The Vietnam Road Administration spoke out about the BOT investor stopping the maintenance and maintenance of National Highway 51

BVEC also announced that it is not responsible for ensuring traffic safety on National Highway 51. This BOT investor gave the reason for stopping the maintenance of National Highway 51 because the Road Administration of Vietnam requested it. to temporarily suspend the collection of tolls for the National Highway 51 BOT project.

Although complying with the toll collection, BVEC said that the request to stop toll collection was a violation of the contract signed between the Ministry of Transport and BVEC in 2009.

In this regard, the representative of the Road Administration of Vietnam has just received information to return. Accordingly, the Vietnam Road Administration said that during the project implementation during the exploitation business, a number of conditions specified in the project contract changed such as settlement investment costs, interest rates, etc. loans, rates of collection, revenues, traffic flow… and the State Audit recommended the project’s capital preservation fee.

During the negotiation process when contract conditions changed, there were some problems such as no specific provisions on adjustment terms in the project contract and no guiding legal documents such as preserved interest. capital, calculate interest for other capital mobilized by investors for the project, time to collect fees to create profit.

Problems such as capital preservation interest and profit-making fee collection time are also common problems of BOT projects signed before the date of Circular No. 166/2011/TT-BTC of the Ministry of Finance (regulations on management and use of project preparation costs and operating funds of competent state agencies in the process of project management; a number of financial indicators of project contracts, etc.) take effect.

The above problems have been reported by the Ministry of Transport and consulted with the Prime Minister. In Resolution No. 11/2020/NQ-CP, the Government assigned the Ministry of Transport, based on the law from time to time, the provisions of the project contract and the transitional provisions of Decree No. 108/2009/ND-CP of the Government to make finalization of BOT and BT contracts before the effective date of Circular 166/2011/TT-BTC.

Carrying out the functions and tasks of competent state agencies, the Vietnam Road Administration has actively negotiated with investors, project enterprises, sponsoring banks and related units to solve the problem. problems arising and adjustment of the time for profit-making fees according to the provisions of the project contract.

From 2019 to January 13, 2023 (the date of suspension of toll collection), the Ministry of Transport and the Road Administration of Vietnam coordinated with relevant agencies and units to review the project contract, through 18 negotiation sessions with BVEC, investors, and funding banks to solve problems and negotiate to adjust the time for profit-making fees.

At the time of suspension of collection, the project still had some problems that the parties could not agree on a solution such as: Preservation of equity (8.7%/year) during construction and operation. waterfall. In addition, calculating interest as loan capital in the construction period for fee revenue in the period 2009 – 2015 (375 billion dong); plan for calculating loan interest for deductions in the exploitation period; profit-making fee collection period.

“In order to avoid toll collection beyond the project’s deadline, affecting the interests of the State and the people, the Department of Roads of Vietnam reported to the Ministry of Transport and decided to suspend the project toll collection on the same day. January 13, 2023 to continue negotiating and solving problems,” said the Vietnam Road Administration.

Assessing the suspension of BVEC for traffic safety, regular maintenance and maintenance, the Vietnam Road Administration said that according to the provisions of the BOT contract, BVEC is responsible for managing and maintaining repair and maintain BOT works until the BOT works are transferred to competent state agencies to receive BOT works.

During the time when the project has not been handed over to the road management agency, BVEC is fully responsible for the management and maintenance of the project and ensures traffic safety on the route.

The Department of Roads of Vietnam also said that it has directed its affiliated agencies and units to coordinate with BVEC to complete the procedures for receiving and handing over construction assets in order to preserve construction assets in accordance with regulations and complete the procedures. improve the procedures for receiving and handing over project assets and establishing ownership rights of the whole people.

The Vietnam Road Administration suggested that BVEC actively work with agencies and units under the Vietnam Road Administration to continue negotiating and handling problems.

Previously, the Vietnam Road Administration has announced to suspend the collection of tolls for BOT projects for investment and construction of National Highway 51 expansion from 7:00 am on January 13, 2023 because the project has fully collected capital. When returning capital for the project, the Ministry of Transport has calculated all 4 years of collecting fees to create profits for investors. When stopping toll collection from January 13, the Vietnam Road Administration also requested BVEC to continue to manage and maintain the works to ensure smooth and safe operation until the time of handing over the works.