FECON inks co-operation agreement with Japanese expressway companies

Tuesday, Jun 06, 2017 17:48

The Nam Cau Gie tollbooth of BOT road project on National Highway No 1. — Photo FECON

Two Japanese expressway companies will transfer their technology and management capacity in transport infrastructure to Viet Nam’s Foundation Engineering and Underground Construction Joint Stock Company (FECON).

The move is part of a strategic co-operation agreement on investment and development of transport infrastructure projects in Viet Nam signed between representatives of Japanese companies East Nippon Expressway Company (NEXCO) and Expressway International Company Limited (JEXWAY), and leaders of FECON and its subsidiary FECON Infrastructure JSC (FCI) in Tokyo today.

The signing ceremony was witnessed by Prime Minister Nguyen Xuan Phuc and his Japanese counterpart Shinzo Abe at the investment promotion forum during Phuc’s visit to Japan from June 4 to June 8.

Under the agreement, NEXCO and JEXWAY will also connect FECON with other Japanese investors and partners, as well as create opportunities for investment in transport infrastructure in other countries in the region.

In the first phase of co-operation, the two Japanese companies will buy 20 per cent stake owned by FECON in its BOT (build-operate-transfer) project that includes a bypass road on National Highway No 1 at Phu Ly town and reinforcement works at Km215+775-Km235+885 of the northern province of Ha Nam.

NEXCO and JEXWAY will take part in managing and operating the project, as well as applying their experience and advanced management technology to this project.

The two Japanese companies are the first foreign businesses participating in the BOT transport sector in Viet Nam.

Miyaike, chairman and CEO of NEXCO, said the signing of the agreement and purchase of the stake marked the start of partnership co-operation with Vietnamese potential companies, such as FECON and FCI, as well as its official participation in a project in Viet Nam.

Miyaike also committed that NEXCO would co-operate with FECON to conduct researches on expressway projects in the country.

Pham Viet Khoa, chairman of FECON, said the participation of NEXCO and JEXWAY in Phu Ly bypass road project would make a great contribution to its success and bring about Japan’s scientific operation and exploitation method to Viet Nam.

The Phu Ly bypass road project was kicked off in 2014 and completed in 2016. The 43-km project had more than VND2.04 trillion (US$89.6 million) investment through a joint venture among FECON, Cotec Construction Joint-Stock Company (Coteccons) and Civil Engineering Construction Corporation 1 (Cienco 1) with ownership of 40 per cent, 35 per cent and 25 per cent, respectively. — VNS

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