What responsibilities does VEC have in expanding the Cau Gie - Ninh Binh expressway?

To implement the investment project for the expansion of the Cau Gie - Ninh Binh expressway, Deputy Prime Minister Pham Gia Tuc agreed with the Ministry of Finance's proposal to assign VEC as the managing agency for the project.

Deputy Prime Minister Pham Gia Tuc has just signed a document related to the investment in the expansion project of the Cau Gie - Ninh Binh expressway.

Accordingly, to implement the investment project for the expansion of the Cau Gie - Ninh Binh expressway, Deputy Prime Minister Pham Gia Tuc agreed with the proposal of the Ministry of Finance to assign VEC as the managing agency to implement the project in accordance with the law on public investment.

During the implementation process, VEC is responsible for carefully reviewing and calculating the investment scale and total investment amount, and proactively allocating capital to carry out the project. The central government budget allocated to the project shall not exceed 100 billion VND, ensuring economy, efficiency, and preventing corruption and waste in accordance with the Party's guidelines, the State's laws, and the Prime Minister 's directives.

Toll station on the Cau Gie - Ninh Binh expressway.

The Deputy Prime Minister assigned the Ministry of Finance and VEC (Vietnam Expressway Corporation) full responsibility for the content, information, data, reports, proposals, recommendations, and investment efficiency of the Cau Gie - Ninh Binh expressway expansion project.

Previously, the Ministry of Finance stated that assigning VEC as the managing agency to implement the investment in expanding the Cau Gie - Ninh Binh expressway under the Law on Public Investment with a mixed capital structure, including the participation of the State budget in the form of public investment, has a legal basis.

The Cau Gie - Ninh Binh expressway is currently under the management, operation, and toll collection authority of VEC and is not decentralized to local authorities. Therefore, continuing to entrust it to VEC will offer many advantages in implementation, ensuring the conditions for simultaneous operation and expansion construction.

VEC has also been authorized by the National Assembly to increase its charter capital for the period 2024-2026 to strengthen its financial capacity for investing in expressways.

Businesses can mobilize financial resources to implement investment projects, reducing the investment burden on the State budget, in line with the policy of mobilizing social resources, diversifying forms and methods of investment and construction, management, operation, exploitation, and maintenance of road infrastructure as stipulated in the Road Law.

The Ministry of Finance assessed that implementing the Project under the Law on Public Investment with mixed funding sources, including the participation of the State budget and assigning VEC as the managing agency, has many advantages compared to the implementation option under the BOT contract as stipulated in the PPP Law and implementation under the provisions of the Investment Law.

Firstly, there is a complete legal and practical framework in place for implementation.

Secondly, the Cau Gie - Ninh Binh expressway is currently under the management, operation, and toll collection authority of VEC. Continuing to entrust VEC with the role of the project's investment management agency will ensure consistency in the management, operation, and exploitation of the entire expressway.

Thirdly, after the project is completed, VEC will manage, operate, exploit, and collect tolls for the entire Cau Gie - Ninh Binh expressway. Toll revenue will be accounted for as VEC's income. After deducting expenses, paying taxes as required, and allocating funds, VEC will remit the remaining profit to the State budget annually as stipulated.

Fourth, according to VEC's report, the investment procedure is simpler and shorter by about 18 months compared to the other two options. VEC expects to start the project in Q2/2027 and complete it in Q2/2028.

Fifthly, it aligns with the policy of developing VEC as directed by the Politburo in Resolution No. 79-NQ/TW and document No. 13411-CV/VPTW.

In terms of investment implementation time, the project implementation plan under the Law on Public Investment using mixed capital sources, with the participation of the State budget and assigning VEC as the managing agency, will significantly shorten the preparation and implementation time, contributing to bringing the project into operation as soon as possible to minimize the increasing traffic pressure on the entire route, ensuring safety and meeting the transportation needs of the people.

Source: https://danviet.vn/mo-rong-cao-toc-cau-gie--ninh-binh-vec-chiu-trach-nhiem-nhung-gi-d1429074.html