Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) has announced some information as follows: 1. BOT contract of extending Hanoi Highway:
* On November 26, 2009, CII signed a contract of contribution, trade and project transfer with Transportation Department of HCMC.
* Total investment value to expand Hanoi Highway (Excluded interest in the construction time, expenses of using capital and VAT) estimated nearly VND2,288 billion. Starting point of the project connects the construction project of Saigon II Bridge (At the crossroads of Hanoi Highway and Quoc Huong St. – Km0+300) at Dist. 2, HCMC. End point connects the construction project of Dong Nai New Bridge at the crossroads of Hanoi Highway and 743 Provincial Road at Di An Town, Binh Duong Province. Total route length is 15.7km.
* CII will deploy the fee collection to repay BOT capital after finishing the contract of transferring management right on Hanoi Highway (Repay investment capital in Rach Chiec Bridge).
2. Credit agreement of management transfer and fee collection project on Hanoi Highway:
* A credit agreement of management transfer and fee collection project on Hanoi Highway (To repay invested capital in Rach Chiec Bridge) is expected to be signed between Joint Stock Commercial Bank for Foreign Trade of Vietnam – HCMC. Branch, Vietnam Export Import Commercial Joint Stock Bank – HCMC. Branch and CII on December 03, 2009.
* Total credit bankroll is VND873 billion in 12 years with 5 years of grace period as from the first disbursement date. The loan interest is equal to 2.5%/year of interest of 12-month saving account.
3. The State Bank of Vietnam’s decision of increase the prime rate on VND:
* On November 25, 2009, Governor of the State Bank of Vietnam decided to increase the prime rate on VND from 7% to 8%/year. Therefore, the ceiling rate of loan interest is 12%/year replaced 10.5%/year.
* CII has invested primarily in BOT projects of bridges and roads. And the loan interest based on the reality loan interest of credit agreement. Therefore, increasing loan interest will not affect to CII’s organizations.