“When the sparrow is confused, the eagle is also worried”

The Ministry of Transport is working with investors of 8 BOT projects.

On the morning of November 7, participating in the debate with the Minister of Transport, delegate Nguyen Quang Huan (Binh Duong) discussed the solution for 8 loss-making BOT projects, which is to reduce the investor's profit and negotiate a reduction in the bank's capital profit.

Mr. Huan said that this would be an unbalanced negotiation because the nature of banking is capital business, if profits decrease, will they be able to stand firm?

Regarding businesses, Mr. Huan said that businesses spend dong to get dimes because they expect future profits. Now asking them to reduce profits will affect confidence. "If the sparrow is confused, the eagle is also worried," Mr. Huan said.

To solve this problem, the Binh Duong delegation suggested using the budget allocated to the transport sector to restructure and support projects that have to stop operating early. In case the budget is not enough at one time, there should be a roadmap for many years. "We need to announce a roadmap for handling the problem so that people can feel secure, rather than staying silent, not explaining or explaining," said Mr. Huan.

Dialogue - BOT project shortcomings: — Delegate Nguyen Quang Huan, Binh Duong (Photo: Quochoi.vn).

Responding, Minister Nguyen Van Thang said that the Ministry of Transport is working closely with investors and banks on 8 BOT projects "on the basis of negotiations because this is a contract signed between two parties", the principle is harmonious benefits, shared risks. The agencies are researching so that investors can recover their capital.

"It cannot be determined that investors will not make any profit or that banks must waive all interest," Mr. Thang said, proposing to use the budget to buy back 5 projects, while 3 projects will be supported at less than 50% according to legal regulations.

Previously, the Ministry of Transport negotiated with investors and banks to arrange state capital to pay investors, terminate contracts ahead of schedule for 5 projects; amend contracts and supplement state capital for 3 projects. The 5 projects expected to terminate BOT contracts ahead of schedule include: Thanh Hoa City Western Bypass; Binh Loi Railway Bridge; Thai Nguyen - Cho Moi Road and upgrading National Highway 3; Ho Chi Minh Road; upgrading National Highway 91 in Can Tho City.

Three projects are expected to have their contracts amended and state capital added, including: BOT Ba Vi - Viet Tri Bridge; BOT Thai Ha Bridge and BOT Deo Ca Tunnel. It is expected that the state capital to handle the eight loss-making BOT projects will be about VND10,340 billion.

Assessing the level of revenue decline of BOT projects

Questioning the Minister of Transport, delegate Nguyen Thi Minh Trang (Vinh Long delegation) reiterated the Minister's statement in the previous session, saying that the Ministry is researching using sea sand as a material for roadbed construction.

Ms. Trang asked about the implementation status so far and whether using sea sand instead of river sand to solve the urgent need for raw materials for the North-South expressway project is feasible?

Female delegate Nguyen Thi Minh Trang also cited forecast information that after the completion and operation of the North-South Expressway component projects, the BOT component projects will have their traffic load shared. This will greatly affect the financial plans of investors.

Ms. Trang asked the Minister of Transport to let her know how many BOT projects were affected and solutions to ensure harmony between the interests of the State, people and businesses.

In response, the Minister of Transport said that in order to meet the demand for sand for foundations for special transport projects in the Mekong Delta region, last March, the Prime Minister assigned the Ministry of Transport to coordinate with the Ministry of Natural Resources and Environment to conduct a study on piloting the use of sea sand as a construction material for transport infrastructure and construction. After that time, the Ministry established an implementation team.

After piloting sea sand on traffic works in the Mekong Delta, Minister Thang said the research results showed that the quality of the sea sand material being piloted met the requirements for embankment materials as well as the criteria for load capacity and stability of works using sea sand as roadbed, with similar values to river sand, and currently there are no signs of environmental impacts such as on crops and livestock.

At the request of experts, the pilot sand bar was expanded to different environments such as Hai Phong and Ba Ria - Vung Tau, in order to conduct more comprehensive research.

It is expected that in December, the council will meet and have a final assessment of the sea sand project. On that basis, the Ministry of Transport will coordinate to develop standards and regulations, expand the pilot to a number of highway projects as well as allow the use of sea sand as filling material.

However, the Minister of Transport said that sand exploitation still needs to be sustainable and not affect the environment.

Regarding BOT projects , Minister Nguyen Van Thang said that some BOT projects along National Highway 1 were affected, and the Ministry proactively assessed and identified them right from the implementation of phase 2 of the Eastern North-South Expressway.

Through monitoring, when the two highway projects QL45-Nghi Son and Phan Thiet - Dau Giay - Vinh Hao were inaugurated, a BOT project in Dong Nai saw a 86% decrease in revenue, and a project in Phan Thiet saw a 77% decrease.

"This is understandable because when there is a new highway, it is fast, convenient, not congested and does not cost a fee, of course people will have to rush out. This is an issue that the Ministry has identified, is submitting to the Government and will soon submit to the National Assembly to issue policies on toll collection on state-invested highways, to ensure harmonious traffic flow between routes and efficiency for BOT projects," said Mr. Thang.

The Minister of Transport said that it is expected that 14 BOT projects will be affected and diverted in the coming time. Therefore, the Ministry is continuing to closely monitor and assess the level of decline in revenue and signed BOT contracts, so that the Ministry can propose amendments .

Source