Huu Nghi - Chi Lang Expressway Joint Stock Company has just sent a petition to the Provincial Party Committee, People's Council, National Assembly Delegation, and People's Committee of Lang Son province regarding some problems related to credit capital at the Huu Nghi - Chi Lang project.
Construction of Huu Nghi - Chi Lang expressway project.
In the document sent, Mr. Luong Van Hiep, General Director of the enterprise, said that immediately after the groundbreaking ceremony (April 2024), the investor consortium led by Deo Ca Group Joint Stock Company, together with the project enterprise (DNDA), the construction contractor mobilized 15 construction teams, 180 equipment, and 350 personnel to speed up the progress right from the beginning.
However, the Huu Nghi - Chi Lang expressway project is facing difficulties in arranging credit capital.
According to Mr. Hiep, on March 13, 2024, TPBank committed to providing credit capital of VND 2,500 billion and issued a contract performance guarantee for the project.
By April 14, 2024, the credit contract was signed. However, after 6 months, the credit capital has not yet been "poured" into the project.
The reason given by the bank is due to concerns about the low rate of State budget capital participation.
"The initial State budget capital for the project was allocated by the Government and the locality at VND6,000 billion (accounting for about 55% of the total investment), but the People's Committee of Lang Son province had to adjust it down to ensure the maximum rate according to the provisions of the PPP Law.
Currently, TPBank is concerned that the rate of State budget capital participation is not yet effective. When actual revenue is not guaranteed, the State will not share or support it according to the provisions of Article 82 of the PPP Law," the document stated.
Also according to DNDA, another reason why TPBank is cautious in disbursing credit capital for the Huu Nghi - Chi Lang project is because some financial problems in the previously invested Bac Giang - Lang Son expressway project have not been thoroughly resolved.
As a route connecting to the Huu Nghi - Chi Lang expressway project, the Bac Giang - Lang Son expressway was stalled for nearly 5 years, without the participation of state budget capital.
When put into operation, traffic volume was much lower than initially forecasted due to many objective factors not caused by the investor (Deo Ca Group) such as: Removing a toll station on National Highway 1, widely exempting and reducing ticket prices... causing actual revenue to be only 39% of the initial financial plan, not enough to pay principal and interest to the credit provider bank.
After many petitions from investors and enterprises, Lang Son Provincial People's Committee reported to the Government to propose supplementing the State budget capital of 4,600 billion VND to support the project (accounting for 37.75% of the total investment, less than the prescribed 50%). However, to date, it has not been resolved by competent authorities.
Citing the case of the Dong Dang - Tra Linh expressway project, which has arranged capital from VPBank (VND 2,300 billion) thanks to the increase in State budget capital to approximately 70% of the total investment, Huu Nghi - Chi Lang Expressway Joint Stock Company proposed that the People's Committee of Lang Son province give instructions to continue to report to the Prime Minister to adjust the increase in the proportion of State budget capital supporting the Huu Nghi - Chi Lang expressway project to 70% of the total investment.
The enterprise also proposed that the National Assembly Delegation of Lang Son province recommend that the National Assembly amend the PPP Law in the direction that for exploited projects with serious revenue decline due to objective reasons (not the investor's fault), after applying contractual solutions but still not feasible, the competent authority should consider supplementing State capital support, up to a maximum of 70% of the total project investment capital based on the audited and settled value.
Source: https://www.baogiaothong.vn/du-an-cao-toc-huu-nghi-chi-lang-gap-kho-nguon-von-tin-dung-192241012101305377.htm
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