Deputy Prime Minister Tran Hong Ha chaired a working session with various ministries and departments to discuss solutions for addressing challenges and difficulties in several BOT transportation projects
On the morning of April 24, Deputy Prime Minister Tran Hong Ha chaired a working session with several ministries and departments to discuss solutions for addressing challenges and difficulties in several BOT transportation projects.
Deputy Minister of Transport Nguyen Danh Huy stated that out of a total of 140 BOT transportation projects implemented before the enactment of the Law on Investment under Public-Private Partnership (PPP), the Ministry of Transport currently manages eight projects with toll stations that require further processing. These eight projects are divided into three groups.
Group one consists of two projects with declining revenue and no prospect of recovery (Thai Ha Bridge and Ba Vi-Viet Tri Bridge).
Group two includes the Deo Ca tunnel project, which collects tolls to repay debts through the La Son-Tuy Loan toll station.
Group three comprises two projects that have been completed but are not collecting tolls (Thanh Hoa City bypass route and Binh Loi Bridge); two projects that are only collecting tolls at one of two stations, leading to a decline in revenue and requiring additional state capital, which remains infeasible (National Highway 91 through Can Tho City and the Thai Nguyen-Cho Moi section and the upgrading and rehabilitation of National Highway 3, Km75-Km100); and one project with declining revenue and potential risks to security and order (National Highway 14 through Dak Lak).
BOT project to upgrade and rehabilitate National Highway 91 in Can Tho City Photo: Ca Linh
Depending on the specific project, the Ministry of Transport has proposed amending contracts and providing additional state capital to support project continuation or early contract termination.
Additionally, several BOT projects under local management have toll stations that pose potential risks to security and order and have therefore not collected tolls. These projects have experienced revenue losses due to lower-than-expected demand for transportation resulting from socio-economic difficulties or the presence of parallel transportation routes.
“The solution will involve working together to overcome obstacles and shortcomings and minimize losses while adhering to the principle of ‘balancing interests and sharing risks’,” stated Mr. Nguyen Danh Huy.
At the conference, Deputy Minister of Planning and Investment Do Thanh Chung emphasized the need for a comprehensive assessment of the BOT “landscape” nationwide, particularly the causes of difficulties and obstacles, in order to propose a comprehensive and definitive package of solutions.
Deputy Governor of the State Bank of Vietnam Dao Minh Tu also highlighted that without resolving the challenges facing BOT transportation projects, it will be difficult to attract socialized capital for investment in transportation infrastructure development, specifically, and socio-economic development in general, under the PPP model.
Concluding the meeting, Deputy Prime Minister Tran Hong Ha directed the Ministry of Transport to adhere to the content of Conclusion Notice No. 428/TB-VPCP, promptly finalize a report clarifying the causes of difficulties and obstacles in the aforementioned eight BOT projects, as well as in BOT transportation projects implemented before the enactment and entry into force of the PPP Law.
“Proposed solutions must prioritize the interests of the people and businesses, ensure rigor and transparency, and prevent abuse of authority for personal gain or the evasion of responsibilities and obligations under signed project contracts,” emphasized the Deputy Prime Minister.
In March 2024, the Ministry of Transport submitted a proposal to the Government with solutions for addressing challenges and difficulties in the aforementioned eight BOT projects, totaling approximately 10,650 billion VND.
Specifically, the first group involves amending contracts and providing additional state budget funding to support two projects with declining revenue and no prospect of recovery, with a total capital requirement of 1,557 billion VND.
For the second group, the Ministry of Transport proposed allocating approximately 2,280 billion VND from toll revenue on the Ho Chi Minh Highway, La Son – Tuy Loan section, to support the Deo Ca tunnel project. The toll collection period is estimated to be 28 years and 4 months. The La Son – Tuy Loan Expressway will explore options for collecting tolls and depositing them into the state budget.
For the third group, the Ministry proposed that the Government allocate over 6,810 billion VND to terminate contracts early for five projects.
