 |
The Deo Ca Tunnel BOT project requires an additional VND2.28 trillion of State capital. |
The Ministry of Transport (MoT) has recently presented a report to the Government regarding the challenges and shortcomings encountered in several traffic BOT (Build-Operate-Transfer) projects. It has proposed a solution that involves allocating VND10.34 trillion of State capital to terminate contracts for five projects and provide additional funding for three others.
To address the issue, the Ministry of Transport has identified five projects that require a total of VND6.81 trillion in State capital to compensate investors and terminate contracts before the deadline.
These projects include the Binh Loi Bridge BOT project, which requires VND571 billion due to the inability to collect tolls when the waterway port is not invested as planned.
The BOT project of the Western Belt Road in Thanh Hoa City, which is a part of the National Highway No.1 BOT project and bypasses Thanh Hoa City, requires VND892 billion due to the unfeasible location of the toll station.
The upgrade and renovation project of National Highway No.91 in Can Tho City requires VND1.75 trillion because its T2 toll station is not allowed to collect fees.
The Thai Nguyen-Cho Moi Road BOT project and the renovation project of National Highway No.3 at the km75-100 section require VND2.85 trillion because only one of the two toll stations can operate.
Additionally, the Ho Chi Minh Road BOT project from km1,738+148 to km1,763+610 requires an allocation of VND745 billion due to the unfeasible financial plan when vehicles switch to the free bypass route of Buon Ho Town.
The Ministry of Transport has suggested using VND3.53 trillion of State capital to supplement three projects and extend their toll collection periods.
The Deo Ca Tunnel BOT project requires an additional VND2.28 trillion of State capital to replace the free toll collection on the La Son-Tuy Loan route. This route will collect tolls for the State budget. This extension will prolong the toll collection period of the project by approximately 28 years and four months, as the original toll collection contract was for 27 years and 11 months, contingent on toll collection on the La Son-Tuy Loan route.
The Van Lang Bridge BOT project requires an additional VND533 billion in State capital as its revenue has only reached 28 percent. To address this issue, the investor has agreed to reduce their profit margin by 50 percent, resulting in a reduction of VND402 billion over 22 years. This extension will increase the payback period from 19 years and ten months to 22 years.
Similarly, the Thai Ha Bridge BOT project crossing the Red River needs an additional VND717 billion in State capital as its revenue has only reached 19 percent because vehicles are choosing the toll-free Hung Ha Bridge instead. The investor has agreed to reduce their profit margin by 50 percent, resulting in a reduction of about VND225 billion over 35 years. This extension will increase the toll collection period from 16 years and seven months to 35 years.
In September 2022, the Ministry of Transport proposed allocating over VND13 trillion to "write off" eight BOT projects facing difficulties. The Ministry of Planning and Investment has proposed to the Prime Minister that the Ministry of Transport be fully responsible for information and data, reviewing contract content and legal basis for proposed contract termination, and addressing existing issues that led to the early termination of the project contract.
