Ministry proposes toll hike on low-traffic BOT roads

Created 08 June 2019
  • PDF
Editor Choice
(0 votes, average 0 out of 5)

The Transport Ministry has proposed a toll hike for 37 build-operate-transfer projects that are receiving lower traffic than contract estimates.

Ministry proposes toll hike on low-traffic BOT roads

The proposal for a 12-18 percent increase in toll fees is being made because 25 of the 37 BOT projects are experiencing lower traffic than what was estimated in their contracts.

Some examples of these projects are the Deo Ca Tunnel, which links the two central provinces of Phu Yen and Khanh Hoa; and the Hanoi-Bac Giang Expressway which connects the capital city with the northern province.

If tolls are not raised, investors might have to declare bankruptcy and trillions of dong (millions of dollars) borrowed from banks will become bad debt, the ministry says.

The ministry plans to gradually increase the tolls in the 37 projects from now until 2021 to avoid sudden steep hikes that can inconvenience the public, with this year’s focus on projects with major losses.

If the tolls are not raised by 2021, the government will have to allocate VND3 trillion ($129.15 million) to cover the losses for nine major projects, the ministry estimates.

Vietnamese regulations allow a toll hike every three years, and the transport ministry has not raised tolls since May 2016.

The country has 59 BOT projects in operation and two under construction.

Some of them have drawn protests by local citizens who argue that the BOT toll booths are located so that anyone using the highway but not the bypass would also have to pay toll fees, meaning they have to pay just to travel around in their neighborhood.


Source: VNE

Maybe You Also Interesting :

» $32 million solar plant powers up in Ninh Thuận

A solar power plant costing VNĐ747 billion (US$32 million) opened in the south central province of Ninh Thuận last week. 

» Vietnamese holiday-goers show a preference for Southeast Asian cities

Growing affluence has spurred Vietnamese holiday-goers to spend more on foreign jaunts, and Southeast Asia is heavily favored for this summer.  

» Vietnam stock market slides to two-week low

Vietnam’s benchmark VN-Index closed below the 950-point benchmark Monday afternoon, the lowest since it bottomed at 946.47 points exactly two weeks ago.