Businesses interested in signs, parallel roads PPP project

Vietnam Federation of Commerce and Industry (VCCI) responded to the Official Dispatch of the Ministry of Transport regarding the request for comments on the Circular guiding some contents of investment projects under the public-private partnership method, type of expressway business and management contract (hereinafter referred to as the Draft).

Traffic organization plan

Some investors in the transport infrastructure sector have told VCCI that they are very concerned about the traffic organization of the project and the surrounding area. This issue can affect traffic flow and revenue of expressway projects. Many investors want this content in the PPP contract to reduce the project's revenue risk.

Traffic organization issues that businesses are concerned about often include types of traffic signs, vehicles allowed/not allowed to enter the project as well as connecting roads, access roads, and roads parallel to the project.

According to Decree 32/2014/ND-CP (amended by Decree 25/2023/ND-CP), these issues are currently under the decision-making authority of the Ministry of Transport and/or the Provincial People's Committee.

However, the issue of traffic organization also affects the interests of vehicle owners, residents and businesses in localities with projects. In fact, there are cases reporting to VCCI the situation of placing signs prohibiting trucks on parallel roads to force these vehicles to enter PPP projects.

Therefore, it is proposed that the drafting agency add the following contents to the Draft:

Firstly, add to the contract template issues regarding the traffic organization plan of the highway project as well as the surrounding traffic network (access roads, connecting roads, parallel roads).

Second, more detailed regulations on the issue of consulting the community, especially businesses and business associations in the transportation, tourism and industrial sectors in the region, on the proposed traffic organization plan.

Highway management and operation

Allowing the private sector to participate in the management and operation of highways through O&M contracts not only has the effect of converting public debt into private debt and transferring the revenue risk of the road, but should also be utilized to improve project management and operation capacity.

Private enterprises are often more dynamic and flexible in coming up with project management options to achieve desired outputs.

Therefore, VCCI recommends that the drafting agency consider project management based on output instead of process management.

According to the process management method, the State often sets requirements such as maintenance period, number of people on duty, number of vehicles on duty to carry out traffic diversion, congestion reduction, rescue, etc.

On the contrary, according to the output management method, the State can set output targets such as average traffic speed and during rush hour, time waiting in line to pay tolls, traffic accident rate, time from accident to rescue, damage level, etc. Project enterprises have the right to propose their own measures to manage human and material resources to achieve output targets.

Wisdom

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