Why does Quang Ngai not continue to invest in phase 2 of the National Highway 1A Bypass Project?

Due to the fact that the toll revenue of phase I is not guaranteed, Quang Ngai province cannot work with the BOT investor to expand the National Highway 1A bypass project through Duc Pho town during this period.

According to the feedback of voters of Pho Vinh ward, Duc Pho town, Quang Ngai province, the National Highway 1A bypass project in Duc Pho town has 4 lanes and is divided into 2 construction phases. Phase 1 has been constructed and put into use 2 lanes, BOT toll is being collected. However, the investor has not yet started construction of phase 2. Voters of Pho Vinh ward, Duc Pho town request the Provincial People's Committee to pay attention and give direction.

Responding to this issue, the People's Committee of Quang Ngai province said that according to the financial plan of the two BOT contracts: BOT Duc Pho and BOT expansion of National Highway 1A, the toll revenue at Tu Nghia Toll Station is used to repay capital for the two BOT Duc Pho and BOT Quang Ngai projects (Thien Tan BOT One Member Co., Ltd.).

However, since the National Highway 1A Expansion Project came into operation, due to the impact of the economy , traffic volume through the station has decreased, fees have had to be reduced for people near the station, and the impact of the Covid-19 pandemic has affected the actual revenue of the Project, leading to a significant decrease in the financial plan, which does not ensure the debt repayment capacity of the two Projects. Currently, the monthly revenue is not enough to pay the principal and interest of the bank, only enough to pay the interest on the loan. Therefore, up to now, the Project has not been balanced and the capital has not been recovered.

Due to the above difficulties, the Department of Transport, in coordination with the BOT enterprise, reported to the Vietnam Road Administration to consider implementing phase 2 of the National Highway 1A Bypass Project, the section passing through Duc Pho town, Quang Ngai province to ensure traffic safety during this period, but due to the uncertain toll revenue, it is impossible to work with the BOT investor to carry out the expansion during this period.

In 2023, the People's Committee of Quang Ngai province also said that the people's petition to continue investing in the National Highway 1A Bypass Project (Phase II) through Duc Pho town (now Duc Pho town), according to the People's Committee of Quang Ngai province, is not feasible, causing great risks for investors.

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