Today (March 28), Deo Ca Group and Vietnam Development Bank (VDB) - Lam Dong Branch signed a cooperation agreement on financing investment credit capital to implement transport infrastructure investment projects under the public-private partnership (PPP) method.
Deputy Minister of Transport Le Anh Tuan attended and witnessed the signing ceremony between the two units.
Deo Ca Group and VDB Bank signed the agreement under the witness of leaders of the Ministry of Transport.
The two sides agreed to cooperate in financing state investment credit capital for transport infrastructure investment projects invested by Deo Ca Group.
The projects are included in the list of projects eligible for loans and meet the loan conditions as prescribed in Decree No. 78/2023/ND-CP dated November 7, 2023 amending and supplementing a number of articles of Decree No. 32/2017/ND-CP dated March 31, 2017 of the Government on State investment credit.
According to the agreement, the total expected capital supply for the period from 2024-2027 is about 20,000 billion VND, allocated annually.
Of which, in 2024 it is expected to be about 1,400 billion VND, in 2025 it is about 3,500 billion VND, in 2026 it is 9,600 billion VND and in 2027 it is expected to be about 5,500 billion VND.
The actual loan demand will be notified by Deo Ca Group to VDB Lam Dong Branch immediately after the projects are approved by competent authorities for investment policy.
VDB Lam Dong Branch will be responsible for arranging and meeting the maximum demand for state investment credit capital for projects invested by Deo Ca Group; providing credit commitments suitable to the needs of each project.
At the same time, coordinate with Deo Ca Group to report to VDB Bank to remove difficulties and obstacles in the process of receiving loan appraisal, disbursement and debt collection of projects.
In return, Deo Ca Group is responsible for providing VDB Lam Dong Branch with a list of investment projects, expected loan needs, status and progress of investment projects as soon as the project has an approved investment policy.
Deo Ca also fully complies with regulations on borrowing investment credit capital from the State; effectively invests and manages project exploitation, strictly fulfills the obligation to repay the debt in full and on time: Principal, interest, fees (if any) ... and other regulations according to the credit contract, loan guarantee contract and other agreements signed between the two parties.
The leader of Deo Ca Group said that currently, to implement PPP projects, investors must mobilize capital from commercial banks with short terms and high interest rates.
It is more difficult when banks are often not interested in this field due to the low rate of state capital participation and many BOT traffic projects that have been implemented have encountered problems but have not been completely resolved.
"The cooperation between the two units will make it easier to mobilize capital to implement projects, reducing the financial burden for investors and contractors participating.
This also creates trust among stakeholders, promoting the project approval and implementation process," said the leader of Deo Ca Group.
Deo Ca Group is currently the leading unit in Vietnam in the field of investment, construction, and management of Vietnam's transport infrastructure projects.
After 38 years of construction and development, Deo Ca Group has 20 member units with 8,000 employees. To date, Deo Ca has completed more than 30km of road tunnels, more than 400km of highways & national roads, 6 large bridges and manages 15 toll stations nationwide.
In 2024, Deo Ca Group proposed to invest in more than 300 km of highways and belt roads from typical projects such as Huu Nghi - Chi Lang highway (in Lang Son), Tan Phu - Bao Loc (in Lam Dong), Ho Chi Minh City - Thu Dau 1 - Chon Thanh, Ring Road 4 through Binh Duong province, Ho Chi Minh City - Trung Luong - My Thuan phase 2... with a total investment of more than 100,000 billion VND.
From the PPP model, Deo Ca Group has pioneered the application of the PPP++ model with the aim of optimizing capital mobilization for the project by diversifying capital sources including state budget capital, equity, credit, construction profits, bonds, stocks and BCC contracts to improve mobilization efficiency and reduce risks during implementation.
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