Wednesday,  Apr 24, 2019,23:12 (GMT+7) 0 0
Extension of toll collection right for HCMC-Trung Luong expy proposed
By Le Anh
Wednesday,  Jul 11, 2018,18:59 (GMT+7)

Extension of toll collection right for HCMC-Trung Luong expy proposed

By Le Anh

The HCMC-Trung Luong Expressway is the first expressway project to be built - PHOTO: LE ANH

HCMC - Cuu Long Corporation for Investment, Development and Project Management of Infrastructure (CIPM) has written to the Ministry of Transport proposing to continue collecting toll fees on the HCMC-Trung Luong Expressway for one year and a half after the commercial right over the expressway expires late this year.

CIPM petitioned that the toll collection will continue between January 2019 and June 2020, after the road commercial contract with Yen Khanh Trade Production and Service Company expires on December 31, 2018. Yen Khanh had purchased the right to collect toll fees for five years, starting from January 1, 2014, with a transfer price of some VND2 trillion.

CIPM in its petition said that the continued toll collection is meant to make the most of the public infrastructure asset to create fund for building another expressway section known as Trung Luong-My Thuan Expressway being developed under the build-operate-transfer format.

Earlier, the Government had approved continued toll collection for funds to finance the new expressway section, on the condition that the new expressway be completed by the time the aforesaid commercial right contract expires.

Specifically, according to CIPM, the Government issued Document No.2035 on October 14, 2014, to approve a project to build the Trung Luong-My Thuan Expressway under the build-operate-transfer format. The State would partially fund the project by using fund from maintaining the toll collection on the HCMC-Trung Luong Expressway after the commercial right contract expires and construction on the new expressway is completed.

However, CIPM said that the first stage of the Trung Luong-My Thuan Expressway project would not be completed before the second quarter of 2020 due to changes to its design, and the period between January 2019 -- when the aforesaid commercial contract expires -- and June 2020 would be a vacuum period when toll collection on HCMC-Trung Luong Expressway is suspended.

The 40-kilometer-long HCMC-Trung Luong Expressway became operational eight years ago, with a total investment of VND9,880 billion.

Earlier, BIDV Expressway Development Company had acquired the right to collect the toll fee for this expressway for 25 years, with a transfer price of VND9.1 trillion, but financial constraints forced it to return the project. The transport ministry then assigned CIPM to manage the toll collection, starting from February 25, 2012, prior to the purchase of the toll collection rights in early 2014 by Yen Khanh Trade Production and Service Company.

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