The draft Law on PPP (amended) is proposed to have an additional plan to use state capital to support BOT transport projects in the exploitation phase that are facing financial difficulties, so that investors can continue to perform the contract.
Additional transitional provisions
The Ministry of Transport (MOT) has just issued Official Dispatch No. 12443/BGTVT – CDCTVN to the Government leaders regarding the addition of regulations in the Law on Investment under the Public-Private Partnership (PPP Law) to remove difficulties and obstacles for BOT projects.
In Official Dispatch No. 12443, the Ministry of Transport proposed that the Prime Minister direct the Ministry of Planning and Investment to supplement the Transitional Provisions of the Draft Law on PPP (amended) being submitted to the National Assembly for consideration and approval at the 8th Session.
Specifically, for transport infrastructure investment projects in the form of BOT contracts signed before 2021, using state capital to pay to terminate the contract before the deadline, or using state capital to support the project during the exploitation phase to continue implementing the contract, the Government shall specify the conditions and criteria for BOT projects to be applied.
According to Mr. Nguyen Danh Huy, Deputy Minister of Transport, the Draft Law on PPP (amended) has added regulations, providing sufficient basis for terminating contracts for BOT transport projects. However, there are no clear regulations on the solution of using state capital support during the exploitation phase to continue implementing the contract.
Therefore, during the discussion session in groups and in the hall, some National Assembly deputies proposed to study and supplement regulations on the use of state capital support during the exploitation phase to remove difficulties and obstacles for some BOT projects signed contracts before the promulgation of the PPP Law.
Based on the opinions of National Assembly deputies, the Economic Committee is currently coordinating with the Law Committee, the Ministry of Planning and Investment, and the Ministry of Transport to study the acceptance plan, including proposing a plan to add to the transitional provisions in the Draft Law on PPP (amended), and at the same time assigning the Government to stipulate the conditions and criteria for applicable BOT transport projects.
Accordingly, the supplement in the Transitional Provisions of the Draft Law on PPP (amended) stipulates: "For transport infrastructure investment projects in the form of BOT contracts signed before 2021 (the effective date of the Law on PPP), state capital is used to pay for the termination of the contract before the deadline or state capital is used to support the project during the exploitation phase to continue implementing the contract. The Government shall specify the conditions and criteria for BOT projects to be applied".
"If the National Assembly approves it, there will be enough legal basis to handle difficulties and obstacles in BOT transport projects and there will be no need to continue implementing the Project on solutions to handle difficulties and obstacles in some BOT transport infrastructure investment projects," the leader of the Ministry of Transport assessed.
Ensuring harmony of interests
According to the Ministry of Transport, at the time the National Assembly is considering the Draft Law on PPP (amended), the option to supplement the provisions in the Transitional Provisions in the Draft to handle difficulties and obstacles of BOT projects is appropriate because it only deals with specific groups of projects (BOT transport projects signed contracts before the PPP Law takes effect).
Currently, the whole country has 140 BOT traffic projects, including 66 projects with the Ministry of Transport as the competent authority and 74 projects with localities as the competent authority. 
“The Ministry of Transport will closely coordinate with the Ministry of Planning and Investment to advise the Government on developing conditions and criteria for BOT projects to be applied, and shared responsibilities of the parties (investors and credit-providing banks) to ensure harmony of interests, to prevent exploitation and profiteering of policies, causing loss and waste,” Official Dispatch No. 12443 stated.
Previously, at the end of May 2024, the Ministry of Transport submitted Document No. 5671/TTg-BGTVT to the Government Standing Committee on the Project to handle difficulties and obstacles in BOT transport projects.
In the Project, the Ministry of Transport proposed two solutions to handle difficulties and obstacles in BOT traffic projects.
One is to supplement state capital support (exploitation phase) so that the parties can continue to perform the contract.
Second, terminate the contract and arrange state capital to pay the investor; the investor and the credit providing bank are responsible for sharing the reduction of profits and interest, ensuring harmony of interests.
Also in Submission No. 5671, the Ministry of Transport proposed that the Government unify solutions to handle difficulties and obstacles for 8 BOT projects managed by the Ministry of Transport and submit to the National Assembly Standing Committee for approval a plan to use about 10,650 billion VND from the source of increased revenue and savings from the central budget in 2023 for implementation.
Of these, the State will use the budget to support the termination of contracts for 5 projects; use the budget to support the continued implementation of contracts for 3 other projects.
However, in reality, there are still some projects that have the potential risk of revenue decline (mainly due to investment in parallel highways and cross-roads) but cannot be quantified, such as: BOT National Highway 26 project, risk of revenue decline due to investment in Khanh Hoa - Buon Ma Thuot highway; Upgrading and expanding National Highway 14 project, section Cau 38 - Dong Xoai town (Binh Phuoc) and National Highway 14 expansion project, section Km817 - Km887 (Dak Nong) risk of revenue decline due to investment in Gia Nghia - Chon Thanh highway; Bac Giang - Lang Son highway project and National Highway 1 project, risk of revenue decline due to removal of 1 toll station...
“The number of projects of this type is not much, but if there is no definitive solution, it will greatly affect project enterprises, especially credit institutions and the level of trust and investment attraction environment,” said the leader of the Ministry of Transport.
Source: https://baodautu.vn/ho-tro-du-an-bot-giao-thong-gap-kho-ve-tai-chinh-d230605.html
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