VEC wants to increase tolls on 4 expressways from early 2024

Currently, VEC is the investor of 5 expressway projects including Cau Gie - Ninh Binh, Noi Bai - Lao Cai, Da Nang - Quang Ngai, Ho Chi Minh City - Long Thanh - Dau Giay which have been put into operation and Ben Luc - Long Thanh which is under construction.

VEC muốn tăng phí 4 tuyến cao tốc từ đầu năm 2024 - Ảnh 1. — VEC proposes to increase tolls on 4 expressways from early 2024

Of which, Cau Gie - Ninh Binh expressway has been in operation for 12 years, the current price is 1,500 VND/km/standard vehicle (PCU).

Noi Bai - Lao Cai Expressway has been in operation for 9 years, the current price is 1,500 VND/km/PCU for the 4-lane section (Km0 - Km123) and 1,000 VND/km/PCU for the 2-lane section (Km123 - Km245).

The current price for the Da Nang - Quang Ngai Expressway is 1,500 VND/km/PCU. The current price for the Ho Chi Minh City - Long Thanh - Dau Giay Expressway is 2,000 VND/km/PCU.

According to the approved roadmap, the 4 expressways managed and operated by VEC will increase the toll collection every 3 years, each time increasing by 15%.

Specifically, in 2017, the Cau Gie - Ninh Binh expressway increased the toll collection for the first time, the second time in 2020 and the third time in 2023. The Noi Bai - Lao Cai and Ho Chi Minh City - Long Thanh - Dau Giay expressways increased the toll collection for the first time in 2018, the second time in 2021 and the third time in 2024.

However, according to Resolution 35 of the Government on supporting and developing enterprises until 2020 and the direction of the Government leaders and the Ministry of Transport on not increasing road usage fees, from 2017 to 2023, VEC has not increased the collection level according to the roadmap as prescribed in the financial plan.

In 2021, the Ministry of Transport issued Decision 2323 approving the financial plan of 5 expressway projects with VEC as the investor, serving the second appraisal of ADB capital use for the Ben Luc - Long Thanh expressway construction project.

Accordingly, the toll collection for expressways managed and operated by VEC will increase every 3 years, by 12% each time, with the first increase being in 2024.

By the end of 2023, VEC has not increased the service price for using the expressway invested by VEC. According to VEC, the debt repayment cost of this enterprise will increase continuously from 2024, in addition, the projects after the time of putting into operation have reached the deadline for repair, overhaul. Therefore, VEC proposed 3 scenarios for fee increase:

Scenario 1: VEC increases the price of expressway services from 2024 with a schedule of increasing the fee every 3 years, each time by 12%. Total toll revenue of 5 projects in the period of 2024 - 2030 (including VAT) reaches 50,798 billion VND.

The cumulative cash flow of the 5 projects is always positive, VEC ensures debt repayment ability and has enough investment resources to put the Ben Luc - Long Thanh expressway into operation on schedule.

Scenario 2: VEC increases the price of expressway services from 2025 with a schedule of increasing fees every 3 years at a rate of 12%. At that time, the total revenue from toll collection for 5 projects in the period of 2024 - 2030 will reach 48,428 billion VND (including VAT), a decrease of 2,371 billion VND compared to scenario 1.

Accumulated cash flow of 5 projects in the 2026 - 2034 period, with the largest shortfall of VND 1,261 billion in 2033, the financial plan is broken.

Scenario 3: VEC increases the price of expressway services from 2027 with a schedule of increasing fees every 3 years at a rate of 12%. At that time, the total revenue from toll collection of 5 projects in the period of 2024 - 2030 will reach 46,750 billion VND (including VAT), a decrease of 4,048 billion VND compared to scenario 1, with the largest shortfall of 2,301 billion VND in 2034, the financial plan of 5 projects will be broken.

On that basis, VEC proposed that the Ministry of Transport approve the plan to increase the service price for using expressways for projects invested by VEC with the implementation time increased from January 2024.

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