Vinh City temporarily suspends all BT projects

Vinh City leaders said that the city has just decided to temporarily suspend BT projects according to the instructions of the Provincial People's Committee to wait for documents guiding the implementation of Decree No. 63/2018/ND-CP of the Government on investment in the form of public partnership.

Vinh wholesale market was built using a BT project. Photo: TC

In the city, many projects implemented under the BT form have been completed and put into use such as the extended Le Mao Road, the agricultural wholesale market, Cua Tien Bridge and recently Hung Phuc Primary School.

In these BT projects, the investors invested capital first, the city created conditions for them to receive other projects to continue to recover capital. For example, in the Le Mao extended road, investors will be able to exploit the land on both sides of the road; in the Ly Thuong Kiet extended road, investors will exploit the Le Loi residential area, Hung Binh residential area to recover capital; or in the Nguyen Viet Xuan road project, investors will exploit the agricultural land behind the oil press factory to do the project...

Ly Thuong Kiet Street extension will be invested in the form of BT. Photo: Quang An

According to the plan, the city will continue to implement a number of other BT projects such as Ly Thuong Kiet extended road, Nghi Kim commune planned road, Le Mao extended road phase 3; Upgrading and expanding Nguyen Viet Xuan road; building planned roads in Nghi Phu commune and Hung Loc commune; 24m planned road connecting Nguyen Xuan Linh road to 72m road and the western ring road; Tran Hung Dao extended road and 35m wide planned road from Truong Thinh Land urban area project to National Highway 1A...

However, these projects are all on hold.

Build-Transfer Contract (hereinafter referred to as BT contract)is a form of investment signed between a competent state agency and an investor to construct an infrastructure project; after construction is completed, the investor transfers the project to the government and the government creates conditions for the investor to implement other projects to recover investment capital and profits, or pay the investor according to the agreement in the BT contract.