Projects of the transport industry in recent years have been implemented very effectively, which is creating momentum for socio-economic development. The investment in key projects in the form of BOT contracts of the transport sector is getting the appreciation of experts and deputies at the 9th session of the National Assembly XIII.
Enhancing economic competitiveness
The Ministry of Transport has successfully mobilised social resources to invest in the development of transport infrastructure in recent years. Mr Le Nam, Deputy Head of Thanh Hoa province's National Assembly deputies delegation evaluated that it is necessary to mobilise social resources for the development of transport infrastructure, particularly in the context of tough economy, and then we could redeem, Highway 1 is a typical example.
Mr Mai Xuan Hung, Deputy Chairman of the NA Economic Committee said that, if there is no transport infrastructure, we will not be able to attract foreign investment. This is one of the most important sectors, greatly influencing the development of the economy; thus, it will definitely be invested heavily. "The investment restructuring is effective initially. Previously, we have to struggle to mobilise private investment for economic development. But since 2014, the idea of exploitation of investment from all economic sectors is expanding. Except for BOT and PPP, Vietnam has sold transportation projects to get money for investment. This breakthrough will definitely add more resources that the economy is lacking. Mr Hung also added that, in recent years, the Ministry of Transport has been very aggressive in putting policy into reality, creating the basis to persuade all people to understand that the mobilisation of social capital and economic sectors to invest in infrastructure is essential and beneficial to the people.
Mr Hung said that the investment projects under BOT are promoting positive effects; the problem now is how to conduct investment control transparently and efficiently to create confidence from the people. Previously, it has not done well, but now it must be good. A capital contract when putting into investment also needs to be open and transparent to get trust from people. Transparency in policy, management and control has helped bring many socio-economic benefits.
Traffic project quality is guaranteed
During discussion on issues related to transport sector, Minister of Transport Dinh La Thang said that at the 4th Plenum, the 11th Central Committee approved Resolution 13 on "Setting infrastructure structure synchronically to make ours basically a modern - oriented industrialized country by 2020 ". Accordingly, the Resolution states: "Attracting economic sectors, including foreign investors to develop infrastructure structure and ensure benefits of investors; Extending the cooperation between the State and people; Amending and supplementing provisions on support policies on finance, taxation, price, charges, fees and franchise, to increase the commercial property of the project and the contribution of people; Completing mechanisms and policies to encourage investment in the form of PPP, BT, BOT.”
Thus, Minister Thang said that the socialisation of investment in transport infrastructure is already determined in policies in Party documents. By this time, the legal framework for private participation for investing in projects of the transport sector has been specified in the current system of legal documents. However, in the future, a number of mechanisms still need to be adjusted and completed to create more favourable conditions for the implementation, attract more investors and harmonize the interests of the Government, investors and users.
Explaining the road-user charge being applied on all vehicles even with the BOT fee on roads, Minister Thang said that, under the provisions of the Road Traffic Law 2008, to manage and maintain kinds of road, the Ministry of Finance issued two circulars on road-user charges, that were: road-user charges on all vehicles performed by the register agencies and a direct charge at the BOT station by BOT investors. Thus, the above charges are reasonable and not overlapping. Since charges paid directly at stations are used for BOT investors for return on investment and expenditure on the management and maintenance of roads which are constructed from BOT projects. And road-user charges on all vehicles collected by the register units are used to pay for the management and maintenance of highways and local roads invested by the State (excluding BOT road projects and not for return on investment".
Minister Thang said, every year, the Ministry of Finance has to allocate State budget funding to conduct the maintenance of the highway because road-user charges on all vehicles did not cover the expenses.
Evaluating BOT contracts, Minister Thang stressed that projects which are completed and put into operation have now brought many benefits: Create dynamics of socio-economic development and increase the competitiveness of the economy, assure defence - security, decrease the environmental pollution and traffic congestion and accidents.
He also said that the BOT form is being applied worldwide because it is not only effective in handling the lack of financial investment, but also gets close supervision from many agencies such as investors, government agencies, banks and users, so that it does not increase public debt in the context of the high public debt and mobilise idle capital of people through credit institutions, limiting waste and corruption in the construction. This solution is also contributing to the restructuring scheme of the transport sector; in order to improve productivity, lower the cost of transport, thereby enhancing the competitiveness of the economy.
Si Son
Vietnamese
