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Ministry proposes three scenarios for Cai Lay tollgate spat
The Saigon Times Daily
Wednesday,  Dec 6, 2017,23:51 (GMT+7)

Ministry proposes three scenarios for Cai Lay tollgate spat

The Saigon Times Daily

The booths at Cai Lay tollgate are seen empty on December 5, a day after Prime Minister Nguyen Xuan Phuc orders a one-month suspension of the toll station in Tien Giang Province over furious driver protests - PHOTO: VNA

HCMC - Deputy Minister of Transport Nguyen Ngoc Dong on December 5  floated three scenarios for the controversial Cai Lay tollgate on National Highway 1 in Tien Giang Province.

First, the tollgate would stay where it is and road users would have to pay fees when they pass the tollgate. However, the investor will improve services, such as opening more lanes.

Second, the tollgate would be relocated from National Highway 1 to the 12-kilometer road which bypasses Cai Lay Town. If this is the case, the Government would have to renegotiate with the investor to lengthen the toll collection duration. But according to Dong, the relocation option could not materialize as it would affect the investor’s financial plan and its commitment to loan repayment, which he said might increase bad debt in the banking system if it is prolonged.

Third, there should be two toll stations, with one on National Highway 1 to recover the money used for re-asphalting a 26.5-kilometer section of the highway, and one on the 12-kilometer bypass to recover the cost of the newly built bypass.

Speaking to Nguoi Lao Dong newspaper, Dong said there were several solutions proposed during an emergency meeting chaired by the Prime Minister on Monday.

However, no final decision was made at the meeting. The PM told the Ministry of Transport and relevant agencies to review the project and come up with new solutions for the Cai Lay tollgate.

Dong said build-operate-transfer (BOT) is an effective way to raise capital from the private sector to fund infrastructure development projects. However, the implementation of BOT infrastructure projects has shown some shortcomings due to the incomplete legal framework for this form of financing.

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