The government decided to stop the PPP model for the expressway

The DPM assigned the provincial people’s committees of Son La and Hoa Binh to work with the Ministry of Planning and Investment, the Ministry of Transport, and relevant agencies on studying an appropriate investment model, with public investment being included to continue the construction.

The expressway project had its investment plan approved by the prime minister in May 2019, in a PPP model, aiming to meet the travel demand of the region and serve economic development.

The project of 85 km length was met with a number of challenges during the construction, related to total investment, contracts, local project management capacity, and lack of attraction of investors and credit institutions, among others.

Facing these challenges, Son La People’s Committee submitted to the prime minister the proposal to stop the PPP model for the project and use state funding for its construction instead.