The issues of BOT investment transport projects are addressed in the Government report on the implementation of the National Assembly Standing Committee’s resolution from the beginning of the term to 2018.
39 BOT projects had the plans to exempt and reduce the fees of road use services. However, a number of revenues declined compared to their original financial plans for a number of reasons such as: reduced fees, not increased fees according to the contract schedule; reduced number of toll stations…” The fall in revenues not as originally expected will lead to difficulties for the investors and sponsor banks,” the Government said.
The government said it was taking the steps to find the solutions. In addition to reviewing the overall location of the BOT station, in order to thoroughly eliminate the shortcomings of toll stations, the State needs to allocate the capital to buy back the projects.
However, with the current resources, the Government acknowledges that “it is very difficult to balance the buy-back capital”. Therefore, the Prime Minister is assigning the Ministry of Transport to continue to review the report to the Government for consideration and settlement of each station to ensure the harmony of interests between the State, investors and users.
Bach Dang Bridge (Quang Ninh) is invested in the form of BOT. Photo: Minh Cuong
Also according to the Government’s report, some investors did not agree to reduce the loan interest when the construction was not included in the total investment of the BOT project and the cost of capital preservation on the equity, so far, it cannot negotiate and adjust the contracts on some BOT projects. Meanwhile, if the Government unilaterally adjusts the BOT contracts, it may lead to the legal disputes, which will negatively affect the attraction of investors to participate in the PPP projects.
The Ministry of Transport has stopped implementing 14 BOT projects on the old roads, adjusted a number of local items proposed in BOT projects implemented by the People’s Committees of the provinces and cities. However, the localities that have regular lines will continue to require the Prime Minister to make the allocation of capital from the budget to invest in the projects in the form of public investment because these lines have been degraded, affecting the circulation of people.