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Friday,  Dec 15,2017,19:03 (GMT+7)

Five expressway projects’ financial restructuring schemes postponed

Le Anh
Thursday,  Sep 28,2017,18:29 (GMT+7)
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Five expressway projects’ financial restructuring schemes postponed

Le Anh

HCMC – The Government has agreed to put off the issuance of regulations on the financial restructuring schemes for five expressway projects implemented by Vietnam Expressway Corporation (VEC) until the National Assembly Standing Committee has its final say on the project budgets.

The five projects are Cau Gie - Ninh Binh, Noi Bai - Lao Cai, HCMC - Long Thanh - Dau Giay, Ben Luc - Long Thanh and Danang - Quang Ngai. Certain proportions of the capital for such projects under the tentative schemes will be transformed from loans to Government stakes.

Three of these projects have been put into service while the remaining two projects, Ben Luc - Long Thanh and Danang - Quang Ngai, are under construction.

The first 65-kilometer section of Danang - Quang Ngai Expressway was opened to traffic last month and the rest is expected for completion by the end of this year, while Ben Luc - Long Thanh Expressway will be completed by 2019.

Previously, the Government issued Decision 2072/QD-TTg guiding the financial restructuring for the five expressway projects. Accordingly, the entire official development assistance (ODA) loans for these projects would be turned into State stakes. The reciprocal capital for these projects would be restructured and compensated by State funds.

The capital advanced for Cau Gie - Ninh Binh and Noi Bai - Lao Cai projects, and the bonds issued to mobilize capital to develop Cau Gie – Ninh Binh and Noi Bai – Lao Cai Expressways and generating profits would be changed into State budget funding the projects directly.

As for Noi Bai – Lao Cai and Danang – Quang Ngai projects, if toll fee collections from vehicle owners and other sources were not enough to pay loans, the Ministry of Transport would have to specify reasons and coordinate with relevant agencies to ask the Government for support.

The Prime Minister assigned the Ministry of Transport to direct VEC to find financial solutions to help investors recover capital and take responsibility for the projects’ feasibility.

In addition, the ministry would manage the State budget for the five highway projects and supervise fee collections and VEC’s spending.

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