Total investment for the BOT road tunnel project through Deo Ca reduced by 7,250 billion VND

The total investment for the BOT road tunnel project through Deo Ca Pass has been reduced by 7,250 billion VND.

The total investment for the BOT road tunnel project through Deo Ca Pass (including Deo Ca Pass, Co Ma tunnel, Cu Mong tunnel, and Hai Van tunnel) after adjustment is VND 18,903.89 billion, including interest on loans during the construction period.

The BOT road tunnel project through Deo Ca Pass is a model example of a transportation infrastructure project implemented under the PPP (Public-Private Partnership) model.

The Minister of Transport has just signed Decision No. 397/QD-BGTVT approving the revised feasibility study report for the road tunnel project through Deo Ca Pass (including Deo Ca Pass and Co Ma tunnel, Cu Mong tunnel and Hai Van tunnel) under the BOT contract form.

Accordingly, there are three additional investment items added to the Project during implementation: the construction of Suoi Dua Bridge (Km1370+402, National Highway 1); the construction of Cu Mong Pass Tunnel; and the expansion of Hai Van Road Tunnel (including the operation of Hai Van Tunnel through the pass).

The Ministry of Transport has decided to adjust the total investment for the project down to VND 18,903.89 billion, including compensation, support, and resettlement costs: VND 593.44 billion; construction and equipment costs: VND 13,254.16 billion; project management, consulting, and other costs: VND 1,988.12 billion; operating costs for the Hai Van tunnel through the pass during the 2016-2017 and 2018-2020 periods: VND 455.72 billion; interest on loans during the construction period (estimated): VND 2,612.45 billion; and contingency costs: VND 0 billion.

Compared to Decision No. 3107/QD-BGTVT dated October 5, 2016, of the Minister of Transport approving the feasibility study report for the BOT road tunnel project through Deo Ca Pass, the total investment after adjustment decreased by VND 7,250 billion, most notably a reduction of VND 2,049.78 billion in equipment and construction costs; a reduction of VND 1,209 billion in interest expenses during construction; and a reduction of VND 3,052 billion in contingency costs...

The total investment for the BOT road tunnel project through Deo Ca Pass will be precisely determined upon final settlement of the project.

The aforementioned changes have led to changes in the capital structure for the Project. Specifically, according to Decision No. 397, the BOT capital for the Project is VND 14,127.27 billion.

The State funding supporting the Project is VND 4,776.62 billion, including VND 90 billion from the State budget: used to support land clearance for the Deo Ca tunnel; VND 3,506.62 billion from Government bonds used to pay for the BT portion of the Co Ma tunnel, access roads, land clearance and resettlement costs; and VND 1,180 billion from the medium-term public investment budget for the period 2021-2025, used to support the construction of the Deo Ca tunnel (VND 1,065.29 billion) and support compensation, land clearance and resettlement for the Project (VND 114.71 billion).

Other provisions remain unchanged from previous decisions of the Minister of Transport.

The Ministry of Transport has assigned Project Management Board 85 to implement the following tasks in compliance with legal regulations; to continue reviewing and finalizing procedures for adjusting the financial plan, adjusting the contract, carrying out payment and settlement work, and other related matters as prescribed; to be responsible for inspecting and reviewing the project's funding sources, developing a capital plan, and completing all capital procedures for the project as prescribed; and to ensure that the use of state capital supporting the project is for the correct purpose, target, and in accordance with the law, National Assembly resolutions, and the project's investment efficiency.

The Project Management Board 85 is also responsible for strictly managing and controlling construction investment costs; managing contracts, acceptance testing, and final settlement of capital and project investment costs, ensuring full legal basis and compliance with legal regulations.

It is known that the BOT project for the road tunnel through Deo Ca Pass was initially approved by the Minister of Transport in Decision No. 47/QD-BGTVT dated January 6, 2012. During the implementation process, several items were added to the project in accordance with regulations and the funding source for the project was adjusted.

As of the end of December 2020, all components of the BOT project for the road tunnels through Deo Ca Pass have been completed, including the Deo Ca and Co Ma tunnels and access roads completed in August 2017; the Cu Mong tunnel completed in March 2019; and the Hai Van tunnel completed in December 2020.

The project, once operational, has proven effective in terms of investment, significantly reducing the risk of traffic accidents on National Highway 1.

However, during the process of allocating state budget funds to support the project, the Ministry of Planning and Investment, in document No. 5373/BKHĐT-PTHTĐT dated July 10, 2023, reported to the Prime Minister that: “During implementation, the Project has undergone many changes in scale, total investment, capital structure, and investment form. All additional items were approved in separate decisions and were not included in the initial overall project. To date, there has been no decision approving the overall Project, which would serve as the basis for allocating annual capital plans in accordance with Article 53 of the Law on Public Investment. The allocation of annual capital plans falls under the authority of the Ministry of Transport.”

On September 20, 2023, Deputy Prime Minister Le Minh Khai issued Notice No. 386/TB-VPCP from the Government Office, requesting the Ministry of Transport to be responsible for completing all procedures and ensuring that the use of state capital supporting the Project is in accordance with regulations and investment efficiency, preventing corruption, waste, loss, and negative practices.

Source: https://baodautu.vn/tong-muc-dau-tu-du-an-bot-ham-duong-bo-qua-deo-ca-giam-7250-ty-dong-d212571.html