Rapid restructuring needed for transport sector: Deputy PM

Speaking at a conference in Hanoi on June 7 to review issues related to transport infrastructure investment in the form of build-operate-transfer (BOT) and build-transfer (BT) in the 2011-2015 period, the Deputy PM asked for better accuracy in determining total investment for BOT projects and transparency in selecting contractors.

He highlighted shortcomings existing in BOT projects, adding that it is necessary to enhance the inspection of projects in order to swiftly handle these weaknesses.

According to the ministry, the transport sector raised VND186.6 trillion (US$8.3 billion) to invest in 58 BOT and four BT projects in the reviewed period.

After being put into use, they have proved effective in meeting transport demands; easing traffic congestion, accidents and environment pollution; and promoting socio-economic development in beneficiary areas, contributing to increasing the competitiveness of the national economy.

In comparison to projects built in other forms, BOT and BT projects have helped reduce travel time, fuel consumption and vehicle depreciation.

Participants expressed their concern about the quality of projects, toll rates and plans for increasing tolls.

Representatives from the ministry said the Prime Minster assigned the Ministry of Finance to issue a circular regulating processes in deciding the rate of tolls.

Tran Dinh Thien, Director of the Vietnam Institute of Economics under the Vietnam Academy of Social Sciences, said investment in Vietnam’s BOT projects remains high compared to those in other countries, putting investors and the people at a disadvantage.

The State should make policies to support and give subsidies to investors to help them shorten repayment periods, he said.