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Hai Van, Deo Ca Tunnels at risk of shutting down
  • | | November 01, 2018 10:04 AM
Two of the longest tunnels in Vietnam, Hai Van 1 and Deo Ca, may be shut down as the manager of the BOT projects are unable to pay the electricity bills.


Deo Ca Tunnel

Luu Xuan Thuy, deputy director of Deo Ca Investment JSC said they were forced to follow Circular 35 about the maximum toll rates for road investment projects and had collected a much lower toll than the approved plan by the Ministry of Transport.

As the result, they suffered VND65.70bn (USD2.8m) in loss from January 1 to October 1. They have filed complaints to the Ministry of Transport multiple times in the struggle to maintain the operation of Co Ma and Deo Ca tunnels.

On October 15, Deo Ca Investment JSC asked the Ministry of Transport to let them apply a higher toll of VND60,000-VND288,000 (USD2.57-12.35) per trip instead of the current VND52,000-200,000. If the proposal is not accepted, they will return the tunnel to the ministry.

Deo Ca Investment JSC also hasn't paid VND2bn (USD85,700) electricity bill for Hai Van 1 Tunnel, prompting Lien Chieu Power Company to issue the statement that they will stop providing services to Deo Ca Investment JSC if payment is delayed.

The company is also unable to pay for the operation and maintenance costs of Hai Van 1 Tunnel.

On October 18, Deo Ca Investment JSC asked the Ministry of Transport to provide funds to continue the operation of Hai Van 1 Tunnel. The company said that the ministry would take all responsibility had there been not enough funds and Hai Van 1 Tunnel had to shut down.

"The ministry is violating the contract. So we have to look into the option to report this case to the prime minister and return Deo Ca and Hai Van tunnels to the ministry," Dao Ca Investment JSC wrote in the report.

According to the financial plan approved by the Ministry of Transport on October 5, 2016, the toll via Hai Van 1 Tunnel should have been collected since January 2017. However, the location of this toll station is only 12km away from the tollgate of the Phuoc Tuong - Phu Gia Tunnel in Thua Thien - Hue. As a result, the ministry decided that tolls for Hai Van 1 Tunnel would also be collected at Phuoc Tuong - Phu Gia Tollgate.

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