The Investors of Trung Luong - My Thuan highway project have confirmed that they will try their best to continue speeding up the construction schedule, but they will not borrow from banks at any cost.
At the meeting on August 07th, 2019, the investors of Trung Luong - My Thuan highway project confirmed that they would try their best to continue speeding up the construction schedule, but they would not borrow from banks at any cost when the accompanying and guarantee of Tien Giang province has not been confirmed and there were still many risks that have not been clarified from the requirements of the lending bank; The unconvincing commitments, difficult disbursement conditions would be a consequence that the Investors shall suffer in the future.
To ensure the financial plan for the project, Tien Giang province has made many positive commitments such as: For the bank’s proposal on guaranteeing revenue or having support solutions in case the real revenue of the project to be put into operation is not satisfied the approved financial plan, the People’s Committee of Tien Giang province will have a report and ask for guidance from the Ministry of Finance and the Prime Minister.
Trung Luong - My Thuan Highway Project is under construction. Photo: NLD
In addition, Tien Giang province, Ministry of Transport commit to the proposal of not changing the current traffic plan to make change in the distribution according to the calculation in the signed financial plan of the credit bank, except the case there are other guidelines from the National Assembly and the Government.
Pursuant to Decision no. 2463/QD-UBND dated August 02nd, 2019 of the People’s Committee of Tien Giang province on approving the adjustment of the project feasibility study report, the People’s Committee of Tien Giang province and Trung Luong - My Thuan BOT Joint Stock Company shall carry out the negotiation and conclusion of signing Appendix to Contract for project amendment before August 15th, 2019. At the same time, consult the opinions from the financing banks for agreement before signing to ensure the conditions for the disbursement of credit capital in the future.
In addition, the competent authorities also proposes to set up a working group consisting of representatives of Tien Giang province, capital financing banks and investors to agree on the appraisal, approval and negotiation to sign the Appendix to credit contract as base for the People’s Committee of Tien Giang province to report to the Government to determine the abilities and responsibilities of the project participants. Agree to complete the signing before August 31st, 2019. The time for operation and completion of the project has been set in detail, but the time for credit loan is still general comments nothing is specific.
“From the above mentioned issues, the credit banks need to have specific actions and opinions when evaluating the lending and determining the suitable lending commitment conditions for the Investors to agree with Tien Giang province for implementation. Currently, the adjusted total investment and financial plan have been made, especially the roadmap of fee increase of 15%/3 years will take place in the near future after the project is completed and put into use. If the banks realize that there are still risks that need specific feedback, when considering beyond the authority, they will report to the Prime Minister for consideration. Or if it is too difficult to carry out borrowing, another source of capital shall be found to renegotiate the time to continue the completion of this national key project” stated by the representative of the Investor.
Former Minister of Transport Ho Nghia Dung said: “With the current status of BOT, through the inspections, disputes when people oppose to the adjustment of fee increase at toll stations on Highway 1A according to the financial plan, which has been signed by the competent state agency and the investors but there is almost no intervention of the locality where they spread the red carpet and actively carry out the land clearance and promote the completion of the project. To ensure the schedule, the investors need to be active and professional when working with involved Parties, they should not be in a hurry to exchange the commitment principles, the law regulations that have bound during the past time, the unclear disputes should be reported to the Government before implementation.”
Mr. Mai Manh Hong – General Director of Trung Luong - My Thuan BOT Company stated: “The preparation of plan and schedule should have base and based on the commitments of the parties related to the Project, the settlement solutions must be clear, transparent and sustainable. We request Tien Giang province to report to the Government, National Assembly and Vietnam Fatherland Front on the current positive happenings with potential risks in the near future when the project is put into operation with absolute development without any congestion. The investors also want to transfer information to the people and Associations with involved interests to better understand the difficult situation of the existing BOT projects which should be shared if they want the project to be completed timely.”
Trung Luong - My Thuan Highway project is a national key project, affirmed by the Prime Minister as a political commitment to 20 million people in the Mekong Delta. At the same time, this is also a transport route playing a key role for the socio-economic development of a large area, significantly contributing to the overall development of the country.
Currently, the project has been revived with bustling atmosphere after more than a decade of sluggishness. Many obstacles have been quickly settled by the Prime Minister, Tien Giang Province and other ministries to fulfill the promise to the Mekong Delta people.
2,186 VND billion of the support from the state budget for the project will be disbursed in 2019, plus the resources, determination of the investors and high sense of responsibility of Tien Giang People’s Committee, the schedule of operation in 2020 is feasible, but to make the project completed as scheduled in 2021, it depends on the bank’s credit capital for the project.
Therefore, the specific action of Tien Giang province, the definitive answer from the commercial bank financing the project are necessary to be clarified soon to avoid putting the project into a passive position, affecting the construction schedule, clear the previous irresponsible commitments, it is necessary to determine the time for the project completion.
Tuan Nguyen/Vnmedia
http://vnmedia.vn/kinh-te/201908/du-an-cao-toc-trung-luong-my-thuan-nha-dau-tu-quyet-tam-thuc-hien-nhung-khong-vay-von-tin-dung-bang-moi-gia-p2-638353/
