The Government clarifies the urgency of adding charter capital to VEC.

If capital is increased, VEC will be eligible to mobilize credit sources to expand the expressways it is operating, with many sections already overloaded, and to carry out other expressway projects in the future.

The Government clarifies the urgency of adding charter capital to VEC.

If capital is increased, VEC will be eligible to mobilize credit sources to expand the expressways it is operating, with many sections already overloaded, and to carry out other expressway projects in the future.

A section of Noi Bai - Lao Cai expressway invested, operated and exploited by VEC.

On the afternoon of February 18, the Government issued Report No. 114/BC-CP to the National Assembly to receive and explain the plan to invest in additional charter capital for the period 2024 - 2026 of the parent company - Vietnam Expressway Corporation (VEC).

Regarding the need to mobilize investment capital and the urgency to supplement charter capital for VEC, the Government said that according to the approved Production and Business Strategy to 2030, with a vision to 2035 of VEC, the capital mobilization demand of this unit for projects in the period of 2021 - 2025 is about 14,890 billion VND (to complete the remaining items of the Ben Luc - Long Thanh, Da Nang - Quang Ngai Expressway Project and prepare for investment in expanding the Ho Chi Minh City - Long Thanh section).

VEC's investment capital demand for the period 2026 - 2030 is about 30,500 billion VND (to complete the Ben Luc - Long Thanh, Da Nang - Quang Ngai expressways, expand the Ho Chi Minh City - Long Thanh section and prepare to invest in expanding the Cau Gie - Ninh Binh expressway, the Noi Bai - Lao Cai expressway Yen Bai - Lao Cai section, expand the North-South expressway projects in the East...).

The progress of completing the above projects according to the direction of competent authorities is very urgent, in which: traffic routes connecting to Long Thanh International Airport such as Ho Chi Minh City - Long Thanh Expressway must be basically completed by 2025 and Ben Luc - Long Thanh must be completed by September 30, 2026.

VEC must also urgently prepare for investment and start construction in 2025 for the following projects: expanding Noi Bai - Lao Cai expressway (Yen Bai - Lao Cai section), expanding Cau Gie - Ninh Binh expressway, completing the remaining items of Da Nang - Quang Ngai expressway...

In order to mobilize capital from credit institutions to carry out investment according to the above schedule, it is necessary to submit to the National Assembly for consideration and approval of the investment plan to supplement charter capital for VEC as soon as possible.

The failure to increase charter capital has greatly affected VEC's production and business activities. If capital is increased, VEC will be eligible to mobilize capital sources from credit institutions to invest in projects, especially expanding expressways managed and operated by VEC (currently many sections are overloaded) and implementing other expressway projects in the future, contributing to the construction of national road traffic infrastructure in particular and socio-economic development in general...

“In addition, increasing charter capital creates a legal basis for infrastructure assets such as highways that VEC is exploiting to perform accounting and depreciation according to regulations. Therefore, investing in additional charter capital for VEC is very urgent,” the Government affirmed.

In Report No. 114, the Government clarified that the proposed additional charter capital is VND 38,251 billion (instead of VND 72,602 billion as stated in Official Dispatch No. 2393/TTg-KTTH dated December 30, 2015 of the Prime Minister) and the source of additional charter capital.

Specifically, in Document No. 2393/TTg-KTTH dated December 30, 2015, the Prime Minister agreed on the policy of adjusting VEC's charter capital by 2019 to VND 72,602 billion (including VND 1,000 billion of existing charter capital and VND 71,602 billion of additional investment charter capital).

This charter capital level is built on the basis of Decision 2072/QD-TTg dated November 8, 2013 of the Prime Minister on restructuring investment in 5 expressway projects of VEC (Cau Gie - Ninh Binh, Noi Bai - Lao Cai, Da Nang - Quang Ngai, Ho Chi Minh City - Long Thanh - Dau Giay, Ben Luc - Long Thanh).

Accordingly, the State directly invests in the above 5 projects with a total capital of 71,602 billion VND, in which all ODA capital currently implemented in the form of re-lending is transferred to the form of State direct investment in the project.

During the implementation process, there were changes in the total investment and capital structure, in which VEC's self-arranged capital increased and the actual disbursement of capital sources up to 2024 was VND 36,689 billion (verified and confirmed by competent authorities and VEC).

Therefore, VEC has proposed to use this disbursed VND 36,689 billion and VND 1,562 billion from VEC's Development Investment Fund to supplement charter capital investment in the period of 2024 - 2026.

The proposed charter capital of VND 38,251 billion for additional investment in VEC is in accordance with legal regulations on state capital investment in enterprises and management and use of capital and assets in enterprises. Currently, a number of projects invested by VEC are still continuing to disburse (including state budget capital).

Therefore, after completing the projects, VEC will continue to report to the competent authority to make additional investment in charter capital for VEC from the disbursed capital. It is expected that the charter capital to continue to be invested in the next phase (from 2027) will be about 4,000 billion VND (from the state budget).

The Government affirms that the provision of additional charter capital based on the disbursed public investment capital will ensure that all state budget funds spent are converted into enterprise capital; enterprises are responsible for preserving the state budget capital allocated.

Regarding the responsibility of the enterprise with additional charter capital, the Government said that the highway assets are being temporarily recognized by VEC as the enterprise's assets.

VEC is responsible for managing and using assets in accordance with the provisions of law on management and use of state capital invested in production and business at enterprises, complying with the provisions of law on auditing, accounting, tax and is responsible for preserving and developing the charter capital supplemented in accordance with relevant legal provisions.

Source: https://baodautu.vn/chinh-phu-lam-ro-tinh-cap-bach-phai-bo-sung-von-dieu-le-cho-vec-d247729.html