Minister of Construction Tran Hong Minh has backed the public investment option for Hanoi Capital Region Ring Road 5 while requiring a comprehensive assessment of its socio-economic efficiency and advantages over a PPP model before approval.
Minister of Construction Tran Hong Minh has called for a thorough assessment of the socio-economic efficiency of public investment in the Hanoi Capital Region Ring Road 5 project, while expressing support for the proposed funding model.
Minister Tran Hong Minh chairs the appraisal meeting for Hanoi Capital Region Ring Road 5 on July 1.
Chairing a meeting of the State Appraisal Council on July 1 to review the project’s pre-feasibility study, the Minister agreed with the route alignment proposed by consultants, saying it would help create new development space and attract investment along the corridor.
He requested consultants to further clarify the interchange system, including grade-separated and direct interchanges, to avoid future design adjustments that could increase investment costs.
The Minister also urged investors and consultants to complete land clearance demarcation documents as soon as the investment policy is approved, enabling local authorities to begin compensation and resettlement work promptly.
For the section passing through Ninh Binh Province, where urban and industrial areas are concentrated, he asked consultants to study a viaduct option to minimize land acquisition challenges compared with a ground-level alignment.
Regarding project financing, Minister Tran Hong Minh stressed that the project should not rely solely on the central budget. Localities along the route should prioritize resources for land clearance, compensation, resettlement and the construction of parallel roads.
While supporting the public investment approach, the Minister emphasized that consultants must fully evaluate its economic and social benefits compared with a PPP option to ensure efficient use of public funds.
He also instructed investors and consultants to coordinate with local authorities in reviewing construction material sources, disposal sites and transport distances to optimize costs, while clarifying the application of new technologies, technical standards and the investment structure of component projects to support the appraisal process.