On December 7, 2021 in Hanoi, the Investor consortium of Deo Ca – 194 and Cam Lam – Vinh Hao Project enterprise signed credit contract and business cooperation contract (BCC) for Cam Lam – Vinh Hao BOT investment project.

Cam Lam – Vinh Hao expressway project has a total investment of about 8,925 billion VND. In which, the State capital participating in the project is about 5,139 billion VND; Equity is 1030 billion VND; Tien Phong Commercial Joint Stock Bank (TPBank) commits to grant credit with a limit of 1,700 billion VND; Deo Ca Group Joint Stock Company and Deo Ca Transport Infrastructure Investment Joint Stock Company (Stock code HHV) committed to invest the rest of 1,056 billion VND through BCC contracts.

The capital structure of Cam Lam – Vinh Hao project

In this project, the investor has applied 3P model in mobilizing capital, so far the capital arrangement has been completed, and fully prepared resources to implement the project in accordance with the signed contract.

Thus, although having the longest BOT contract negotiation time among the three PPP North-South expressway projects, Cam Lam – Vinh Hao is considered a “bright spot” when completing capital mobilizing earliest. The other two projects, Dien Chau – Bai Vot and Nha Trang – Cam Lam, have not yet been able to remove the capital bottleneck and are in danger of canceling the BOT contract due to the credit contract being overdue.

“After researching on the financing of Cam Lam – Vinh Hao Expressway Project, we found that the project is highly feasible. Besides, TPBank also highly appreciates the capability of the Investor of Deo Ca Group when successfully completing a series of projects of Deo Ca tunnel, Cu Mong tunnel, Hai Van tunnel, Bac Giang – Lang Son Expressways and especially Trung Luong – My Thuan Project. We believe that with the financial potential, the experience of the Investor and the support of the Ministry of Transport, the project will be completed on schedule, at the same time, the 3P model of Deo Ca is the best choice today”, Mr. Dinh Tien Duc – Director of Thang Long Branch – Representative of the sponsoring bank affirmed.

With the capacity and reputation of TPBank and the investor consortium led by Deo Ca Group, the great confidence to bring about the success of the project is opened up. The signing of business cooperation contracts (BCC) shows the diversity of capital sources, establishing benefits for shareholders.

Participating in the signing ceremony were also financial institutions such as Lotus Capital. The initial success of the project mobilization method has confirmed the right direction and affirmed the prestige and capacity of Deo Ca Group, creating confidence for the Government, banks and more than 30,000 shareholders supported HHV’s investment strategy (99.97% of shareholders agreed).

Speaking at the signing ceremony, Mr. Le Kim Thanh, Director of the Public-Private Partnership Department (MOT), said that investors participating in 3 PPP North-South expressway projects have to face many difficulties, in which the key is must arrange capital and sign credit contract within 6 months from the date of signing the BOT contract. “In the 3 projects, we were very surprised and happy by Cam Lam – Vinh Hao project of the consortium led by Deo Ca. In addition to reducing the price by nearly 800 billion when confident in the ability to organize construction, this is also the first project to sign credit contract and BCC contracts, marking the transition from a credit commitment to a credit contract, fully meeting the conditions for project implementation. The Ministry of Transport believes in the success of the project”.

Cao tốc Cam Lâm – Vĩnh Hảo là dự án đầu tiên ký được hợp đồng tín dụng và hợp đồng BCC

Previously, on July 31, 2021, the Ministry of Transport and the Investor signed BOT contract for this project. The contract negotiation took longer than other projects because the two sides have gone in detail to remove the problems such as capital mobilization mechanism, responsibility for disbursement of State capital. These are all lessons drawn from the practical experience of large PPP projects in recent times.

Mr. Phan Van Thang – General Director of Cam Lam – Vinh Hao Expressway Joint Stock Company shared: “Over the past time, despite many impacts of the Covid-19 epidemic, but thanks to the active support of localities where the project is located and the efforts of investors and project enterprises, up to now, the project management board has mobilized more than 1,000 officials and workers, more than 300 machines and equipment; material production zones; the operator’s house, office area, and staff accommodation area have also been fully prepared to serve the construction of the main items of the project”.

TT