maintenance, VnExpress reported, citing a senior executive.
At a meeting with the representatives of Vietnam’s Ministry of Transport in Hanoi on May 30, Vice Chairman of Hyundai Engineering & Construction Chung Jin Hae said that the group wanted to cooperate, invest and share its experience in the North-South expressway and high-speed railway.
Express railway: Illustrative photo
Hyundai accomplished three bullet train projects overseas, six projects in South Korea and nine underground urban railways, therefore, the group can also support Vietnam in technologies, equipment as well as training, the executive boasted.
Hyundai proposed some ways to mobilize capital for the public-private partnership (PPP) project such as guarantees from the two governments to involve more financial investors, minimum return guarantee policy and Vietnamese government’s active role in land clearance and working out favorable policies for investors.
According to the pre-feasibility report, the North-South high-speed railway project will be executed into two phases, one from 2020 to 2030 and the other from 2030 to 2045.
The total investment of the project is estimated at nearly US$58.7 billion, of which, state budgets will cover at least 80 percent and the remaining will be raised from the private sector under the PPP model.
The line that links Hanoi to Ho Chi Minh City is 1,545 kilometers (km) in length and has 20 stops across some cities and provinces. It is expected to reduce travel time between the two cities to under six hours by rail.