Deo Ca, Hai Van tunnels at risk of shutdown

31-Oct-2018 Intellasia | The Saigon Times | 6:00 AM Print This Post

The Deo Ca and Hai Van pass tunnels, the largest in the country, are likely to be shut down because of a shortage in the capital needed for operations. The operator of Deo Ca Pass Tunnel faced losses of VND65.7 billion in the year to October 1, while the investor in Hai Van Pass Tunnel has yet to pay their electricity bills of more than VND2 billion, according to Lao Dong newspaper.

Luu Xuan Thuy, deputy general director of Deo Ca Investment JSC, the operator of Deo Ca Pass Tunnel connecting Phu Yen and Khanh Hoa provinces, said the fee collected from tunnel users was much lower than the level approved by the Ministry of Transport, resulting in the company’s losses of some VND7.3 billion per month since early this year. The company has repeatedly proposed the Ministry of Transport remove existing obstacles, but its efforts have not paid off.

On October 15, the company once again proposed the ministry allow it to collect the toll fee as regulated by the build-operate-transfer contract. If the proposal is not accepted, the firm will return the tunnel to the ministry for operation.

The Ministry of Transport, on October 5, 2016, approved the financial plan of the Deo Ca Pass Tunnel project. Accordingly, the toll for using Deo Ca Tunnel was fixed at VND60,000-VND288,000 per trip from January 1, 2018, to December 31, 2020. However, the company currently collects only VND52,000-200,000 per trip, depending on the tonnage of the vehicle.

Meanwhile, the Lien Chieu Power Branch of Danang Power Company Limited has urged Hai Van Tunnel Management and Operation JSC (HAMADECO), the operator of Hai Van Pass Tunnel linking Danang City and Thua Thien-Hue Province, to quickly pay their electricity bills.

In addition, the tunnel operation and maintenance costs have yet to be paid.

According to news site Vietnamplus, Ngo Tan Cu, director of Danang Power Company Limited, has written to the Ministry of Transport asking for help. The power supplier expected the ministry to direct HAMADECO to pay the electricity bills as well as prepare the electricity costs for the remaining months of the year.

Danang Power Company Limited does not intend to cut the electricity in the tunnel, Cu affirmed.

https://english.thesaigontimes.vn/63742/deo-ca-hai-van-tunnels-at-risk-of-shutdown.html

 


Category: Business, Vietnam

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