Twenty six BOT projects see revenue reduction

SGGP
The Ministry of Transport and the Directorate for Roads of Vietnam reported that many BOT (Build-Operate-Transfer) projects faced revenue reduction, threatening investors’ financial plans.

In the total of 57 BOT projects under the ministry’s management, 27 saw revenue increase compared to the financial plan in contracts in 2018 and 26 projects could not reach the financial plans. Only four projects have just been put into operation so it is unable to estimate revenue.

The revenue reduction was attributed to the lower than expected number of vehicles in traffic and toll cut. Among revenue fall ones, the project of expanding National Highway 1A from Hanoi to Bac Giang province dropped 87 percent to VND460 billion (US$19.78 million), Phu Gia-Phuoc Tuong tunnel reduced 90 percent to VND260 billion, Ca Mountain Pass tunnel slid 95 percent to VND450 billion.

Some projects saw an increase in vehicles in traffic but revenue still dropped because the number of monthly and quarterly tickets highly increased. Aside from that, some projects have been forced to reduce toll level comprising Hanoi-Hai Phong Highway, National Highway 1A in Quang Nam province and Nam Cau Gie project.

According to the Ministry of Transport, commercial banks reported that 32 percent of BOT projects have seen toll collection and revenue not as expected. Their outstanding loans at these banks total VND43 trillion ($1.85 billion). This might lead to banks’ debt restructuring or deep debts.

By Bich Quyen – Translated by Hai Anh

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