Although VND1.39 trillion in State capital has been disbursed for the Trung Luong-My Thuan expressway, bank loans for the project remain unavailable, heard attendees at a press briefing in Tien Giang Province on December 4.
Tran Van Bon, director of the provincial Transport Department, stated that the Trung Luong-My Thuan expressway requires a total investment of some VND12.7 trillion after the adjustment, with VND10.5 trillion funded from the investor’s equity and bank loans.
In the financial plan for the project, capital sourced from banks was expected to account for over 60 percent of the total investment, at VND7.7 trillion, remarked Tran Van The, financial deputy general director of BOT Trung Luong-My Thuan JSC.
However, The noted that the banks financing the project had reached a consensus to offer loans worth VND6.7 trillion, making up only 53 percent of the total, VND1 trillion less than proposed in the financial plan.
“As such, the firm must mobilise an additional VND1 trillion,” The stressed.
If the investor meets multiple requirements, involving the disbursement of State capital and creating a suitable plan for ticket prices and fare hikes, the banks will provide credit, The explained.
“We, however, have yet to learn when the issuance of credit for the project will be done,” he added.
He proposed the Tien Giang government alert the government and ministries of the banks’ failure to offer sufficient loans for the project, to allow the investor to issue corporate bonds to mobilise capital for the project.
The day earlier, on December 3, nearly VND2.2 trillion in State capital, pledged by the government for the Trung Luong-My Thuan expressway, was sent to the Mekong Delta Province of Tien Giang, with VND1.39 trillion disbursed.
At the press conference, Pham Anh Tuan, vice chair of Tien Giang, stated that apart from State capital, bank loans are needed, to ensure the project is put into service as scheduled on December 31 next year.
“Although the province has actively held meetings with the central bank and commercial banks to discuss capital sources, bank loans have remained a major bottleneck for the project,” Tuan said.
“The province will help the developer of the project to remove this bottleneck on credit and ensure the project runs on schedule,” he added.
