Eight projects selected for ASEAN PPP pipeline

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Eight projects selected for ASEAN PPP pipeline

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Association of Southeast Asian Nations (ASEAN) has short listed eight projects to be potentially implemented under various schemes of public-private partnerships (PPP) resulting from the ASEAN PPP Programme.

The short listed projects were derived from regional and national infrastructure priority pipelines which were subjected to selection methodologies covering a range of criteria pertaining to strategic relevance, level of project development, project feasibility, complexity of implementation and fiscal impact. The short-listing process was conducted through desk review of projects based on available information and consultations with concerned public and private sector officials from the Member States, multilateral and bilateral development organizations and other relevant information sources.

The project briefs were developed under the auspices of the ASEAN Connectivity Coordinating Committee (ACCC). The project briefs were developed by the World Bank with assistance from Mott MacDonald through the support of the ASEAN-Australia Development Cooperation Programme Phase II (AADCP II).

The shortlisted projects include:

* Bien Hoa. Vung Tau Expressway (Viet Nam): This project involves construction and operations & maintenance of Sections I and II of Vung Tau Expressway. The project is expected to be implemented through PPP (Build-Operate-Transfer) model. The proposed expressway is located in the Southern Key Economic Zone and is intended to connect Ho Chi Minh City’s suburban industrial centres in Dong Nai Province with the Cai Mep - Thi Vai international deep sea ports, and to provide relief to National Highway 51, which is forecast to operate over capacity by 2030.

Total estimated project investment cost is US$ 381 million.

* Central Luzon Link Expressway (Philippines): The project involves the construction of Phase II of CLLEX, as well as the Operations & Maintenance of both Phase I & II. CLLEX Phase 2 is a proposed four-lane, 35.7km toll road. Phase 2 will connect Cabanatuan City to San Jose City in Nueva Ecija Province, running in a north-south direction. CLLEX Phase 1 is a four-lane, 30.7-km expressway that is planned to diverge out of Subic–Clark–Tarlac Expressway (SCTEX). The project is planned to start from Tarlac then traversing through Central Luzon in the east-west direction and end in Cabanatuan City. The structure for the contract is Build-Transfer-Operate over a 34-years agreement, where the private sector takes traffic/revenue risk.

The value of the concession is expected to be US$214 million for 34 years of operation.

* Kanchanaburi – Phu Nam Ron Motorway (Thailand): The concession contract comprises the development of a 82km motorway link linking the Kanchanaburi and Dawei Port in Myanmar under a 30-year agreement.

The total project investment is expected to stand at US$ 1.3 billion.

* Laos Road No. 3: ASEAN Highway No. 3 (Lao PDR): The project's scope encompasses operation and maintenance, and potentially upgrading of existing 225 km road, running from Houayxay district in Bokeo province at the Lao-Thai border to the Boten area in Luang Namtha province at the Lao-Chinese borde under a 25-year PPP contract.

* Makassar Port (Indonesia): The project involves the implementation of Phase I, Sections II & III, of the Makassar New Port.

The US$325 million PPP contract will run over 25 years.

* Manado – Bitung Toll Road (Indonesia): The project comprises the construction of Section II, as well as the Operations & Maintenance of Section I & II under a Supported-BOT scheme.

Total estimated project investment cost is US$ 423 million and the duration of the contract will be 45 years.

* North Luzon Expressway East Project (Philippines): The PPP contract comprises the construction and operation of 2x2 lanes and 92.1km long toll road linking Metro Manila to north-eastern part of Luzon under a 30-year agreement.

The total project investment is expected to reach up to US$1.1 billion.

* Trans-Sumatra Toll Road: Kayu Agung – Betung (Indonesia): The contract comprises the Design, construction, operation and maintenance, including finance of 111.69 km segment of TransSumatra Toll Road: Kayu Agung – Palembang – Betung under a 50-year PPP contract.

The total project investment stands at US$1.1 billion.

ASEAN has published a report with more data about the projects and including also a summary of issues that need to be addressed for each project to progress as a PPP. The report can be fund here.

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