In the investment proposal for the North-South high-speed railway project, the Mekolor (Vietnam) and Great USA (US) investment alliance said the investment capital for the project is 100 billion USD and does not require any special government privileges, including counterpart funding or financial guarantees to implement the project.
In a conversation with VietNamNet reporter , Mr. Vo Xuan Truong, Chairman of Mekolor Joint Stock Company, representative of the investment alliance, continuously gave a lot of interesting information but it is difficult to verify immediately.
Mr. Vo Xuan Truong said: We have carefully studied the North-South high-speed railway project and see investment opportunities. With available capital, we feel we are capable of participating in the project investment with partners.
"If all goes well, the $100 billion could be recovered within 15 years of the project going into operation," he said.
To convince, Mr. Truong gave an example: Vietnam's population is about 100 million people, each year there are about 60 million trips from North to South by high-speed rail. If the ticket price is 50 USD/trip, the project will earn about 3 billion USD per year. In addition, we will establish about 40 product brands at 20 stations along the route. These business locations also bring in a significant source of revenue.
While famous enterprises such as THACO or VinSpeed only arrange their own capital accounting for about 20% of the project's capital, the alliance between Mekolor (Vietnam) and Great USA (USA) confidently arranges 100% of the capital.
Regarding this issue, Mr. Truong shared: I do not say that our financial potential is better or not better. Because, the financial potential of each unit also has information behind it. But we affirm that we have prepared investment resources for the North-South high-speed railway.
"We are ready to prove that we have 100 billion USD in hand. The money will be continuously disbursed to ensure the project," the Chairman of Mekolor declared and assessed himself as a new unit so he would be at a disadvantage compared to other units wanting to invest in the project. However, he repeatedly said that "capital and technology partners are available".
When asked by a reporter how the alliance arranged the aforementioned $100 billion, he reiterated the proposed economic initiative called One Mekong One Meal, and that the North-South high-speed railway was only part of the initiative and should be located within the corridor that was "planned from that time".
This representative continued to cite the total capital mobilized for the One Mekong One Meal initiative as up to 120,000 billion Euros.
This is an unrealistic figure because it is equivalent to the GDP of the whole world.
In response to concerns about how the alliance would prove its financial capacity, Mr. Truong said: We have a separate account for project investment. In the report sent to the Government agency, we also attached verified financial proof.
But when asked who authenticated it, he only gave a general answer that "a prestigious financial institution in the top 10 in the world authenticated it."
He also refused to answer directly the question of which business areas the units in the alliance, including Mekolor (Vietnam) and Great USA (USA), are focusing on and what their profits were last year. The reason given was that "it will be announced later in reports to government agencies".
Many opinions have assessed that this alliance's proposal to spend 100 billion USD to build a North-South high-speed railway is unrealistic.
The representative of this alliance declared that they "don't care about outside comments" and only need attention from the Government.
"Although there are doubts that I am "blowing wind" or declaring virtual capital, I am speaking as a representative of an alliance with American elements and must comply with international law. This is not a story to talk about. Talking wind at the national level can easily lead to legal trouble," said Mr. Vo Xuan Truong.
Previously, the High-speed Railway Investment and Development Joint Stock Company (VinSpeed) proposed investing in the North-South high-speed railway project in the form of direct investment, instead of public capital or PPP.
The company committed to self-arranging 20% of the capital, equivalent to 12.27 billion USD (excluding site clearance costs), and proposed the State to lend the remaining 49.08 billion USD without interest for 35 years.
VinSpeed also proposed that the State undertake the site clearance and commit to putting the project into operation after 5 years of construction. The proposed minimum ticket price is 60-75% of the ceiling price of air tickets. The project's operating period is 99 years. In addition, VinSpeed hopes to have a special mechanism to be designated as an investor in a number of urban and real estate projects in the vicinity of railway stations.
Meanwhile, Truong Hai Group Joint Stock Company (THACO) proposed to contribute 20% of the total capital (12.27 billion USD) through equity capital and legally mobilized domestic capital. The remaining amount of more than 49 billion USD, the enterprise will borrow from domestic and foreign credit institutions.
THACO proposed that the Government guarantee and support all loan interest for 30 years, secured by assets formed from the project. The company will divide the project into two phases, to be completed within 7 years.
Regarding the business plan, THACO proposed ticket prices approved by state agencies, on the basis of ensuring financial plans and payback periods for the project. The proposed operating period is 70 years. In addition, the enterprise wishes to be given priority in allocating land funds for urban development according to the TOD model (urban development associated with public transport).
Source: https://vietnamnet.vn/tac-gia-de-xuat-lam-duong-sat-toc-do-cao-100-ty-usd-chung-toi-khong-chem-gio-2409728.html
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