(PL) - The credit agreement between Trung Luong - My Thuan BOT Joint Stock Company and the bank which committed to finance will be invalidated if until March 16 2020, the credit source for the project has not been disbursed.

On March 04, Mr. Tran Van Dung, Vice Chairman of Tien Giang People's Committee chaired the meeting with the State Bank of Vietnam, Trung Luong - My Thuan BOT Joint Stock Company (the Project enterprise) and VietinBank (the focal bank providing credit) to solve problems related to the disbursement of credit capital for Trung Luong - My Thuan Expressway Project.

Entangled in the last two disbursement conditions

According to the representative of Trung Luong - My Thuan BOT Joint Stock Company, the current obstacle is the credit capital of VND 6,686 billion (more than 50% of the total investment capital of the project) despite being signed by the parties from the December 16, 2019 but after nearly three months has not been disbursed. There are only 10 days left if credit capital is not disbursed, the credit contract will automatically void.

The reason for this delay is that the long-standing problems between the competent state agency - Tien Giang Provincal People's Committee and credit banks have not been completely solved. In addition, the People's Committee of Tien Giang province has not clarified the authority to sign documents related to the project that the credit institution requires.

Mr. Tran Van Dung, Vice Chairman of Tien Giang Provincial People's Committee the said that competent agency has carefully studied the last two disbursement conditions that the focal bank VietinBank has sent document to requiring for clarification. At the same time, a number of related ministries and agencies such as the Ministry of Finance, the Ministry of Planning and Investment and the Ministry of Transport also contributed opinions.

Specifically, firstly, Tien Giang People's Committee affirmed that the document of commitment to increase ticket price signed by the Vice Chairman of Tien Giang Province on behalf of the PPC was absolutely legal.

Secondly, on January 30, 2020, the bank send document request the Provincial People's Committee as a competent state agency issue a written approval for enterprises and shareholders to mortgage their shares to credit institutions. These are unprecedented requirements, no law stipulates for the competent agency these responsibility and authority. “Tien Giang province has made every effort in our ability, if the problem is not agreed by the parties, the People's Committee of Tien Giang province has to continue reporting to the Prime Minister” - Mr. Dung affirmed.

Trung Luong - My Thuan Expressway project is still under construction.

Photo: DONG HA

Credit contracts are in danger of being invalidated

According to Mr. Tran Van The, Deputy General Director of Trung Luong - My Thuan BOT Joint Stock Company, the arrangement of credit capital was very difficult at the begining. It took the project enterprise more than six months to negotiate and sign a credit contract, taking nearly three months to fulfill more than 17 prerequisite disbursement conditions specified in the credit contract.

According to the terms of the credit contract, if the loan is not disbursed on March 16, 2020, the contract will automatically void. “Until March 16, if the banks still do not disburse but continue to give unclear reasons and the People's Committee of Tien Giang Province could not disentangle the legal procedures issues, we could only delay the completion of the project. It’s impossibe to complete the route at the end of 2020 and inaugurate in 2021 as committed to the Prime Minister before.” - Mr. The said.

According to the project enterprise, from the beginning of March 2019 up to now, the project enterprise have made 34% of the total work volume, tripling compared to the past 10-year before Deo Ca Group involved in the project management.

DONG HA