VietNamNet Bridge - Given that the National Highway 14 after two years of construction remains "sluggish" is the great responsibility of investors, four affected provinces asked the Government to reconsider the investment plans because with the current project, local people will suffer.

On the morning of September 18, the monitoring group of the National Assembly worked with four Central Highland provinces related to the "lumbering" construction of Ho Chi Minh road (Highway 14).

Deputy Director of the Department of Transportation of Gia Lai province, Mr. Vo Van Van said that in addition to the objective reasons that cause the construction of National Highway 14 in Gia Lai province to be delayed, there is the responsibility of investors with their weak capacity. Some contractors have decided to withdraw from this project and their bidding packages have not yet been settled.

Director of the Department of Transport of Dak Nong province, Mr. Nguyen Van said, by September 17, the Duc Long Gia Lai Group (which won 10 bidding packages to build 70 km of the National Highway 14 in the form of BOT in Dak Nong province) had still not fulfilled procedures as committed to the province. Currently, this work is still unfinished and waiting for capital.

According to the People's Committee of Gia Lai province, Duc Long Gia Lai is struggling for capital. Local banks do not lend this company and if it has to borrow capital from domestic credit institutions, it will not be profitable.

Mr. Tran Duc Khanh, Deputy Chief of the Central Highlands Steering Committee, said that the Government has given priority policies to the Central Highlands but the government approved the National Highway 14 project in the form of BOT (build-operate-transfer).

"So there is no priority at all. Contractors naturally want profit and of course all profits will pour on the shoulder of people," said Khanh.

Sharing the same point of view, Mr Hoang Cong Lu, Vice Chairman of Gia Lai province, said that the government should rethink, because if using BOT form, contractors are required to collect tolls and people will have to pay for it.

"The Road from Kon Tum city to Dong Xoai town is over than 600 km, but contractors recommended setting up 15 tollbooths. Particularly, Gia Lai has only 65 kilometers of National Highway 14 but Duc Long Gia Lai company proposed to establish two toll stations. How can people sustain it ", he said.

Mr. Pham Hong Son, General Director of the Ho Chi Minh Highway management board, said, contractors proposed to set up 15 toll stations from Kon Tum City to Dong Xoai town, but after making a survey, the number of toll stations has been cut down to 9 and the distance between the stations is 70 km.

Mr. Son also offered the following solution: contractors of the Ho Chi Minh Highway to be exempted from corporate income tax during the period of operating the highway in order to shorten the payback period.  At the same time, the application of BT (Build-Transfer) form will be permitted for some bidding packages that are difficult to raise capital for investment in the form of BOT.

According to Son, for the Central Highlands, this project should be put into the list of calling for ODA (official development aid).

Mr. Le Bo Linh, Deputy Director of the Committee for Science, Technology and Environment of the National Assembly said that the loss caused by the lumbering implementation of National Highway 14 project reached 10 percent of the total investment that was not to mention the indirect loss.

"In terms of solution, it is too good if this project is listed as an ODA-funded project but it will be a long time to call for capital. The capital raised from government bonds has arranged all to the key projects to early 2015. The National Assembly has no plans to issue new bonds," Linh said.

Compiled by Tran Cham