The two biggest road tunnels in Vietnam, namely Hai Van and Deoca, may be soon closed. However, the causes are not simply because the investor owes 2 billion in electricity bill. The key cause is surprisingly from the “congestion” at the Headquarter of the Ministry of Transport (MOT).
Once the Member of the National Assembly expressed his opinion
Deoca Company’s urgent appeal for help had been spread to the National Assembly forum within half a day after Minister of the MOT Nguyen Van The placed the penultimate position in the ranking of the lowest confidence people, behind the Minister Phung Xuan Nha of the Ministry of Education and Training
Mr. Dinh Van Nha, Member of the National Assembly (MNA), gave the startling news to the parliament: “According to the recent recommendations of the State Audit Office, if these problems are delayed to be resolved, it may be within 1-2 months, Deoca Company may be forced to close Ca Pass Tunnel, abandon the unfinished Cu Mong Pass Tunnel Project and hand over the management and operation of Hai Van Pass Tunnel to the State management agency”.
“Through the meetings with voters, I know that the investor has suggested many times in the few years, but the Ministry of Transport has not dealt with issues under its authority, not timely advised the Prime Minister to take measures to rescue the enterprise,” added Mr. Nha.
Why are both works considered as the pride No.1 of the tunnel in Vietnam, why is the Company considered as the “King of Vietnam Tunnel”, so it absolutely needs to urgently call for help?
MNADinh Van Nha talked about the difficulties of Deoca Company (the operator of Hai Van Road Tunnel) due to the inconsistent policies from the ministries to the BOT Company.
Recently, Lien Chieu District Electricity (Da Nang) has issued the official letter to Deoca Company for demanding payment of a debt of 2 billion VND in electricity bill, along with the assertion that if delayed payment, the power supply will be cut off. A long road tunnel would be power off, meaning it must be closed.
However, in addition to the unpaid electricity bill, Deoca Company has not yet paid the management, operation and maintenance costs of Hai Van 1 road tunnel.
The debt of VND 2 billion in electricity bill is actually only the last drop in a glass with full water in the delayed hand of the Ministry of Transport.
On September 3rd, 2017, Deoca road tunnel started to collect tolls. But from that first day, the Ministry of Transport “forgot” the tariff approved by themselves for the investor in accordance with the financial plan.
After the Ministry issued the Circular 35/2016, they forgot the mention of the toll rates for the road tunnel. Therefore, Deoca can only collect tolls equal to the normal road tolls (ie, lower significantly than the approved and signed one with the investor under the project contract).
And yet, under the financial plan approved by the Ministry of Transport on October 5th, 2016, Nam Hai Van booth would be tolled from January 1st, 2017 to have sufficient funds to perform the operation management and payback for repairing and upgrading of Hai Van 1 tunnel and National Highway 1 passing through Hai Van Pass.
However, then, the Ministry of Transport approved the plan of Nam Hai Van booth removal, and the investor was forced to use the same Bac Hai Van booth to collect tolls and payback. Thus, instead of two projects with 2 toll booths, now there is only one, making financial plan of Deoca Company seriously imbalanced.
Deoca Company said that despite of issuance of decision causing harm the Company, the Ministry always repeated the sentences: “Recommendations are to be recognized and then continues to report to the Prime Minister.”
While the Ministry as “continuing to recognize”, in opinion of Mr. Luu Xuan Thuy, Deputy General Director of Deoca Company, within a period from January 1st, 2018 to October 1st, 2018, the project had a revenue deficit of about VND 65.7 billion, monthly average of VND 7.3 billion.
Deoca Company said that in the past years, although the Company has suggested several times to the Ministry for amendment of Circular 35, and supplementation of additional road tunnel toll rates; Although the Ministry held consultation meeting to amend them, including presence of the Ministers and Deputy Ministers took turns to resolve them, but the Company still have to call for help in desperation so far. They still have to suffer from inadequate mechanisms and regulations arising that are not included in the signed contract terms.
Hai Van Tunnel, the pride No.1 of the tunnel road in Vietnam
Who will be removed from office?
A few months ago, during the National Online Conference on Unclogging for construction investment, chaired by the Prime Minister, Mr. Thuy himself, submitted his speech on suggestion of amendment of Circular 35 and also reiterated some commitments that MOT failed to perform with the Company.
Even, Deoca Company’s speech suggested dealing with accountabilities of some leaders involved in the outstanding traffic industry.
The fact that a large enterprise, for the first time, dares to openly face the industry managers, it is surely reluctant, in the situation where all businessmen have to grind their teeth and tell themselves “Better bend than break.” But even those last moves fail to bring any results.
In April this year, the Ministry of Construction held the sign mounting ceremony for the typical construction project for Deoca road tunnel, on the occasion of the 60th Anniversary of the Construction Tradition (only 5 awarded works in the whole country).
Putting Deoca Tunnel into operation helps to shorten the distance of the road with 21.4km long by the pass down to 13.19km passing through the tunnel, shortening the travelling time from 45 minutes to more than 10 minutes.
In addition, at lightening construction speed of “all day and into the night”, Deoca tunnel was finished ahead of schedule of 2 months earlier than expected one, saving nearly VND 4,000 billion, becoming a strange phenomenon among countless key projects that last longer than expected schedule every year and incurred funds of VND trillions.
Nevertheless, the more lightening construction speed and drastically at the construction site is, the more the investor still unable is to push up a “Calm Apparatus” when handling problems for the investor at an agency that should be the most support them: it’s the Ministry of Transport.
Deoca owes his electricity bill and power shall be cut off. That is fair. But the Ministry of Transport failed to comply with commitments, and stagnant in unclogging policies, then who will dismiss those from their duties?
When Bac Giang-Lang Son Expressway Project has been nearly bankrupt, because UDIC investor was no longer able to perform it, the Ministry of Transport called for other enterprises to rescue. It is Deoca itself who volunteered to undertake this duty, and the company continued to push the project forward with lightning speeds, expected to save trillions of VND.
When Deoca Company has faced problems due to the unreasonable mechanism of the Ministry of Transport itself, the Company suggested unclogging, it is strangely, no one rescued it.
Time is an opportunity, money, and belief of the investor. A complicated project like Deoca, the investor has done everything to finish ahead of schedule, saving the trillions of VND for the State, but in return, what does the investor get? If working on a basis of the true constructive spirit, the Ministry of Transport headquarters should be the most flowing place, but it is not so contrary.
While Prime Minister Nguyen Xuan Phuc and his tectonic Government, constantly was meeting and talking with businesses and managers, to unclog the bottlenecks, the delay from the Ministry of Transport in unclogging problems caused by itself, making significant concern for the investment environment in this very sensitive and costly field.
At suggestion by Deoca, if these problems are not resolved, if the Ministry of Transport fails to assure the funding source as committed for the project, by November 5th, 2018, Hai Van 1 tunnel will suspend operation and “Ministry of Transportation shall be solely responsible”. The investor will also report to the Prime Minister and suggest returning the project to the Ministry of Transport.
Upon the posting forums in the National Assembly for two days, Minister The has mentioned many matters of being inspected and audited regularly, however, he keeps promises to continue efforts to unclog the key projects.
Voters have the right to ask: How will key projects be unclogged when outstanding problems with the big investor have not been resolved and beliefs have not been restored?
The examination in the National Assembly had been over, but Minister Nguyen Van The shall certainly have to prove to the MNAs and voters that he is really a Minister of Action, whose first action is to fight successfully “Tectonic Congestion” at right his headquarters.
By Nhip song kinh te/ Soha
