Tag: BOT

Pilot programs pave the way for nationwide expansion of electronic toll collection (ETC) systems, eliminating physical barriers and streamlining traffic flow.

Deputy Prime Minister Tran Hong Ha's directive signals a rigorous review process for BOT projects, urging comprehensive evaluations to address persisting challenges in transport infrastructure investments.

State-owned road infrastructure assets can now be monetized via transfer of toll collection rights to private entities in a bid to generate revenue.

Project linking border gates in Lang Son province to be built in the BOT mode.

Some projects in operation but yet to collect tolls.

Of the more than 70 build-operate-transfer (BOT) road toll booths managed by the Ministry of Transport, 18 have problems with collection processes. The ministry has coordinated with localities to help 14 toll booths operate as they should, while the remaining four are yet to address their problems. It has proposed that the government allocate more than VND6 trillion ($255.4 million) to compensate investors and terminate the contracts for three of the four problem toll booths ahead of time.

A number of highway projects with significant investment are not catering to the expected level of traffic, with build-operate-transfer (BOT) toll booths being in the wrong location and Covid-19 among the reasons investors are concerned about returns.

With a series of build-operate-transfer (BOT) projects ceasing toll collections and key projects suspending construction, the Vietnam Association of Road Traffic Construction Investors (VARSI), through the Vietnam Chamber of Commerce and Industry, has proposed solutions the government could adopt to save BOT businesses, including tax reductions and 0 per cent interest rates on construction loans.

The amount of credit available for transport infrastructure is becoming increasingly limited. Now is the right time to issue corporate bonds and carry out public-private partnership (PPP) traffic projects, Mr. Tran Van The, Vice Chairman of the Deoca Group, said at VnEconomy’s online “Development of the corporate bond market: Balancing the advantages of issuers and investors” conference. Many regulations still place restrictions on businesses, however, and a channel to attract capital via bonds is yet to be approved.

In the first session of the 15th National Assembly, State Audit of Vietnam (SAV) pointed out several flaws in the investment and operations of build-operate-transfer (BOT) and build-transfer (BT) projects. Conditions for the disbursement and payment of State’s capital contributions to projects and investor loans in BOT contracts have not been specified, while BT projects have delayed. SAV recommended financial settlements of VND1.13 trillion ($49.15 million) for BOT projects and VND1.8 trillion ($78.3 million) for BT projects.