Building an effective capital plan to implement the RECAF Project in Dak Lak province

The project aims to reduce emissions from deforestation and forest degradation by addressing the drivers in the agriculture and forestry sector, promoting strategic and effective investments in the restoration and sustainable management of forests, and empowering and improving the adaptive capacity of target communities and institutions to improve livelihoods, reduce poverty and better respond to climate change.

The project will be implemented from 2025 to 2028 in 4 districts: M'Drak, Ea Kar, Krong Bong and Lak. The total investment of the project is 19.53 million USD (equivalent to more than 468.7 billion VND). Of which, ODA capital (non-refundable aid) allocated by the Central Government is 100%: 153.57 billion VND (equivalent to 6.4 million USD), ODA loan capital: 203.97 billion VND (equivalent to 8.5 million USD), and the provincial budget's counterpart capital is balanced: more than 111 billion VND (equivalent to 4.63 million USD).

The goal of the RECAF Project in Dak Lak province is to restore and sustainably manage forest areas. ( In the photo: A forest plot in Dak Lieng commune, Lak district).

The plan to repay principal, interest and fees for the province's re-loan is 2.55 million USD (equivalent to 61.2 billion VND), which will provisionally calculate the province's obligation to repay principal and interest at a total of about 109.36 billion VND (of which, 61.19 billion VND is principal and 48.17 billion VND is interest and fees); on average, 4.37 billion VND must be paid each year and the highest estimated year to be paid is 6.7 billion VND.

The expected repayment plan for the principal debt is to be paid within 20 years (2 installments per year), starting from 2030; for the interest and fees, it is to be paid within 25 years (2 installments per year), starting from 2025. The provisional interest rate and fees are 6.18%. including a provisional floating interest rate of about 4.29% plus a provisional fixed spread of 1.64%/year and a re-lending management fee of 0.25%/year.

This plan has been submitted to the Provincial People's Council for approval for implementation, in which Dak Lak province commits to fulfill the obligation to repay the principal, interest and fees incurred for the re-borrowed capital of the Dak Lak RECAF Project.

In addition, the Provincial People's Committee is responsible for reviewing the outstanding loan balance of the local budget at the time of re-borrowing request, not exceeding the outstanding loan limit of the local budget, according to the provisions of the law on state budget; ensuring accuracy of data in the loan use plan, re-borrowing plan and loan repayment.

Source: https://baodaklak.vn/kinh-te/nong-lam-nghiep/202504/xay-dung-phuong-an-von-hieu-qua-trien-khai-du-an-recaf-tinh-dak-lak-2fe0d5c/