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Trung Luong - My Thuan project:

9 months of “lightning speed” after 9 years of stagnation

(VLR) When you are reading this Spring Special Edition, it is also marked the full 9-month period since Deo Ca Group accepted the invitation to participate in the management, administration, and investment ownership of Trung Luong - My Thuan BOT investors. It is an important milestone, since the 9-year stagnation project has been overcome and the project can finally be completed in 2021.

Taking responsibility

In April 2019, Deo Ca Group started over by finally taking a series of steps to restart the project. In the spirit of “To clear the road, we must clear of our responsibility first”. On April 19, 2019, in My Tho city, the Ministry of Transport, Tien Giang Province People’s Committee and Trung Luong - My Thuan BOT Company officially sat down together for the first time to view the project’s situation and discuss ways to solve these problems to complete the construction of Trung Luong - My Thuan Expressway in the most convenient way.

Since then, Tien Giang province has accelerated the site clearance phase after clearing 50.51km, up to 99% in total. On the next day (April 20), at the Conference of dismantling and promoting Trung Luong - My Thuan expressway project, after showing a series of difficulties, investor’s representative made more specific steps in order to accelerate the project.

“If any contractor fails to ensure the quality and schedule, they will be replaced”, said Mr. Ho Minh Hoang, Chairman of Trung Luong - My Thuan BOT firm.

Specific solutions were proposed by the Conference to compensate for the delayed progress, which

The total committed loan capital of banks for Trung Luong - My Thuan expressway construction investment project is 6,686 billion VND, of which, VietinBank: 3,300 billion VND, BIDV: 1,500 billion VND, AgriBank: 1,000 billion VND, VPBank: 886 billion VND.

is the basis for adjusting the total implementation schedule. Investors believe that the source of the slow progress is the organization of project implementation. If all parties recognize their own weaknesses, since many things are not guaranteed to be implemented according to normal practices, thereby, acknowledging it and ready to solve these problems together.

At the Conference, all of the representatives of the Ministry of Transport in Tien Giang province, investors and banks funded capital showed the spirit of “realizing problems and not blaming each other” with true intention.

Huge workload is no more

The representative of the investor said that the legal procedures and project documents were completed by the Ministry of Transport and Tien Giang province and have been basically completed. The project has also been reviewed twice by the State Audit, which is for eliminating weak investors. The General Meeting of Shareholders also successfully organized and rebuilt the project’s operating system. The State budget capital has been allocated to Tien Giang province of 1,390 billion VND out of 2,186 billion VND. Tien Giang province then disbursed it immediately, and the rest will be disburse in the future.

Under pressure of schedule when time is running out, investors and contractors have exhausted their capital to have a quality control test of the soft ground under the construction right from the beginning. To overcome this problem, when the budget capital has started pouring in, the plans for material fluctuations have been calculated, arranged to increase manpower, construction equipment, swapping positions, installing surveillance camera systems to control the project management processes more closely, repel frauds with the goal of speeding up but not letting negative losses occur.

Open door of opportunities for completion in 2021

On December 16, 2019 in Tien Giang province, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and syndicated banks officially signed credit contracts and documents for the project. The syndicated financing of banks aims to materialize the credit capital source in the

The signing ceremony of credit contracts and documents for the project is an important milestone. This is a testament to the cohesion, smooth coordination between parties with maximum effort towards the success of the project, determination to follow the directions of the Party, National Assembly, Government and meet the expectations of 20 million people in the Mekong Delta.

Mr. Nguyen Tan Dong, General Director BOT Trung Luong - My Thuan Joint Stock

capital structure of the approved total investment.

Since the new financial plan was issued in accordance with Decision No. 2463/QD- People’s Committee dated August 2, 2019, VietinBank continues to be the focal point, together with BIDV, Agribank and VPBank to reevaluate and complete the general review report from November 18, 2019, towards the completion of the remaining stages in December 2019 under the credit granting process in accordance with the capacity and conditions of each bank.

Mr. Tran Minh Binh, Member of the Board of Directors, General Director of VietinBank said: “Understanding the importance of this highway, VietinBank approached and assessed the project at an early stage and actively take part in as the focal bank and invites credit institutions such as BIDV, Agribank and VPBank, to participate in the appraisal and provision of credit capital on the basis of current regulations, to sign a credit contract for syndicated loan for the project in 2018. Prior to the fundamental changes of the project in 2019, the State Bank of Vietnam had guidance for 4 banks to closely follow the project, accompany the enterprises and Tien Giang People’s Committee in the process of rebuilding the financial plan. At the same time, they were regularly working and discussing with the project enterprises and the related parties to complete the overall appraisal report of being both consistent with the project’s content, while ensuring the capital supply for the construction progress in accordance with the regulations and processes of the State Bank and relevant laws.

With this credit contract and documents, the investor said that they will strictly control the necessary legal procedures for Tien Giang province and its parties to avoid signing without disbursing capital which will affect the project badly.

When we return to our homeland and reunite with our family and welcome a New Year to come, the bidding packages of the Trung Luong - My Thuan project will still rumble with construction sound. In this New Year, the project will not rest with 3 shifts/day all for the purpose of 2020 open passage and 2021 completed.

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AUD17,464.9117,641.3218,194.39
EUR27,238.0927,513.2228,661.04
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