National Highway 51 suddenly... 'ownerless'

The BOT project on National Highway 51 has stopped collecting tolls since 2023, but it has not yet been established as a public asset, so it cannot be upgraded - Photo: A Loc

While the dispute between investors and competent state agencies remains unresolved and drags on, millions of people in the region continue to suffer from difficult transportation, traffic jams, congestion, and missed business opportunities.

That is a waste that can be measured in "enormous" amounts of money.

Procrastination on BOT contracts

Prior to the implementation of the BOT project for National Highway 51, the Ministry of Transport had undertaken a project to expand National Highway 51 using a loan from the Vietnam Development Bank (VDB), with repayment through toll revenue at toll station T1 on National Highway 51.

Due to the lack of investment efficiency, the Ministry proposed that Bien Hoa - Vung Tau Expressway Development Joint Stock Company (BVEC) be granted the right to collect tolls at toll station T1 with a contract value of 400 billion VND, a fixed interest rate (7.75%/year), and no profit for the investor.

Subsequently, the transfer value of the toll collection rights at station T1 was included in the total investment for the BOT National Highway 51 project when implementing this project.

The BOT contract signed between the Department of Roads and BVEC in 2009 stipulated that the deadline for recovering the investment under the principal contract for transferring the right to collect tolls at station T1 was July 10, 2013; the total toll collection period for the BOT project to expand National Highway 51 was approximately 20.66 years.

Specifically, the toll collection period for capital recovery is approximately 16.66 years (from August 3, 2012 to March 27, 2029); the toll collection period for profit generation is 4 years (from March 28, 2029 to March 28, 2033).

By February 2017, the toll collection period for the BOT National Highway 51 project was adjusted to 20 years, 6 months, and 11 days.

This period runs from July 1, 2009 to January 12, 2030, encompassing 4 years and 24 days of revenue collection under the toll collection rights sale contract at station T1 (from July 1, 2009 to July 24, 2013) and 4 years of profit-generating toll collection.

However, by the end of 2018, due to some changes related to input factors and recommendations from the State Audit Office, the Department of Roads recalculated the toll collection period for profit generation from 4 years down to 9 months.

And the Department of Roads temporarily suspended toll collection for the BOT project on National Highway 51 from 7:00 AM on January 13, 2023. In April 2024, the Ministry of Transport sent a document to the Ministry of Finance requesting the establishment of public ownership of the assets of the BOT project on National Highway 51.

However, the Ministry of Finance has requested the Ministry of Transport and the investor to address the outstanding issues and complete the necessary documentation to proceed with the next step.

When two sides have differing viewpoints and cannot reach an agreement, it is necessary for an independent body to arbitrate. To definitively resolve such matters, arbitration centers and courts may be needed.

Dr. Pham Viet Thuan (Director of the Institute of Resource and Environmental Economics, Ho Chi Minh City)

Negotiations have been held 19 times without a resolution.

According to a report from the Department of Roads, the Ministry of Transport has completed the dossier and submitted it to the Ministry of Finance to establish public ownership of the BOT National Highway 51 project in accordance with the law on public assets.

All BOT (Build-Operate-Transfer) transportation project contracts stipulate that any disputes must be resolved through negotiations between the state management agency and the investor to reach an agreement.

To date, the Department of Roads has negotiated 19 times with the investor of the BOT project on National Highway 51 regarding the termination of the contract, but there are still outstanding issues that need to be addressed.

According to the law, the lack of established public ownership and the existing issues of the BOT contract do not affect the mobilization of funds for the maintenance and repair of National Highway 51, according to a representative from the Planning and Investment Department (Vietnam Road Administration).

In fact, the Road Management Area IV has been assigned the task of managing and maintaining the infrastructure. However, because this is a vital road with extremely high traffic volume, maintenance and repair alone are insufficient to meet the needs.

According to the Department of Roads, the next phase will involve reviewing and researching proposals for investment in upgrading National Highway 51 using public investment funds.

The entire Southeast region of Vietnam hopes for a comprehensive overhaul of National Highway 51 soon - Photo: A Loc

It needs to be resolved completely.

While negotiations were underway, the reality was that National Highway 51 was constantly deteriorating and could not yet be completely overhauled.

The provinces of Dong Nai and Ba Ria - Vung Tau, through which the road passes, are also very "impatient," constantly urging the Ministry of Transport to quickly complete the procedures for establishing public ownership.

Recently, a delegation from the National Assembly and the Traffic Safety Committee of Dong Nai province continued working with representatives of the Vietnam Road Administration, requesting that while awaiting the establishment of public ownership, road maintenance and repair are necessary to ensure traffic safety in the area.

Dr. Pham Viet Thuan, director of the Institute of Resource and Environmental Economics in Ho Chi Minh City, believes it is difficult to understand why a BOT contract, which should have been meticulously drafted, has been the subject of controversy for several years.

This is a vital route for the Southeast region, and the delay in completing the procedures for public ownership to allow for timely upgrading and overhaul of the road will cause enormous waste.

Transportation expert Nguyen An stated: "The problems with the BOT contract for National Highway 51 are like a blood clot blocking traffic on this vital artery. The contract delays have dragged on for nearly two years; should the people have to wait another five years or even longer?"

Regarding this pressing issue, the Ministry of Transport needs to take the lead in resolving it definitively, ensuring overall harmony among all parties involved."

Avoiding and shifting responsibility.

The BOT contract for National Highway 51 was assigned by the Ministry of Transport to the Vietnam Road Administration as the agency responsible for signing the contract with the investor.

However, more than 1 year and 8 months have passed since toll collection stopped, but the Vietnam Road Administration has still not resolved the outstanding issues necessary to establish public ownership of this project.

To avoid shirking responsibility and shifting blame, which could negatively impact work efficiency and the resolution of outstanding issues, the Vietnam Expressway Administration requests that relevant agencies and units fulfill their roles, responsibilities, and authority within their respective jurisdictions in the project implementation.

The Vietnam Expressway Authority requests that the Vietnam Road Administration fully perform its functions and duties as the contract signing agency assigned by the Minister, and only report to the Ministry of Transport on issues beyond its authority for consideration and resolution.

Simultaneously, urgently inspect, review, and work with the investor to clarify responsibilities for maintenance work, develop solutions for road maintenance, and ensure safety in accordance with regulations.

The Vietnam Expressway Administration, acting as the lead agency in the review team, will preside over and coordinate with relevant agencies to review the implementation results of the Vietnam Road Administration (if any), and advise the Ministry of Transport on matters related to the project contract...

Source: https://tuoitre.vn/quoc-lo-51-bong-nhien-vo-chu-20241022080657802.htm