Masterise Targets $739 Million Expressway Project for Vietnam’s Mega Airport via Warburg Pincus Unit

Vietnam’s dynamic infrastructure landscape is set to receive a significant boost with recent proposals from a subsidiary of U.S. private equity firm Warburg Pincus and the local developer Masterise Group. These proposals focus on constructing an expressway valued at over VND19.52 trillion (approximately $739 million), intended to connect a burgeoning tourism zone to the under-construction Long Thanh International Airport in southern Vietnam. This airport, once completed, will stand as Vietnam’s largest and most modern international gateway.

The plans put forth by Ho Tram Project Co. Ltd., which is backed by Warburg Pincus, aim to create a meticulous four-lane expressway linking the Grand Ho Tram Strip—a sprawling collection of integrated resorts and residential projects—directly to the airport in Dong Nai province. The Grand Ho Tram Strip has become a central piece in Vietnam’s tourism puzzle, promising both leisure and luxury for visitors.

Ho Tram Project’s proposal outlines a clear two-phase financing strategy. Initially, state funding is designated for land clearance and the development of access roads, amounting to about VND6.08 trillion ($230 million). Following this stage, the construction of the 42 km expressway will employ a build–transfer (BT) model, costing around VND13.44 trillion ($508.84 million).

An interesting element of this proposal is the compensation strategy, which suggests using land swaps in its Nam Chau Duc Industrial Park and the Ho Tram 2 resort township to facilitate the project without a direct cash outlay.

In a parallel development, Masterise Group has introduced a plan for a public-private partnership, also utilizing a BT contract. In exchange for their investment in the expressway, Masterise is seeking compensation in the form of 147 hectares of land in the Truong Tho urban area located in Ho Chi Minh City’s Thu Duc city. This represents an innovative approach to leveraging urban expansion along with infrastructure improvement.

Masterise is already recognized for its premium developments, including notable projects such as Masteri Thao Dien, Grand Marina Saigon, and The Global City. Their prior experiences also include approvals for significant infrastructure projects, such as the Phu My 2 and Can Gio bridges, positioning them as a capable partner for large-scale developments.

Currently, Ho Chi Minh City’s authorities are reviewing both proposals. They are consulting with relevant agencies to ensure a comprehensive evaluation before presenting plans to the People’s Committee. This stage of the process emphasizes the precision and diligence required to bring such monumental infrastructure projects to fruition.

The Ho Tram tourism area, which is swiftly establishing itself as a premier destination, was historically part of Ba Ria-Vung Tau province. Recent administrative changes have led to its integration with Binh Duong and Ho Chi Minh City into the newly formed Ho Chi Minh City jurisdiction. This integration adds a layer of strategic importance to the proposed expressway, potentially increasing tourism and accessibility.

In a recent meeting with Prime Minister Pham Minh Chinh, Ho Tram Project’s general director Walt Power reiterated the company’s enthusiasm for the expressway initiative. Highlighting their investment of over $1 billion in Vietnam so far, Power expressed confidence that the development could meet the criteria for additional incentives under existing regulations.