Why after 20 negotiations, BOT QL51 cannot terminate the contract?

According to the Ministry of Transport, the BOT project to expand National Highway 51, section Km0+900 - Km73+600 in Dong Nai and Ba Ria - Vung Tau provinces under the BOT contract form has temporarily stopped collecting tolls since January 13.

After many contract negotiations (19 times), the investor and project enterprise (BVEC) have handed over the project items to Road Management Area 4 for acceptance. However, the investor has not yet agreed with the competent authority on terminating the contract ahead of schedule to implement the next steps in accordance with the provisions of the Law on Investment under the public-private partnership method and the BOT contract.

This leads to untimely maintenance of the project, causing damage, potholes, and traffic safety risks.

Most recently, on September 13, the Vietnam Road Administration (Ministry of Transport) sent an invitation to the project enterprise to continue the 20th negotiation on the agreement of the two parties to terminate the contract before the deadline so that the road management agency has enough basis to arrange funds to maintain the project according to the provisions of the Law on Management and Use of Public Assets.

However, the project enterprise proposed to postpone, so that investors could discuss and reach an internal consensus before negotiating.

In case the two parties do not terminate the contract through negotiation and agreement, the Vietnam Road Administration, as the agency signing the project contract (authorized by the Ministry of Transport), will base on Clause 2, Article 52 of the Law on Investment under the Public-Private Partnership method to carry out the procedure to terminate the BOT contract before the deadline.

During the period of not terminating the contract before the deadline, the project enterprise is still responsible for continuing to maintain the project and is responsible before the law, the BOT contract Minutes No. 01/2023/BBBQ-HD.BOT dated April 19 signed if an accident occurs due to the cause arising from the implementation of the BOT contract not meeting the requirements.

Currently, the Vietnam Road Administration, with its authority as the road management agency, has directed Road Management Area 4 to strengthen inspection organization, proactively coordinate with units with maintenance functions to perform maintenance, repair, and clear drainage systems and carry out traffic assurance work on the route.

The BOT project of National Highway 51, Bien Hoa - Vung Tau section, 72.7 km long, with a total approved investment of VND 3,970 billion; to date, the settlement of VND 3,486 billion has been agreed upon, the remaining value is being considered by the Ministry of Transport for settlement agreement according to regulations.

The project was put into operation in April 2013. According to the project contract, the expected toll collection period is about 20 years, 6 months and 11 days (from July 1, 2009 to January 12, 2030, including 4 years of toll collection to generate profit).

However, the toll collection time was shortened compared to the signed project contract because the Vietnam Road Administration updated actual revenue, settlement value and recalculated some financial indicators.

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