The Prime Minister had issued an official order to direct fostering and implementing Electronic Toll Collection (ETC). Vietnam Association of Road System Investors (VARSI) claimed that it was in the right time to foster ETC to be operated faster in the upcoming time
According to the official order of Prime Minister announced that, after the period, Transport Minstry (GTVT) ministries, departments, localities had actively implemented ETC, and gained initial results, but it was still slow. Therefore, Prime Minister requested it to be implemented more urgently, guaranteed prior to December 31st, 2019, all domestic toll booths would be switched to utilize ETC fee.
Applying technology in fee charging would reduce costs, time for traffic participants, reduce number of personnel for investors and facilitate to control credit investment bank’s cash flow. However, applying ETC increased costs: such as Cam Thinh BOT (Khanh Hoa) increased 369 billion VND, and increased toll collection period to 1 year 7 months more. What kind of technology applicable that would increase the debts to society like that?
(Mr. DANG DAI – Deputy Chairman and General Secretary of Vietnam Association of Road System Investors
Mr. Dang Dai, Deputy Chairman of Varsi
Previously, on July 8th, 2019, at Directorate for Roads of Vietnam, Transport Ministry and a number of BOT investors, who had a meeting on unanswered and disagreed contents, to sign appendix of ETC contract.
Afterward, July 10th, Transport Ministry agreed on a number of contents with Phuoc Tuong – Phu Gia BOT investor and both parties signed a minutes of agreement on adjusting a number of inappropriate contents in ETC implementation.
Difficulties in implementing ETC
Regarding to electronic toll collection policy, Mr. Pham Quoc Vuong – General Director of Phuoc Tuong – Phu Gia BOT (under Bac Hai Van BOT), shared: “ETC is a right police of Government, we wholeheartedly support it. Modernization of toll collecting technology shall facilitate vehicles to reduce time, cost and guarantee order and security, preventing the risks of traffic jam at toll collection booth”.
Mr. Nguyen Van Ngoi – 194 Investment Construction Joint Stock Company, one of the BOT investors said that in reality all booths in National Highway 1 have been installed with and operated at 2 automatic lines at least more than 1 year. According to him, it presented supporting on Government policy from BOT investors.
However, in official dispatch on July 5th, 2019 issued by Directorate for Roads of Vietnam, stating request on 4 BOT to “stop collecting toll”, if not installing ETC collecting fee (including Cam Thinh BOT of Company 194), responded Mr. Ngoi: “Directorate issued an unclear notice making Transport Ministry leadership misunderstands, public misunderstands and cause disadvantage to BOT investor and investment mobilization policy according to PPP method of the Government”.
According to Mr. Pham Quoc Vuong, implementation of ETC system during such period of Transport Ministry, which has exposed many disadvantages, illegal and against regulations of BOT contract, Credit contract, Deposit contract between project enterprise / investor and related perties.
Such as Transport Ministry has signed BOO1 contract with ETC service provider (VETC Joint Venture) at 34 BOT projects, but not negotiated with BOT investor, after that issuing requirements for BOT investors signing contract with VETC.
On the other hand, Transport Ministry also imposes rate for the costs paid by BOT investors to ETC service provider (VETC). Itis supposed to be agreed and negotiated by both investors on the basis of using services of each other.
Participation of Transport Ministry on this relation in a surprising business and at the meeting on July 8th at Directorate for Roads of Vietnam, Mr. Luu Xuan Thuy – Deoca Group Deputy Chairman of the Board has to raise a question: “Why does Transport Ministry negotiate in place of enterprises?”.
Mr. Dang Dai, Deputy Chairman and General Secretary of the Institute observed at another perspective: “technology applicable in fee charging also reduces costs for people, enterprises. However, ETC application also raise other costs, such as: Cam Thinh BOT (Khanh Hoa) increasing 369 billion VND, increasing fee collecting period 1 year 7 months more. What kind of technology applicable that would increase the debts to society like that?
According to Mr. Dai, Government auditing authorities, the banks had to join in and clarify investment cost, capital payback method and operation of BOT and ETC investors as soon as soon as possible.
Another difficulty was previously BOT investors had the right to collect fee and approved by Transport Ministry for loans from the bank. Now, Transport Ministry requested to handover toll booth for ETC service provider, which will affect seriously to legality of deposit contract.
Proposals of Varsi
In order to resolve and foster electronic toll collection works according to schedule requested by Prime Minister, Assoc. Prof. PhD. Tran Chung – Chairman of Vietnam Association of Road System Investors proposed that: requesting Transport Ministry to comply with implementing electronic toll collection system’s schedule by requesting competent State authorities (a party in BOT contract) and shall sign appendix of contract with BOT investor before signing contract with ETC service provider.
For BOT investors, it is required to perform research in details provisions which was ETC service provider applied according to BOO method (Building – Own – Operation) ETC toll booth as basis for negotiation and entering into contract before signing contract with ETC service provider. Therein, it is required to present risks and requests of competent Government authorities to resolve.
State Bank shall request banks sponsoring capital for ETC project and BOT projects, to voice their opinion on Transport Ministry requesting to handover toll booth and impose ETC cost level to not affect legality and credit methods which was signed by and between Capital sponsoring bank and BOT investors.
Official order no. 849/TTg-CN of the Government stated: review, propose adjustment, supplement Decision no. 07/2017/QD-TTg dated March 27th, 2017 on ETC road using fee, guarantee to be conformed with requirements of new situations. One of the requests demanded to be amended by investors, was Article 22 since they claimed “it is illogical”.
Article 22 regulating on handover schedule of toll booth management, operation: no later than December 31st, 2018, BOT investor shall handover all toll booths under operation for ETC service provider; for BOT under construction after January 1st, 2019, BOT investor shall handover all management, operation matters for ETC service provider, after being put toll booth into operation.
According to the content of Article 22, after BOT investor contributing money to invest, build, it is required to transfer fee charging right for ETC provider.
According to Nhà Đầu Tư (Investor)
