Handling problems at some BOT traffic projects

TPO - The Government Office has just issued Notice No. 270/TB-VPCP concluding the Government Standing Committee's conclusion on the Project to handle difficulties and problems at a number of BOT traffic projects.

According to the announcement, the Government Standing Committee welcomed and highly appreciated the efforts of the Ministry of Transport (MOT) in developing and preparing a project to handle difficulties and problems in a number of BOT traffic projects.

Difficulties and problems with a number of BOT traffic projects have arisen and lasted for many years. The National Assembly, the Government, and the Prime Minister have directed the Ministry of Transport and other agencies and units to promptly find solutions.

In Directive No. 27 dated May 25, 2023, the Politburo requested a plan to completely resolve the long-standing problems of projects, including investment projects under the form of BOT contracts, which is the political basis for developing the Project.

This is an issue that affects many related subjects and objects; handling difficulties and obstacles will open up investment capital for developing transport infrastructure under the public-private partnership (PPP) method, improving the investment environment.

Illustration photo.

The Government Standing Committee requested the Ministry of Transport to review and ensure proper and full implementation of the opinions of the National Assembly Standing Committee in Notice No. 1834 dated November 28, 2022 of the Secretary General of the National Assembly; coordinate with localities with BOT projects being proposed for handling to review and carefully assess the current situation of difficulties and obstacles of the projects. It is necessary to supplement full information for projects that need to be handled because the locality is the competent authority; review the provisions of the BOT contract to specifically determine the subjective and objective responsibilities of the relevant entities; concretize the benefits and effectiveness of the projects in the past time... on that basis, propose appropriate solutions.

The Ministry of Transport and localities need to change their way of thinking and working. Research and make maximum use of regulations and tools under the authority of the Government, the Prime Minister, ministries and localities, first of all the responsibility and authority of the Ministry of Transport and localities to have specific solutions for each project; only propose to competent authorities to allocate state budget to handle when other solutions are not feasible.

In cases where it is really necessary to submit to the National Assembly for promulgation a Resolution, it is necessary to consider completed projects but toll stations cannot be set up, prioritize proposals on mechanisms and policies to diversify resources, reduce the use of state capital when handling; at the same time, it is necessary to clearly define the application period, quantity, and specific project list; focus on the list of projects that have been specifically identified, quantify difficulties and obstacles; carefully assess the impact of proposed mechanisms and solutions, ensure that precedents are not created, and that policies are not taken advantage of, causing loss, waste, or group interests.

The Government Standing Committee requested the Ministry of Transport to coordinate with the State Bank of Vietnam to work with investors and credit providers on the principle of ensuring harmony of interests between the State, investors, BOT project enterprises and capital providers. They must have the responsibility to share risks, have solutions to restructure loans, reduce interest rates, and adjust appropriate debt repayment plans.

In case of proposing to use the state budget to pay the investor when terminating the contract before the deadline, it is necessary to determine the value under the state's responsibility to pay, which source to use and the decision-making authority; the parties are responsible for sharing the maximum risk according to the principle of "harmonized benefits, shared risks" (the Ministry of Transport and the State Bank of Vietnam work with the investor, the enterprise and the capital providers to negotiate in the direction of no equity profit and no interest included in the proposed payment value).

In the long term, the Ministry of Planning and Investment shall preside over and coordinate with the Ministry of Transport in the process of amending the Law on Investment under the public-private partnership model to study appropriate solutions to handle investment projects under the public-private partnership model that have the potential to encounter difficulties and problems.

The Government Standing Committee assigned Deputy Prime Minister Tran Hong Ha to direct the Ministry of Transport and relevant ministries and agencies to complete the Project to ensure high quality and persuasiveness when submitting it to competent authorities for consideration and decision.

Truong Phong

Source: https://tienphong.vn/xu-ly-vuong-mac-tai-mot-so-du-an-bot-giao-thong-post1648724.tpo