Hanoi-Hai Phong Expressway investor grieves over lack of support

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Báo Dân Trí English - 2 week(s) ago 1 readings

The investor in the Hanoi-Hai Phong Expressway, the Vietnam Infrastructure Development and Finance Investment JSC (VIDIFI), said they were incurring huge losses while the government support package is no where to be seen.

The investor in the Hanoi-Hai Phong Expressway, the Vietnam Infrastructure Development and Finance Investment JSC (VIDIFI), said they were incurring huge losses while the government support package is no where to be seen.

Hanoi-Hai Phong Expressway

VIDIFI has submitted several complaints to the prime minister ahead of a upcoming conference between the prime minister and firms that will be held in May.

VIDIFI hopes that the authorities will help restructuring its foreign loans of USD300m, in which USD200m are from the Export-Import Bank of Korea and USD100m from the German KfW Development Bank, and provide the approved VND4trn (USD176m) support package for ground clearance.

In November 2016, the Ministry of Finance suggested that VIDIFI would only need to pay the interest while the loan would be paid by the state budget via the Ministry of Transport. However, the Ministry of Planning and Investment didn't agree, saying that many agencies were also having difficulties with foreign loans.

According to VIDIFI, most of the financial indicators are aligned with what was approved in financial plan by the prime minister. However, they haven't received the support package for ground clearance.

VIDIFI said their finance balance will be ruined if they don't have support in 2016-2020 period. Currently, they are collecting VND5.5bn (USD242,000) of toll charge a day but have to pay VND8bn in interest for banks. Even the Vietnam Development Bank will also be affected as most of its loans was given to VIDIFI.

VIDIFI had to borrow loans from Vietnam Development Bank to keep up with the schedule while the government support package hadn't arrived.

VIDIFI said several investors from India and consultancy firms from Australia had shown interests in the project. If the state support package do not arrive soon, not only it will affect the project but also the goal to attract more foreign firms to invest in the infrastructure, especially the north-south highway.

The 105-km expressway is a build, operate and transfer project and has a total investment of VND45.5trn (USD2bn). Last year, VIDIFI reported that they earned VND1.4trn but reported a pre-tax loss of VND1.7trn.

Hanoi-Haiphong Expressway is the most modern in Vietnam yet. It runs through four provinces and city including Hanoi, Hung Yen, Hai Duong and Hai Phong provinces. The toll charge is VND190,000 for a car with less than nine seats.

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