Lam Dong proposes to apply revenue reduction mechanism for Tan Phu - Bao Loc expressway
Lam Dong believes that the Tan Phu - Bao Loc Expressway Project does not apply the mechanism of sharing the reduced revenue, so the feasibility of the Project is not high and reduces its attractiveness to investors and credit institutions.
Lam Dong Provincial People's Committee has just reported to the Prime Minister about some difficulties and problems in implementing the Tan Phu - Bao Loc Expressway Project.
Accordingly, Lam Dong Provincial People's Committee said that according to the approved investment policy, the State capital participating in the Tan Phu - Bao Loc Expressway Project is not high (6,500 billion VND, accounting for 37.79% of the total preliminary investment).
In addition, the Tan Phu - Bao Loc Expressway Project does not apply the mechanism of sharing the reduced revenue, so the feasibility of the Project is not high and reduces its attractiveness to investors and credit institutions for loans.
Regarding the compensation and resettlement support policy framework of the Project as approved by the Prime Minister in Official Dispatch No. 1222/TTg-CN dated November 25, 2023, the cost of compensation, site clearance support and resettlement support increased by VND 1,699 billion compared to the investment policy (from VND 1,122 billion to VND 2,821 billion), but due to a reduction in construction costs and other costs of about VND 779 billion, the total investment of the Project at the Feasibility Study Report step increased to VND 18,120 billion.
The increase in the total investment level mentioned above has reduced the proportion of state capital participating in the Project (from 37.79% to 36%) and increased the payback period of the Project to 28 years and 7 months, which is quite long compared to other expressway projects (less than 20 years), such as: Dien Chau - Bai Vot (state budget capital accounts for 54%), Cam Lam - Vinh Hao (state budget capital accounts for 64%), Dong Dang - Tra Linh (state budget capital accounts for 68%)...
Regarding this issue, Lam Dong Provincial People's Committee has reported and proposed to the Prime Minister to consider supplementing the Central budget of about 2,410 billion VND for the Project (equivalent to the State budget participating in the Project of 8/910 billion VND, accounting for 49.56% of the total investment); at the same time, allowing the Project to apply the mechanism of sharing the reduced revenue. Currently, the Ministry of Planning and Investment is consulting with the Central Ministries and branches to synthesize the report and propose to the Prime Minister.
The Tan Phu - Bao Loc Expressway project was approved by the Prime Minister in Decision No. 1386/QD-TTg dated November 10, 2022. Accordingly, this route is 66km long (of which the section passing through Lam Dong province is 55km long).
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