Toll collection at Ben Thuy Bridge: What are the solutions?

(Baonghean.vn) - Balancing the interests of investors and localities is a challenge in BOT contracts. Regarding the BOT toll collection at Ben Thuy Bridge, some opinions suggest that the operation of the toll stations does not ensure the interests of the people.

Legal basis for establishing thesir/ma'amautumnBOT toll feesICau BBen Thuy 1 and2

With the aim of reducing traffic congestion and accidents in Vinh City, and expanding the development corridor in the western part of the city, the Ministry of Transport allowed CIENCO4 to invest in the Vinh City bypass project under the BOT (Build-Operate-Transfer) model, contract number 2177/GTVT-KHĐT dated May 15, 2003.

The road has a length of 25.8 km, from the North of Quan Hanh town (Km 448+800, QL1A) to Ben Thuy bridge (1) (Km 467+056, QL1A), with a total investment of 378 billion VND.

Ben Thuy 1 Bridge toll station.

In June 2005, the Ministry of Transport issued Decision No. 1872/QD-BGTVT designating the transfer of Ben Thuy 1 Toll Station located at Km 467+100, National Highway 1A (formerly under the Road Management Area 4, Vietnam Road Administration) to the BOT investor of the Vinh bypass route for operation and toll collection on a per-trip basis to recover the project's investment.

The Ben Thuy 1 toll station is located 83.5km from the Hoang Mai toll station (Km383+600, National Highway 1A) and 72km from the Cau Rac toll station (Km 539+100, National Highway 1A), in accordance with the regulations on the minimum distance between two toll stations on the same road as stipulated in Circular 159 of the Ministry of Finance in 2003. The toll rates are regulated by Decision No. 46, dated July 14, 2005, of the Ministry of Finance. The project was completed and put into operation in December 2005.

In 2010, Ben Thuy 2 Bridge was constructed using state budget funds (completed in September 2012). However, this "violated" the BOT contract between the Ministry of Transport and CIENCO4.

According to this clause, the Ben Thuy 2 bridge is considered a connecting road to the Vinh City bypass, reducing traffic volume and impacting the investor's payback plan. To ensure the signed BOT contract, in June 2011, CIENCO4 submitted a proposal to the Ministry of Transport, suggesting three options:

Option 1,The purpose is to place an additional toll station at the beginning of Ben Thuy II Bridge to ensure that vehicles are not charged double tolls, to avoid putting pressure on traffic flow on either bridge, and to maintain the original state of the project.

Option 2The investor has considered relocating the Ben Thuy 1 toll station to another location to continue collecting tolls to recoup the project's investment. Three possible relocation sites are planned: on National Highway 1A north of the Vinh City bypass or south of the Vinh City bypass in Ha Tinh province; and on the Vinh City bypass itself.

The proposal includes a detailed analysis: if the project is located north of the city, it would be within the Southeast Economic Zone, affecting investment attraction and the production activities of businesses. If it is located in Ha Tinh province, it can only be in the south of Hong Linh town because the Hong Linh - Nghi Xuan section of National Highway 1A has two parallel branches, the old National Highway 1A and the new National Highway 1A (also known as National Highway 8B), and this location is too close to the Cau Rac toll station (~50 km).

The intersection of National Highway 8B (new National Highway 1A) and the old National Highway 1A (blue circle) was considered in various options for a new toll station. Ultimately, the option of retaining the existing Ben Thuy 1 bridge toll station and adding a supplementary toll station at Ben Thuy 2 bridge was approved by the Vietnam Road Administration, agreed upon by the local People's Committee where the project passes through, the Ministry of Finance, and the Ministry of Transport. Map: Google Map. Graphics: Huu Quan.

Placing toll stations on the Vinh City bypass would make it difficult to control vehicles avoiding the toll stations and entering the city center, thus undermining the project's purpose of reducing traffic congestion in Vinh City.

Option 3The investor hands over the project to the state and stops collecting toll fees for capital recovery. The state will reimburse the investor an amount calculated based on the terms of the contract, actual conditions, and current regulations.

The investor's proposal was reviewed by the Vietnam Road Administration and a report was submitted agreeing with Option 1. The People's Committee of Nghe An province and the Ministry of Finance subsequently issued documents agreeing with this. On December 30, 2011, the Ministry of Transport officially issued a document agreeing with Option 1, which involves placing an auxiliary toll station for the Vinh City bypass project north of Ben Thuy 2 bridge. The Ministry assigned the Vietnam Road Administration and CIENCO 4 to recalculate the contract term and coordinate with relevant parties to promptly implement the project.

Ben Thuy 2 Bridge.

Adjusting the fees is the optimal solution.

Regarding the two BOT toll stations at Ben Thuy Bridge 1 and 2, some have suggested relocating them and/or adjusting the toll rates. However, the current location of the two toll stations has legal basis, while relocation is not highly feasible for two reasons:

The firstOn July 29, 2015, following public complaints about the high density of toll stations, the Prime Minister issued urgent dispatch No. 1237/TTg-KTN (signed by Deputy Prime Minister Hoang Trung Hai) requesting the Ministry of Transport to urgently finalize the plan for BOT toll stations on national highways. Until this plan is approved, the Ministry of Transport and the provinces must temporarily suspend the placement of new toll stations that do not meet the minimum distance of 70 km between two stations on the same route.

MondayThe estimated cost of construction and land clearance if the two toll stations are relocated is 100 billion VND. Given the limited budget and the current policy of leveraging socialized capital for infrastructure investment, this presents a significant challenge for both local and central government budgets.

Meanwhile, the shortcomings reflected regarding the toll stations at Ben Thuy Bridge 1 and 2 can be resolved with a more "economical" solution, which is to adjust the toll rates.

Specifically, some argue that the newly adjusted toll fees (effective from January 2016) are too high, and that some residents living on either side of the bridge who do not use National Highway 1A or the Vinh City bypass still have to pay the fee.

From January 2016, the toll stations at Ben Thuy Bridge 1 and 2 implemented new toll rates.

In fact, the adjustment of toll rates at the two BOT toll stations, Ben Thuy Bridge 1 and 2, has been planned since 2014. On March 7, 2014, the Ministry of Finance issued Document 2895 seeking opinions from the Ministry of Transport, the People's Committees of Nghe An and Ha Tinh provinces on the draft Circular on road usage fees at the Ben Thuy Bridge toll station and the Ben Thuy Bridge 2 toll station on National Highway 1A.

In their response, the Ministry of Transport and the People's Committees of the two provinces agreed on the contents of the draft to recoup investment for the BOT project of the Vinh City bypass and the project to upgrade National Highway 1A section from Nam Ben Thuy to the Ha Tinh City bypass. Document 970 dated March 14, 2014, from the People's Committee of Ha Tinh province clearly stated: "Ha Tinh province basically agrees with the structure and contents of the draft from the Ministry of Finance."

Based on that, on April 24, 2014, the Ministry of Finance issued Circular 51 allowing CIENCO4 to adjust the toll rates at the Ben Thuy 1 and 2 BOT toll stations.

However, it was only when the fee increase was implemented in early 2016 that local authorities raised concerns that the new fees were too high. On December 21, 2015, the People's Committee of Nghe An province issued document No. 9328, and on January 6, 2016, the People's Committee of Ha Tinh province issued document No. 35, sending requests to relevant agencies and departments to consider reducing toll fees for vehicles and residents in the area who frequently pass through the Ben Thuy 1 and 2 bridge toll stations.

In response to this situation, CIENCO 4 has issued a Resolution on providing monthly and quarterly passes to all vehicle owners in Vinh City and Hung Nguyen District of Nghe An Province; and Nghi Xuan District and Hong Linh Town of Ha Tinh Province (effective from January 1, 2016).

CIENCO4's price support plan has been in effect since January 2016.

According to a survey based on household registration records and workplace information, CIENCO4 reported that nearly 1,200 cases were eligible for subsidized fares. As of August 31, 2016, the unit had spent a total of 2.82 billion VND on subsidies.

Most recently, based on a proposal from the Ministry of Transport, the Ministry of Finance submitted document No. 8302/BTC-CST regarding options for reducing BOT fees. Specifically, it proposed considering a 10% - 20% reduction in fees for vehicles with fewer than 12 seats and vehicles with up to 30 seats (group 1 and group 2 vehicles) at 5 toll stations with the highest fees, including the Ben Thuy 1 and 2 bridge toll stations. CIENCO 4 leaders stated that the unit is coordinating with relevant agencies to study a roadmap for reducing tolls for the public as soon as possible.

Therefore, the inadequacies in the toll rates at the two BOT toll stations on Ben Thuy Bridge 1 and 2 are real. Based on feedback from the public, recommendations from the local authorities, and the involvement of relevant departments, the investor will certainly have to take steps to adjust them.

However, it is important to recognize that the benefits of BOT projects are not measured solely by direct usage. These projects have contributed to transforming the local infrastructure, boosting the overall socio-economic development, and benefiting the entire population.

Given the limited state budget, attracting and leveraging BOT (Build-Operate-Transfer) capital for infrastructure construction and upgrading is an effective solution being applied nationwide. With the revenue from an initial BOT project, investors can continue to implement other projects serving the public. In the case of the Vinh City bypass BOT project, examples include "satellite" projects such as the overpass on National Highway 46 intersecting with the North-South railway, the sub-project of an overpass on National Highway 1A intersecting with National Highway 8B, and the upgrading of National Highway 1A from Nam Ben Thuy to the Ha Tinh City bypass…

Reporters' Team

Photo: Thanh Cuong