Cost of BOT projects drops: Transport Ministry

The Ministry of Transport yesterday said that by October, cost of most build- operate-transfer (BOT) projects decreased by VND100-500 billion compared to the initial calculation.

A section of Ho Chi Minh Path through the highlands province of Dak Nong (Photo: SGGP)

Investors of projects have submitted the balance sheets of 30 BOT projects in which cost of these projects reduced much more than the initiate estimation. For instance, the BOT Ho Chi Minh Highway through the highlands province of Dak Nong, it costs around VND634 billion, a drop of VND388 billion compared to the first calculation which was approved.

Similarly, balance sheets of BOT projects of the National Highway N. 1 in the section through the central province of Binh Thuan and the section of Phan Thiet-Dong Nai diminished hundreds of billions Vietnam dong. The Ministry explained the costs fall compared to the estimated investment because the investors did not use reserved expenditure.

Accordingly, the Ministry is reviewing the BOT projects nationwide based on independent auditing. After that, the Ministry will re-calculate the contract and the time for collecting toll. It is expected many projects will have shorter time of collecting toll.

By Bich Quyen - Translated by Anh Quan

Other news