CII Plans VND 16.4 Trillion Elevated Road on National Highway 51

Overview

CII (HOSE: CII) has received a resolution from the Dong Nai Provincial People’s Committee approving the investment in a 6.2 km elevated road along National Highway 51 under a BOT contract. The total investment is over VND 16,400 billion (approximately USD 656 million). The project is expected to alleviate chronic congestion on this key route linking Ho Chi Minh City with Dong Nai and Ba Ria-Vung Tau provinces.

Key Facts

• Total investment: over VND 16,400 billion (approx. USD 656 million).
• Project length: 6.2 km, including more than 4.6 km of elevated viaduct.
• Design speed: 80 km/h, with 6 lanes on the main bridge.
• Construction cost accounts for over 44% of total investment; land clearance and compensation account for nearly 30%.
• Land clearance required: approximately 58.2 hectares, affecting about 49 households.
• Project will be implemented under a PPP model with a BOT contract.
• The consortium includes CII, CII Service, IMIC, and Ha Tang Land.

What Happened

CII announced that it has received a resolution from the Dong Nai Provincial People’s Committee approving the investment policy for an elevated road project along National Highway 51. The project spans from Ngã tư Vũng Tàu to the Vo Nguyen Giap intersection with the Bien Hoa-Vung Tau expressway. The consortium led by CII will prepare the project documentation.

The elevated road will have a total length of 6.2 km, with over 4.6 km of viaduct. The main road will be designed as an urban arterial with a speed of 80 km/h and six lanes. The project also includes upgrading the existing road below to four motor vehicle lanes and two mixed lanes, along with intelligent traffic systems and toll collection systems.

Market Context

CII is a leading infrastructure developer listed on HOSE, known for major projects such as the Hanoi Highway expansion and the HCMC-Trung Luong-My Thuan expressway. The stock has been volatile amid broader market weakness and concerns about debt levels. This new project, if executed, could provide a long-term earnings boost but also adds to the company’s financial commitments.

Strategic Significance

The elevated road addresses severe congestion on National Highway 51, a critical corridor near Long Thanh International Airport and several expressways. For CII, this project strengthens its portfolio of transport infrastructure assets and aligns with its TOD strategy in the HCMC region. The BOT structure allows CII to generate recurring toll revenue, though the large investment requires careful financing.

What to Watch

• Completion of feasibility study and final investment approval from central authorities.
• Financing plan details, including debt and equity contributions from the consortium.
• Land clearance progress, as delays could impact timeline.
• CII’s debt levels and cash flow from existing BOT projects.
• Potential for similar PPP projects in the region as infrastructure spending accelerates.