Integrating travelers’ perceived factors in modeling the ceiling price of toll road: A case study of BOT projects in Vietnam

• Main Author: Đỗ, Việt Hùng
• Other Authors: Nguyen, Hoang Tung
• Format: Theses
• Language: English
• Published: 2020
• Subjects: Thu phí BOT; Trạm thu phí; Cơ sở hạ tầng; A; 624
• Online Access: http://repository.vnu.edu.vn/handle/VNU_123/70395
• Institution: Vietnam National University, Hanoi

The Build-Operate-Transfer (BOT) scheme is considered as an attractive means by the Vietnamese government to develop new infrastructure projects. They were started to widely carried out from 2011 and it is predicted to continuously increase in the future. The toll price of BOT road given by investor is set under the ceiling price that is regulated in Circular of Ministry of Transport. It can be seen that most of BOT toll road projects have applied charge that are nearly equal to the given ceiling prices. Nevertheless, the ceiling price at this Circular did not consider the scale of road, as well as did not take into account of travelers’ willingness to pay to toll price. There has not ever researches of the topic to previous studies. Therefore, this study focused on integrating “willingness to pay of travelers” to model of toll ceiling price in BOT road project by using a bi-level programming model to formulate for a simple two-road network to optimize toll price and propose ceiling pricing for BOT projects. Some important findings of ceiling price include: (1) If government does not restrain toll price on BOT road, that leads to a negative social welfare; and (2) there must exist price which is maximum threshold of toll price for BOT road in order that social welfare becomes positive; and (3) ceiling price is set to be equal to minimum of “willingness to pay” and the threshold of toll price above.