The Ministry of Transport is seeking opinions from ministries, agencies and localities nationwide for the fee increase of 12-18% for 37 build, operate and transfer (BOT) operated toll road or bridge projects.
The ministry cited a circular of the Ministry of Finance, saying that BOT projects’ fee rise roadmap is every three years. However, since May 2016, the ministry has not yet raised fees for 59 BOT across the country.
Among the proposed projects, the fee rise should have been applied for two last year, while the remaining 35 need to have higher fees this year. The fee hike will be for 10 projects in 2020 and for two projects in 2021. This will be imposed for other projects after 2021.
The Ministry of Transport also added that contracts signed between the ministry and BOT project investors include articles on the fee adjustments.
The ministry noted that up to 25 out of the 37 projects have seen lower than expected revenues. So without timely solutions, the projects would face bankruptcy.
Earlier, under the Ministry of Transport’s suggestions, the BOT fees should be increased in the 2019-2020 period, prioritising projects with the sharpest revenue decrease.
The second solution is maintaining the current BOT fees temporarily and the fee rise for 49 projects initially scheduled to be carried out in the 2018-2021 period will be delayed after 2022. However, the ministry warned that nine projects would go bankrupt and the government would have to provide VND3 trillion (USD130.43 million) to save them.
The ministry, therefore, preferred the first solution, meaning that the government will not have to spend state budget to save BOT projects.
The Ministry of Transport is to take responsibility for assisting build-transfer-operate (BOT) road investors facing revenue shortages in order to help them secure investment efficiently as well as avoid non-performing loans.
Vietnam needs to untangle bottlenecks facing the logistics sector in order to boost the sectoral development on a par with that of developed countries, insiders have suggested.
The State Audit of Vietnam (SAV) has uncovered several violations in the execution of build-transfer (BT) and build-operate-transfer (BOT) projects as well as at local banks.