Phap Van - Cau Gie Bot Joint Stock Company (Vietnam)

The subject was founded in 2014 to manage the project of upgrading the Phap Van - Cau Gie Road under the BOT format with a total investment of VND 6.73 trillion was carried out in two phases. In the first phase, the road was upgraded into a standard expressway with four lanes and a maximum speed of 100 kilometers per hour. The first phase of the project was put into service in Sep 2015. In the second phase, the expressway was upgraded and widened to have six lanes. The second phase of the project was put into service in Jul 2019. With the above investment, the subject is permitted to collect toll fees in 17 years and 3 months.The Phap Van - Cau Gie Road is one of the key routes of Hanoi City with heavy traffic. The subject was considered as “Chicken laying golden eggs” of its investors during the period of 2016-2019. However, due to the negative effects of the Covid Pandemic, the traffic volume on the Phap Van - Cau Gie Road was narrowed clearly in the last two years. Thus, the subject generated VND 654 billion and VND 606 billion of revenue in 2020 and 2021 (the figure in 2021 was disclosed by Mr. Tung - an admin staff of the subject), decreasing by 4.34% and 7.3% compared to the previous year, respectively. Meanwhile, the subject has just put the second phase of that upgrade project into operation in Jul 2019. Accordingly, with the higher amount of Depreciation and Amortization as well as soared Loan interest expenses, the subject reported noticeable losses in both 2020 and 2021.