Private firms spend big on transport projects
The Ministry of Transport held the meeting to review investments in transport infrastructure projects under the build-transfer (BT) and build-operate-transfer (BOT) formats in 2011-2015.
As reported by the ministry, 62 projects were implemented under the two investment formats, with most of them using BOT for road construction. Enterprises are allowed to collect tolls from the roads and bridges they have built to recover capital.
Private investments have helped improve traffic infrastructure but have exposed transport enterprises and people to heavy toll burdens.
A recent report of the Economic Committee of the National Assembly pointed out risks and problems with BOT projects. Over the years, many BOT infrastructure projects have been put into use across the country while the legal framework for them is still inadequate, putting both road users and investors at risk.
One of the most pressing issues concerning BOT projects is toll collection. There are currently 88 tollgates on national highways, with 74 of them managed by the Ministry of Transport and the remainder by provincial authorities.
Some tollgates do not abide by a rule that requires two tollgates on the same route must be at least 70 kilometers apart.
Deputy Minister of Transport Nguyen Nhat said to make toll fees reasonable, the ministry has requested the Ministry of Finance to issue a circular regulating the setting up of tollgates and fee collections, and consult people to address existing problems and ensure fairness and transparency.
The Ministry of Transport said more than VND1,039 trillion would be needed for traffic infrastructure projects in 2016-2020. But the State budget can cover a mere 11% of the total, so it is essential to continue raising capital from other sources, including the public-private partnership (PPP) format, said the ministry.
The ministry said it has submitted proposals concerning PPP investment to the Government for consideration and approval.
