PROJECTS
Feasibility and Structuring of Ninh Binh—Bai Vot Expressway, Vietnam
The problem
Vietnam’s development was hindered by slow and congested inter-city roads. The government wanted privately-financed expressways but had no experience with highway PPPs.
How we helped
Castalia assessed the technical and financial feasibility of a proposal for a privately financed 218 km expressway between Ninh binh and Bai Vot, which was planned as one segment of Vietnam’s North-South Expressway. We completed a market sounding with regional investors to determine how much capital the government could expect to raise. We developed a PPP structure and financing plan, including an estimate of viability gap funding required. In light of the estimated US$2.3 billion financing required and the limited financing capacity of institutions in region, we developed options to divide the expressway into three sections which could be procured separately.
Impact
The Government heeded our advice to divide the expressway into three sections, each of the sections being procured separately. The procurement has been launched, with the goal of selecting winning bidders in 2020. Once built, the expressway is expected to halve the journey time from Hanoi to Bai Vot, from seven hours to three hours.
The client
Our team
How can we help you?
How can we help you?
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
Sinclair House, 3 Glenside Crescent
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (0)1 85 64 10 22
3B Rue Taylor
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-121
Colombia
Thinking for a better world.
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia
Thinking for a better world.