An advance of USD 51.9 million for the Ministry of Transport to borrow debt to repay 2 BT projects
The Prime Minister has just signed Decision No. 1314/2020 on repayment of government-guaranteed loans for 2 BT projects, which are National Highway 20 restoration and improvement project, section Km00-Km123 + 105.17 (Highway 20) and Ho Chi Minh road project, La Son – Tuy Loan section (La Son – Tuy Loan project) in September.
Specifically, the Prime Minister agreed with the Ministry of Finance to advance USD 51.93 million from the Debt Repayment Accumulation Fund to the Ministry of Transport to repay the September loan of La Son – Tuy Loan project and National highway project. 20 (of which La Son – Tuy Loan project is 33.12 million USD, Highway 20 project is 18.8 million USD) in accordance with the order, procedures and current legal regulations.
A section of the La Son – Tuy Loan expressway is about to be put into operation.
The Ministry of Transport is required to fulfill the debt repayment obligation; repay the above-mentioned advances in this year to the accumulation fund in accordance with regulations and promptly complete procedures for repayment of the Debt Repayment Accumulation Fund the amount of USD 746,314.26 already paid to the Ministry of Transport in 2019 to pay interest on late payment penalty of government-guaranteed loans for the two above projects.
The Prime Minister also assigned the Ministry of Planning and Investment to coordinate with the Ministry of Transport to arrange sufficient capital to fully and punctually pay the due debts of the La Son – Tuy Loan project and the Highway 20 project. Ministries and branches need to strengthen coordination in strictly implementing the Government’s commitments, avoiding ineffective coordination and failure of accountability leading to delayed debt payment.
It is known that in April 2015, following the direction of the Prime Minister, the Ministry of Finance issued a letter of guarantee for 2 loans, including MIGA insured loans worth 250 million USD of the Company. BT20 Cuu Long shares to implement National Highway 20 project and a $ 510 million NEXI insurance loan of Cam Lo – Tuy Loan BT Investment Co., Ltd to implement the project of La Son – Tuy Loan section.
Currently, the Ministry of Finance has applied to advance capital from the Debt Repayment Accumulation Fund to the Ministry of Transport to pay debts due from March 2018 to March 2020 of government-guaranteed loans for La Son – Tuy Loan project and QL20 project with the total amount of 192.46 million USD.
Up to now, the Ministry of Transport has returned to the Debt Repayment Accumulation Fund 2 times (December 31, 2019 and March 31, 2020) with the total amount of $ 191.71 million and still has to repay. The Debt Repayment Accumulation Fund is $ 746,314, $ 26 (the advance to pay interest on late payment penalty).
Regarding the debt repayment period in September, the Ministry of Finance said that the Prime Minister has Decision No. 272/2020 on assigning the medium-term plan of the mid-term budget capital for the 2016-2020 period from the general provision for investment plans on medium-term projects, in which La Son – Tuy Loan project and Highway 20 project were assigned the amount of 3,112 billion VND.
However, because the two BT projects mentioned above have not been completed and handed over to the competent state agency, the Ministry of Transport, as a basis for payment from the capital plan assigned by the competent authority (the project La Son – Tuy Loan is constructing Hoa Lien intersection and some related items; Highway 20 project is constructing the additional item of intersection other than Dau Giay level and building a new bypass project of Bao Loc city).
Therefore, to be able to disburse the debt repayment, the Ministry of Transport needs to be issued a resolution by the Government to allow payment of the plan which has been assigned by the competent authority to the La Son – Tuy Loan project and Highway 20 project when the work is not completed and handed over to the State (payment according to the actual completed volume that has been accepted and approved by competent state agencies).
Up to now, the Government has not given any direction on the payment of the capital plan assigned by competent authorities when the work is not completed and handed over to the State while the loan repayment schedule has been close to the Government. Government guarantee for the 2 above projects.
Therefore, the Ministry of Finance has reported to the Prime Minister to allow the advance of capital from the Debt Repayment Accumulation Fund to timely repay the September term for 2 projects as the Prime Minister’s previous direction. The Ministry of Transport will carry out procedures to repay the advance from the Debt Repayment Accumulation Fund in accordance with regulations.
Source: ndh.vn – Translated by fintel.vn