Noi Bai – Lao Cai and Cau Gie Expressway Management Company
Vietnam Expressway Development Investment Corporation (VEC) has just reported its business results for 2021.
Accordingly, the total revenue of VEC reached 7,176, 71% higher than the plan. The value of VEC’s budget payment is VND 747 billion, nearly 2 times higher than the plan of VND 381 billion.
Notably, the profit after tax in 2021 is up to 156 billion VND, while the plan is only 3.6 billion VND. VEC’s profit this year far exceeds that of previous years, reaching only a few billion dong per year.
According to VEC, in 2021, the implementation of investment projects, especially the Ben Luc – Long Thanh and Da Nang – Quang Ngai expressway projects will still face many difficulties due to problems with capital sources and obstacles. Questions about the authority to handle the work, and the handling of the case occurred at the Da Nang – Quang Ngai project.
In addition, VEC continues to implement the bidding packages for the eastern section of the Ben Luc – Long Thanh project, and at the same time considers continuing to advance from VEC’s temporarily idle source to promote the completion of the branch. West side of this project.
Talking about difficulties in 2021, VEC said, one of the difficulties is that the implementation of financial restructuring of expressway projects has not been completed yet, leading to VEC’s current capital plan has not been assigned. public investment for ODA loans. As a result, VEC’s projects, especially the Ben Luc – Long Thanh expressway construction project, stalled.
In addition, due to the lack of capital plan to disburse, some contractors at the Da Nang – Quang Ngai, Ben Luc – Long Thanh projects stopped construction on the construction site and sued for international arbitration.
The above problem also leads to the transfer of state capital directly invested in projects that have not been counted into VEC’s capital, so the properties of VEC’s projects are not currently within the framework of current regulations of the Government. law. Currently, VEC is still temporarily recording an increase in assets, temporarily depreciating depreciation, temporarily recording interest expenses and on-lending fees… The settlement of investment capital and O&M settlement has been delayed.
In May 2021, the Government issued a resolution to handle problems with a number of investment projects of enterprises represented by the State Capital Management Committee.
However, during the implementation process, the Ministry of Transport and the Committee had different opinions about the agency in charge of appraising and approving the financial plan to combine the cash flows of 5 VEC projects as a basis for proposing the Ministry of Transport. Finance re-evaluates the second ADB loan re-lending, submits to the Prime Minister for decision the use of capital of the 2nd ADB loan for unfinished items of the 1st loan (Western section).
As of December 31, 2021, the Ministry of Transport has approved the plan to combine cash flows for 5 expressway projects invested by VEC.
Currently, VEC is actively carrying out remedial work and handling the shortcomings that have been pointed out by the authorities. However, this work requires a certain processing time and cannot be completed soon. In addition, VEC must also use a considerable amount of personnel to provide documents and clarify the contents at the request of the authorities.
VEC . highway development milestones
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