Transport infrastructure transfer - pros and cons

The Ministry of Transport’s policy of selling operation rights of some transport infrastructure works has drawn public interest, the Quan doi Nhan dan (People’s Army) reported.
The Ministry of Transport’s policy of selling operation rights of sometransport infrastructure works has drawn public interest, the Quan doiNhan dan (People’s Army) reported.

Last year, theMinistry’s Vietnam Expressway Corporation planned to invite foreigninvestors to buy five highway projects including Noi Bai- Lao Cai, CauGie- Ninh Binh, Ben Luc- Long Thanh, HCM City- Long Thanh-Dau Giay andDa Nang- Quang Ngai.

The ministry has since allowed70 percent of the Hanoi-Hai Phong Expressway to be sold to an Indianinvestor to raise funds for other road projects.

Minister of Transport Dinh La Thang has also given the green light for apilot plan to sell the operation rights of international airports toraise funds for national aviation infrastructure projects, including theLong Thanh International Airport.

Both national flag carrierVietnam Airlines and low-cost carrier VietjetAir are seeking permissionto purchase the T1 terminal at Noi Bai International Airport.

The airlines said that owning the terminal will allow them to cut operation costs and improve the efficiency of services.

Users of public transport facilities also hope for better services androad maintenance when private operators take management.

However, there are concerns about overcharging, and how the State will monitor the operation of transport works in question.

Therefore,a detailed legal framework on the infrastructure transfer needs to bebuilt to ensure harmonious benefits among the Government, investors andthe public.

Highways, terminals and sea ports are considered tobe a “fertilised land” to attract investors due to low-risk investment.The pilot infrastructure transfer promises to attract capital for newprojects and increase the efficiency of the transport system towardsrealising a comprehensive infrastructure network in the country.-VNA

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