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 infrastructure investment projects. transportation using 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.
Projects implemented are on the list of eligible loans and meet loan conditions as prescribed in Decree No. 78/2023/ND-CP dated November 07, 11 amending and supplementing a number of articles of the Decree No. 2023/32/ND-CP dated March 2017, 31 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 expected to be about 3.500 billion VND, in 2026 it is expected to be 9.600 billion VND and in 2027 it is expected to be about 5.500 billion VND.
The actual loan need will be notified by Deo Ca Group to VDB Lam Dong Branch immediately after the projects have their investment policies approved by competent authorities.
VDB Lam Dong Branch will carry out the responsibility of arranging and meeting the maximum demand for state investment credit capital for projects invested by Deo Ca Group; Provide credit commitments appropriate 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.
On the contrary, Deo Ca Group is responsible for providing VDB Lam Dong Branch with a list of investment projects, expected loan needs, status and implementation progress of investment projects as soon as the project is completed. have an approved investment policy.
Deo Ca also fully implements regulations on borrowing investment credit from the State; Implement effective investment and project management and exploitation, seriously fulfill debt repayment obligations 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.
Leaders 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 participating investors and contractors.
This also creates trust for stakeholders, promoting the project approval and implementation process," Deo Ca Group leaders shared.
Deo Ca Group is currently the leading unit in Vietnam in the field of investment, construction, management and operation of Vietnam's transportation 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 highways, 6 major bridges and manages 15 road toll stations across the country.
In 2024, Deo Ca Group proposes to invest more than 300 km of highways and ring 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 section 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 purpose of optimizing capital mobilization for the project by diversifying capital sources including State budget capital, equity capital, credit, construction profits, bonds, stocks and BCC contracts to improve mobilization efficiency and reduce implementation risks.
