Last May, exactly 3 years after Deo Ca Group took the responsibility of rescuing Bac Giang - Lang Son expressway project which was at a deadlock. Under the involvement of Deo Ca Group, the expressway has been put into operation from the beginning of 2020, effectively reducing traffic burden for the overloaded National Road 1A.
Affirming “real value”
Three years ago, the Government attempted to choose the most optimal and most capable investor to implement Bac Giang - Lang Son route, striving that by 2019, this route will be put to serve people.
And, Deo Ca Group Joint Stock Company was assigned to “rescue” Bac Giang - Lang Son Expressway Project. After Deo Ca Group started to implement the project, overcoming many difficulties and challenges, the project regained progress and prestige. In early 2020, nearly 64km of the project finally immersed into North - South artery traffic route in the surprise and admiring of not only the people but also many State agencies and departments.
From 00:00 January 15, 2020, Bac Giang - Lang Son BOT Company (under Deo Ca Group) officially came into operation and exploited Bac Giang - Lang Son expressway. In one month of Lunar New Year, vehicles running on this expressway are completely free. The operation of this expressway during Tet holiday has contributed to reducing traffic accidents and timely serving the travel needs of the people.
Mr. Ho Minh Hoang, Chairman of Deo Ca Group, shared that the free service of Bac Giang - Lang Son expressway during Lunar New Year will affect the revenue estimated at VND 45 billion while the project is suffering from negative cash flow at the beginning of operation.
Investors will have to solve the difficult problem of the financial plan due to the removal of 01 toll station, fee reduction and exemption for nearly 5,000 vehicles that have not been previously anticipated.
HANDLING BROKEN DRAINAGE DITCH COVERS Along National Road 1 in Lang Giang district (Bac Giang province), many drainage ditch covers have broken. The reason is that there are many large trucks in these sections, not excepting that overloaded vehicles often travel back and forth in industrial clusters and transport companies, transporting goods, supplying building materials, etc. From March 2020, Bac Giang - Lang Son BOT Joint Stock Company has directed the management and operation unit to take measures to maintain and repair the damaged drainage ditch covers, some have been completed. Bac Giang - Lang Son BOT Joint Stock Company regularly checks the assigned National Road 1 to promptly detects and handles problems arising and adds drainage ditches at some places where water is often deposited; ensure traffic safety; coordinate with authorities and functioning forces to limit overloaded vehicles run on the route. |
Besides, due to Chi Lang - Huu Nghi route is incompleted, Bac Giang - Lang Son expressway still stops at 30km from Lang Son and 43km from Huu Nghi border gate.
Previously, on January 10, 2020, Lang Son People's Committee held a comprehensive review of the preparation and approved to put Bac Giang - Lang Son expressway into operation as proposed by the investor.
Through operating time free of charge, investors have had enough time to evaluate the entire toll collection system, traffic safety system, review, collate data and assess traffic as well as other impacts to unify with Lang Son province about solutions to overcome the limitations of the financial plan, including the revenue impact.
Many difficulties still ahead
The journey of building Bac Giang - Lang Son expressway inherently faced many obstacles, went into operation right at the time of COVID-19 pandemic, but the whole system still operated to ensure the transporting of vehicles. However, Mr. Ho Tien Thieu, Vice Chairman of Lang Son People's Committee, said that during the operation of the Component 1 project, there was a huge drop in revenue and traffic volume compared to the initial forecast. Actual traffic on both routes in the past period was only about 11,779 vehicles/day (reduce about 10,811 vehicles/day, corresponding to a 48% reduction for both National Road 1 and the expressway compared to the initial forecast at the approved financial plan).
In addition, the removal of 01 toll station (at Km24 + 800) on National Road 1 to harmonize with the socio-economic development situation, people's income and the actual local conditions has led to a reduction in revenue during the tolling period, affecting the traffic ratio between National Road 1 and expressway, reducing traffic on the expressway.
Financial plan of Component 1 project has been deeply ruined compared to the original commitment, due to the objective change from policy mechanism. In order to reduce cash flow pressure for the parties, Lang Son People's Committee proposed to Prime Minister to consider and balance central budget capital to support Component 1 project with the amount of VND 2,056 billion allocated from the medium-term public investment plan for the period of 2021 - 2025 to pay for the items such as ground clearance for frontage roads, underground tunnels, direct overpasses bridges, etc.
According to Lang Son People's Committee, this support budget is similar to the policy that Government has been applying in some PPP projects partially funded by the state budget such as some projects investing and constructing the sections on eastern North - South expressway, Trung Luong - My Thuan Expressway Project, Van Don - Mong Cai Expressway Project, etc.
Nguyen Quang Thanh
