According to Vidifi, if state support for a $ 300 million loan is not included in the medium-term plan for the 2016-2020 period, it will cause huge financial difficulties, Project finance.
Vidifi has not decided yet
Sending proposals to the upcoming Prime Ministerial and business conference in 2017, Vietnam Infrastructure Development and Financial Investment Corporation (Vidifi) expects the Government, Ministries The restructuring of foreign loans of the Ha Noi – Hai Phong Expressway Project will be resolved soon.
Specifically, the total foreign loans of the Ha Noi-Hai Phong Expressway project are $ 300 million, including $ 200 million from the Korea Export-Import Bank and $ 100 million from the German Rebate Bank
With regard to this loan, the Ministry of Finance has issued Document No. 1626 / BTC-QLN dated November 14, 2016, asking the concerned ministries and sectors on the draft mechanism of conversion and support for foreign loans. investment for the project.
Accordingly, VIDIFI is responsible for paying interest, the repayment of principal will be financed through the Ministry of Transport and Communications, which is balanced in the medium term investment plan in each period.
However, on January 13, 2017, in the document No. 348 / MPI-KTDN, the Ministry of Planning and Investment is not consistent with the proposal of the Ministry of Finance. Specifically, the ministry said that many agencies (including the Ministry of Transport) are facing difficulties in the balance of foreign capital planning … Therefore, the proposal to put components implemented by capital Korean and German loans in the project to the public investment plan of the Ministry of Transport is difficult to have a basis to arrange capital.
Breaking the financial plan?
According to Vidifi, on the audit report of the high-speed project Hanoi – Hai Phong on January 20, 2017, the State Audit has proposed the Prime Minister to direct the Ministry of Finance, the Ministry of Planning and Investment, the State Bank of Vietnam and relevant agencies in inspecting and directing the implementation of the Prime Minister’s Decision No. 746 / QD-TTg dated May 29, 2015.
“At present, financial indicators are relatively close to expected in the updated financial plan of the project, which is reviewed by the Ministry of Transport and reported to the Prime Minister. for the project under Decision 746 / QD-TTg of the Prime Minister, has not been implemented yet (including the ground clearance support cost of the project of about VND 4,069 billion; foreign loans of $ 300 million).
Vidifi said that if the state support to the project is not included in the medium-term plan for the 2016-2020 period, it will pose a great deal of financial hardship and even disrupt the financial plan Project.
Currently, the two routes are VND5.5 billion per day, VND8 billion per day, VND2.5 billion per day (around VND900 billion per year) Loan interest accounted for 94% of expenses during the operation period of the expressway.
According to Vidifi, given the large amount of loan capital provided by the Vietnam Development Bank (VDB), if the subsidies not granted under Decision 746 / QD-TTg will seriously affect This activity of the Bank.
In addition, the state subsidies that are not provided in time will affect the attraction of investment in the form of PPP as well as attract foreign investors into the state infrastructure is encourage.
Ha Noi – Hai Phong Expressway project has a total investment of VND 45,587 billion, of which construction and equipment costs are more than VND 30,500 billion; the cost of ground clearance is nearly VND 3,700 billion, consultancy cost is nearly VND 1,160 billion. Total length is 105.5 km, design speed 120 km / hour, there are 6 toll stations.
According to Vidifi’s report, the average number of vehicles on the road in 2016 reaches 20,000-25,000 vehicles / day, the first time in March 2017 reached 28,000 vehicles / day and night.
Traffic on the expressway currently accounts for about 50% of total traffic flow Hanoi – Hai Phong. Considered as the most modern highway in Vietnam, it is expected that Hanoi-Hai Phong expressway will be fully loaded after 18 years of exploitation.
In 2016, Vidifi achieved net sales of VND1,430 billion, up 11.8 times compared with VND122 billion in 2015. As a result, the average revenue per unit in 2016 is about VND4 billion. However, pretax profit of the company still recorded VND1,756 billion.
Total assets at the end of 2016 of Vidifi reached over VND38,700 billion. At the same time, the charter capital was more than VND3,700 billion, of which Vinaconex contributed VND40 billion.
The principal amount of the project by the end of 2015 is VND27.558 billion but on the financial plan, this is more than VND32,120 billion, the difference over VND4,500 billion.
After adjusting some input parameters as of September 30, 2016, The State Audit determines that the project’s actual recovery time may be reduced by 1 year 3 months 3 months compared with the plan submitted by the investor to the Ministry of Transport (28 years and 8 months).
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