BOT toll collection at Ben Thuy bridge: What is the solution?

(Baonghean.vn) - Balancing the interests of investors and localities is a problem with BOT contracts. Regarding the collection of BOT fees at Ben Thuy Bridge, there are opinions that the operation of the toll stations does not ensure the interests of the people.

Legal basis for theyesm thuBOT feeICyesu Bto Thuy 1 and2

With the goal of reducing traffic congestion and accidents in Vinh City, expanding the development corridor in the western part of the City, the Ministry of Transport allows CIENCO4 to invest in the Vinh City bypass project under the BOT form, contract No. 2177/GTVT-KHDT dated May 15, 2003.

The route is 25.8 km long, from the North of Quan Hanh town (Km 448+800, National Highway 1A) to Ben Thuy bridge (1) (Km 467+056, National Highway 1A), with a total investment of 378 billion VND.

Ben Thuy Bridge Toll Station 1.

In June 2005, the Ministry of Transport issued Decision No. 1872/QD-BGTVT assigning the transfer of Ben Thuy 1 Toll Station located at Km 467+100, National Highway 1A (under the management of Road Management Area 4, Vietnam Road Administration) to the BOT investor of Vinh bypass route for exploitation and toll collection in the form of round-trip toll collection to recover capital for the project.

The location of Ben Thuy 1 toll station is 83.5km from Hoang Mai toll station (Km383+600, National Highway 1A) and 72km from Cau Rac toll station (Km539+100, National Highway 1A), in accordance with the regulations on the minimum distance between two toll stations on the same route according to Circular 159 of the Ministry of Finance in 2003. The toll rate is regulated according to Decision No. 46, dated July 14, 2005 of the Ministry of Finance. In December 2005, the project was completed and put into operation.

In 2010, Ben Thuy 2 Bridge was built with state budget (completed in September 2012). However, this “violated” the BOT Contract between the Ministry of Transport and CIENCO4.

According to this clause, Ben Thuy 2 Bridge is considered as a crossroad connecting to Vinh City bypass, reducing traffic volume and affecting the investor's capital recovery plan. To ensure the signed BOT Contract, in June 2011, CIENCO4 submitted a document to the Ministry of Transport, proposing 3 options:

Option 1,Set up a sub-toll station at the head of Ben Thuy II bridge to ensure that vehicles are not charged duplicate tolls, do not put pressure on traffic on one of the two bridges, and do not change the original state of the project.

Option 2, move Ben Thuy 1 toll station to another location to continue collecting fees to recover capital for the project. The investor has considered 3 possible locations for relocation: on National Highway 1A north of Vinh City bypass or south of Vinh City bypass in Ha Tinh province; on Vinh City bypass.

The report has a specific analysis, if the project is located in the North, it will be in the Southeast Economic Zone, affecting investment attraction and production activities of enterprises. If it is located in Ha Tinh, it can only be located in the South of Hong Linh town because National Highway 1A, Hong Linh - Nghi Xuan section, has 2 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 Cau Rac toll station (~50 km).

The intersection of QL8B (new QL1A) and old QL1A (green circle) was considered in the plans for placing new toll stations. Finally, the plan to keep the Ben Thuy 1 toll station and place an additional toll station at Ben Thuy 2 bridge was approved by the Vietnam Road Administration, agreed by the People's Committee of the locality where the project passes through, the Ministry of Finance and the Ministry of Transport. Map: Google Map. Graphics: Huu Quan.

The plan to place a toll station on the Vinh City bypass will make it difficult to control the situation of vehicles escaping the station and entering the inner city, defeating the project's purpose of reducing traffic pressure for Vinh City.

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

The investor's proposal was appraised by the Vietnam Road Administration and a report was issued agreeing with Option 1. The People's Committee of Nghe An province and the Ministry of Finance later also issued a document agreeing with Option 1, which is to place an additional 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 it.

Ben Thuy Bridge 2.

Adjusting the fee level is the optimal solution

Regarding the 2 BOT toll stations at Ben Thuy Bridge 1 and 2, there are opinions that the toll rates should be relocated and/or adjusted. However, the current location of the 2 toll stations has a legal basis, but relocating is not highly feasible for 2 reasons:

The first, July 29, 2015, in response to people's complaints about the "dense" 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 complete the project of planning BOT toll stations on national highways. While this project has not been approved, the Ministry of Transport and the provinces must temporarily stop arranging new toll stations that do not ensure a minimum distance of 70 km between two stations on the same route.

Monday, the construction cost and land clearance cost if 2 toll stations are relocated is estimated at 100 billion VND. In the current limited budget conditions, the policy of mobilizing social capital to invest in infrastructure is a difficult problem for local and central budgets.

Meanwhile, the shortcomings reflected in 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, there are opinions that the newly adjusted fare (implemented from January 2016) is too high, some people living on both sides of the bridge who do not participate in traffic on Highway 1A and the Vinh City bypass still have to pay the fee.

From January 2016, Ben Thuy Bridge 1 and 2 toll stations will apply new fares.

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

In the reply document, the Ministry of Transport and the People's Committees of the two provinces agreed on the contents of the draft to repay the capital for the BOT project to avoid Vinh City and the project to upgrade National Highway 1A, section Nam Ben Thuy - avoiding Ha Tinh City. In Document 970 dated March 14, 2014 of the People's Committee of Ha Tinh province, it was stated: "Ha Tinh province basically agrees with the layout and contents of the draft of the Ministry of Finance".

On that basis, on April 24, 2014, the Ministry of Finance issued Circular 51 allowing CIENCO4 to adjust the toll collection level at the BOT stations of Ben Thuy Bridge 1 and 2.

But it was only when the fee increase was implemented in early 2016 that localities made recommendations that the new fee was too high. On December 21, 2015, Nghe An Provincial People's Committee issued Document No. 9328 and on January 6, 2016, Ha Tinh Provincial People's Committee issued Document No. 35 to agencies and departments requesting consideration of reducing ticket prices for vehicles and people in the area who regularly pass through the two toll stations of Ben Thuy Bridge 1 and 2.

Faced with this situation, CIENCO 4 has issued a Resolution on supporting monthly and quarterly tickets for all subjects with vehicles in Vinh City, Hung Nguyen District of Nghe An Province; Nghi Xuan District, Hong Linh Town of Ha Tinh Province (effective from January 1, 2016).

CIENCO4's price support plan applies from January 2016.

According to a survey based on household registration books and work units, CIENCO4 reported that there were nearly 1,200 cases that applied subsidized fares. As of August 31, 2016, this unit had spent a total of VND2.82 billion on subsidies.

Most recently, based on the proposal of the Ministry of Transport, the Ministry of Finance has submitted document No. 8302/BTC - CST on options to reduce BOT fees. Specifically, it is recommended to consider reducing 10% - 20% of fees for vehicles with less than 12 seats and vehicles with up to 30 seats (group 1, group 2 vehicles) at 5 stations applying the highest fee rates, including 2 toll stations at Ben Thuy Bridge 1 and 2. The leader of CIENCO 4 said that the unit is coordinating with relevant agencies to study a roadmap to reduce ticket prices for people as soon as possible.

Thus, the inadequacy in the toll rates at the two BOT stations of Ben Thuy Bridge 1 and 2 is real. Through the reflection of the people, the recommendations of the locality and the involvement of the departments, the investor will certainly have to make adjustments.

However, it is important to realize that the benefits of BOT projects are not only measured by direct use. These projects have contributed to changing the face of local infrastructure, creating momentum for the general socio-economic development and bringing benefits to the entire population.

In the context of limited state budget, attracting and utilizing BOT capital to build and upgrade infrastructure is an effective solution being applied throughout the country. With the revenue from an initial BOT project, investors can continue to implement other projects serving the people. In the case of the Vinh City bypass BOT project, we can mention "satellite" projects such as the QL46 overpass intersecting with the North-South railway, the QL1A overpass sub-project with QL8B, upgrading QL1A section from South Ben Thuy - avoiding Ha Tinh City...

PV Group

Photo: Thanh Cuong