Revealing investment plan for Da Nang - Hoi An urban railway line

Scene of the working session on the investment proposal for the Da Nang - Hoi An urban railway line.

On September 10, in Da Nang City, Mr. Le Quang Nam - Vice Chairman of Da Nang City People's Committee chaired a meeting with Deo Ca Group on the proposal to invest in the Da Nang - Hoi An urban railway line according to the transport-oriented urban development model (TOD) using the PPP method.

At the meeting, representative of Deo Ca Group, Mr. Le Quynh Mai - Vice Chairman of the Board of Directors of the Group said that Deo Ca Group and domestic and foreign partners have completed the preliminary study of the investment plan for the Da Nang - Hoi An urban railway line.

This is the basis to affirm that the proposal of Deo Ca Group is feasible and to affirm its readiness to immediately deploy project preparation when approved.

The consortium participating in the project includes many large units: KITA Group, FUTA Group as investors; VPBank and TPBank committed to providing credit; international and domestic consulting units including China Design Group, CRRC Chongqing, ARUP and A2Z; technology and engineering are undertaken by CRRC Changchun and Kim Long Motors.

Deo Ca Group has studied two options for the Da Nang - Hoi An connection route to have a basis for choosing a feasible connection route. All options are proposed to be invested under the PPP method associated with the TOD model.

Contract forms can be flexible, including: BT contracts with payment by land fund and deferred budget; BTL contracts that combine land fund payment and handover to investors for operation; or BOO contracts, in which investors operate the railway project and are the investors of TOD projects.

Mr. Le Quynh Mai said that the technological and technical factors to implement the Project are ready, ensuring the possibility of completion by 2030. After this stage, the research plan also shows that extending to Tam Ky and Chu Lai, forming a regional connection network is feasible.

On that basis, Deo Ca Group proposed to the People's Committee of Da Nang City to allow the preparation of the Da Nang urban railway project dossier in accordance with the provisions of the PPP Law and the Railway Law, expected to be implemented in September 2025.

Based on the TOD model research, the Project will be invested under the PPP method, ensuring feasibility and suitability with the city's development conditions.

The project proposal preparation process will be implemented in three steps: initial report, mid-term report and final report.

In each phase, the People's Committee of Da Nang City will coordinate with investors to unify the content to ensure transparency and effectiveness in implementation.

“In order for the project to achieve its goals, the State management agency will closely coordinate with the investor in determining the TOD area, the corresponding land fund as well as the ability to arrange capital from the budget,” said a representative of Deo Ca Group.

Delegates attending the meeting agreed that Deo Ca Group, with its detailed research proposal report, showed its readiness and thorough preparation to officially participate in researching and implementing this project.

Deo Ca Group has been interested in researching options for the project since 2023 until now. Mr. Le Quynh Mai emphasized that Deo Ca Group has been trusted to research and implement many key projects in the country.

If officially approved as the research unit proposing this project, Deo Ca commits to promptly complete the research dossier with the most optimal solution to implement the project for the locality.

“However, if this responsibility is assigned to another unit, we also hope that the City People's Committee will soon make an official decision so that Deo Ca Group can focus on other projects. In addition, we believe that the research results of Deo Ca Group over the past 2 years and the implementation plans that we have built with our partners will be respected and associated with the name of Deo Ca if used to serve the project,” Mr. Le Quynh Mai added.

Also during the working session, Mr. Vuong Van Tuong - Vice Chairman of the Board of Directors of KITA Group emphasized that, with its position as one of the leading real estate developers in Vietnam, KITA Group has experience cooperating with Deo Ca Group in many projects in Ho Chi Minh City and Hanoi .

Therefore, when jointly implementing the urban railway project in Da Nang, the combination of a leading enterprise in the field of transport infrastructure such as Deo Ca and a professional real estate developer such as KITA Group is expected to bring about synergy effects, ensuring success and efficiency.

From a banking perspective, Mr. Dinh Tien Duc - Director of Thang Long Branch, Tien Phong Commercial Joint Stock Bank (TPBank) said that the bank has accompanied Deo Ca Group many times in key infrastructure projects and has recorded positive results.

Mr. Duc affirmed that with its long-term vision and proven capacity, Deo Ca is a partner that TPBank trusts. Therefore, if Deo Ca is assigned to propose and participate in investing in the Da Nang urban railway project, TPBank will continue to commit to accompanying and supporting capital mobilization to ensure the project is implemented on schedule.

In his concluding remarks, Vice Chairman of the Da Nang People's Committee Le Quang Nam highly appreciated the careful preparation and serious research of Deo Ca Group, and affirmed that the city will review the project proposal to select a suitable investor. He emphasized that the entire bidding process will be organized publicly, transparently and in accordance with legal regulations.

Currently, Da Nang does not have an urban railway system. However, according to the development plan until 2030, the city will begin to form a network with 2 lines, total length of 24 km. In the longer term, by 2040 there will be 3 lines with 49 km, and by 2045 it will expand to 11 lines with 131 km.

According to the orientation, the master plan includes 2 metro lines (MRT), 11 light rail lines (LRT) and 3 tourist LRT lines, to meet urban traffic needs as well as develop services associated with tourism.

The investment phase is divided into phases: by 2030, 2 routes will be formed, 3 more routes will be deployed in phase 2031 - 2040, and from 2041 - 2045, the network will be completed with 11 routes.

Source: https://baodautu.vn/he-lo-phuong-an-dau-tu-tuyen-duong-sat-do-thi-da-nang---hoi-an-d383788.html