The research unit of Dong Dang - Tra Linh Expressway Project proposed to issue corporate bonds to raise capital for the Project.
Mr. Lai Xuan Mon – The Secretary of Cao Bang Provincial Party Committee chaired the meeting
This afternoon (July 14), at the meeting of the Steering Committee for the Dong Dang - Tra Linh Expressway Project (Lang Son - Cao Bang), Mr. Le Hai Hoa, Vice Chairman of Cao Bang Provincial People's Committee, said that the Project has just been studied to adjust closer to the border gate, not to go to Cao Bang city, and simultaneously remove the expressway intersection with the city. In order to connect with the expressway, the province will upgrade National Road 34 to connect with Cao Bang city.
According to this plan, the distance from Cao Bang city to Dong Dang (Lang Son) in the first phase will be 93 km, which will decrease by 3 km compared to before. The total project investment capital in the phase was reduced from 13.700 to 10.646 billion VND. The capital structure will include: about 5.250 billion VND of the state budget capital, 870 billion VND of investor's capital and over 4.000 billion VND of mobilized capital.
Mr. Lai Xuan Mon assessed that the alignment adjustment plan does not affect the expressway project. Besides, it facilitates to bring into play the local land potential, reduces the total project investment capital to easily attract the State and business capital. The province is clearing the ground and mobilizing enough the capital from the local budget as committed.
However, Mr. Mon said that Cao Bang is a poor province with the majority of people being ethnic minorities with only 2.000 billion VND per year of local budget. Therefore, the province proposed to the Government to increase the support capital to 60-70%, instead of the maximum of 50% according to the provisions of the current PPP Law.
In addition, the province proposed the Government to allow the separation of the ground clearance (about 1.000 billion VND) into an independent project using the local budget capital of Lang Son and Cao Bang and not included in the total state budget capital participating in the project.
“The support capital from both central and local budget is quite sufficient. The biggest difficulty right now is credit capital from banks", said Mr. Mon.
On the side of the unit participating in project research, Mr. Ho Minh Hoang - Chairman of Deo Ca Group said that in order to remove difficulties in credit capital, it is necessary to issue corporate bonds.
According to Mr. Hoang, the capital mobilized from the issuance of corporate bonds to implement the Dong Dang - Tra Linh Expressway is about 4.522 billion VND. The bonds will be converted and secured by the right to collect toll and payment guarantee from competent authorities. The bond interest rate will be about 13% per year.
The bond issuer is Deo Ca Group, Deo Ca Traffic Infrastructure Investment JSC (stock symbol: HHV) and the project enterprise. Implementation partners are individuals, financial organizations, domestic and foreign enterprises.
Dong Dang - Tra Linh Expressway Project is 115 km long with the total construction investment amount of over 20.900 billion VND, of which the section through Lang Son is 52 km long, that through Cao Bang is 63 km long. The project is invested in two phases. In the first phase from now to 2024, about 93 km of the Project with 17m wide road bed from Lang Son to Quang Hoa district (Cao Bang) will be invested. In the second phase after 2025, about 22km of that to Tra Linh border gate will be invested.
By DINH QUANG
Source: https://www.baogiaothong.vn/de-xuat-phat-hanh-trai-phieu-doanh-nghiep-lam-cao-toc-dong-dang-tra-linh-d516042.html
