Connect with us

Business

Finance ministry concerned about costly investment in Long Thanh airport

Published

2 years ago

on

An artist’s impression of Long Thanh International Airport. The Ministry of Finance has expressed concern over the large amount of capital being poured into the Long Thanh International Airport project – PHOTO: LE ANH

HCMC – The Ministry of Finance has expressed concern over the large amount of capital being poured into the Long Thanh International Airport project, stating that the ratio of US$188 million per one million passengers is very high, according to Tuoi Tre Online newspaper.

The first phase of the project will see an investment of some VND109 trillion or around US$4.66 billion, with a capacity of 25 million passengers a year. Therefore, the ratio of US$188 million per one million passengers is high compared with airports on the same scale across the world, it said in a document recently sent to the Ministry of Planning and Investment.

According to the project appraisal unit, materials, equipment and building technologies chosen for the first phase are available in the domestic market, environmentally friendly and mobilizable.

Therefore, the Finance Ministry suggested the Ministry of Planning and Investment and the appraisal unit clarify the cause of the costly investment plan in comparison with similar projects worldwide as well as the advantages and distinctions of the Long Thanh project.

As planned, the mammoth project will be divided into four component projects, including offices of administering agencies such as customs, public security and quarantine that will be invested in by the State budget. Meanwhile, the Vietnam Air Traffic Management Corporation will invest in air management facilities and the Airports Corporation of Vietnam (ACV) will cover the expenses of key infrastructure works.

Last, service works such as cargo terminals, logistics warehouses, a fuel pipe system and an aircraft maintenance zone will be put up for public bidding to attract private investors.

Besides this, the Ministry of Finance also cast doubts on the capability of the investors.

According to the ministry, the assigning of ACV as the investor of important works of the airport project is completely founded, meeting the requirements of the National Assembly and the Government and Vietnam’s laws.

However, the works are seeing a combined investment of around VND93 trillion, including VND36.1 trillion of the ACV’s available fund and VND56.9 trillion worth of credits without a government guarantee. Therefore, it is necessary to review its feasibility and financial safety during the construction process.

Of the ACV’s available fund, its cash, after the deduction of dividend, is around VND29.2 trillion and its accumulative cash in the 2021-2025 period is projected at around VND6.8 trillion. For the remaining over VND56.9 trillion, the firm will take out loans from local and international banks and via export credit contracts.

However, ACV now incurs a payable debt of some VND21.4 trillion, including VND6.5 trillion in short-term debts.

The enterprise has been assigned to build or upgrade 21 of the 22 airports and terminals under its management. ACV is also seeking approval for many projects, such as the Dien Bien Airport worth over VND1.5 trillion, the Na San Airport worth nearly VND2.3 trillion, the expansion of the T2 terminal of Noi Bai International Airport at a cost of over VND4 trillion and the T3 terminal of the Tan Son Nhat International Airport with over VND11.4 trillion.

Source: https://english.thesaigontimes.vn/78969/finance-ministry-concerned-about-costly-investment-in-long-thanh-airport.html

Related Topics:

Business

UNIQLO to open in Binh Duong in spring/summer 2023

UNIQLO, the Japanese global apparel retailer, has announced its expansion in the southern province of Binh Duong, marking further growth for the brand’s presence in Viet Nam.

Published

7 hours ago

on

March 23, 2023

By

UNIQLO will begin recruiting local talent as it prepares to open its store in one of the region’s most exciting, high-growth economies.

With a strong GDP growth rate and located in the centre of the southern key economic region and next to HCM City, Binh Duong has become the industrial hub of the country with outstanding infrastructure.

UNIQLO’s store will open in AEON MALL Binh Duong Canary, one of the biggest malls with full utilities for different target audiences, especially families.

“Three years with three cities, 15 stores and UNIQLO Online is a remarkable journey for us thanks to the continued strong support from customers and local communities. Our entry into Binh Duong is the next exciting milestone for everyone at UNIQLO Vietnam. We look forward to introducing UNIQLO and our high quality, affordable LifeWear apparel in Binh Duong, and continue to make a positive contribution to the economy and communities where we operate,” said Osamu Ikezoe, General Director and Chief Operating Officer, UNIQLO Vietnam.

Source: Viet Nam News

Source: https://e.nhipcaudautu.vn/companies/uniqlo-to-open-in-binh-duong-in-springsummer-2023-3351265/

Continue Reading

Business

Renewable power investors seek PM’s help to quell fear of financial distress

Published

10 hours ago

on

March 23, 2023

By

Thirty-six renewable power investors have petitioned the prime minister to consider addressing pricing-related inadequacies in renewable power development that left 34 solar and wind power plants unable to sell their electricity to state-owned Vietnam Electricity Group (EVN).

These investors, in a petition recently sent to Vietnam’s Prime Minister Pham Minh Chinh, said that the impact of the COVID-19 pandemic resulted in 84 renewable power projects, with a total capacity of some 4,600 MW, lagging behind schedule to achieve commercial operation.

Among these, 34 projects, comprising 28 wind farms and six solar plants with a total capacity of more than 2,000 MW, are eligible to connect to the national power grid, but their investors have had to wait for a new pricing mechanism, which provides a foundation for renewable power investors and the national electricity buyer EVN to process power purchase agreements.

Six solar power projects have been waiting for a new pricing mechanism for more than 26 months, while 28 wind farms have been waiting for around 16 months. 

The total investment for these 34 projects, which have reached completion but have yet to connect with the national grid, amounts to an estimated VND85 billion (US$3.6 billion), with VND58 billion ($2.45 billion) borrowed from banks.

Therefore, the investors said they are facing a risk of financial woes, adding that corporate debts would rise and banks would find it hard to recover capital.

If the pricing mechanism for solar and wind power projects remains ineffective in the long run, the development of such projects could grind to a halt, thereby resulting in energy insecurity and a lower chance of fulfilling the government’s commitments on energy transformation and carbon dioxide emission reduction.

Direct power purchase mechanism proposed

To remove obstacles facing the 34 projects, renewable power investors proposed the government leader ask the Ministry of Industry and Trade to study and introduce a new pricing policy for them.

In addition, the investors suggested hiring independent consultants to work out a price bracket for renewable electricity, strictly following requirements of an advisory council and the Ministry of Finance to ensure transparency.

Also, the price bracket must be worked out based on the internal rate of return of 12 percent as stipulated in the Ministry of Industry and Trade’s Circular 15 issued on October 2, 2022.

As for power purchase contracts, the investors of these 34 wind and solar farms suggested keeping policies to encourage the development of renewable energy that the government had issued previously.

According to the investors, the pricing policy for the projects should remain in place for 20 years. They sought the prime minister’s nod for the conversion of prices into U.S. dollars or for regulations on slippage in power generation.

They also proposed the prime minister direct relevant ministries and agencies to complete and issue a direct power purchase mechanism which would allow renewable power investors to sell their electricity to those in need.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Thirty-six renewable power investors have petitioned the prime minister to consider addressing pricing-related inadequacies in renewable power development that left 34 solar and wind power plants unable to sell their electricity to state-owned Vietnam Electricity Group (EVN).

These investors, in a petition recently sent to Vietnam’s Prime Minister Pham Minh Chinh, said that the impact of the COVID-19 pandemic resulted in 84 renewable power projects, with a total capacity of some 4,600 MW, lagging behind schedule to achieve commercial operation.

Among these, 34 projects, comprising 28 wind farms and six solar plants with a total capacity of more than 2,000 MW, are eligible to connect to the national power grid, but their investors have had to wait for a new pricing mechanism, which provides a foundation for renewable power investors and the national electricity buyer EVN to process power purchase agreements.

Six solar power projects have been waiting for a new pricing mechanism for more than 26 months, while 28 wind farms have been waiting for around 16 months. 

The total investment for these 34 projects, which have reached completion but have yet to connect with the national grid, amounts to an estimated VND85 billion (US$3.6 billion), with VND58 billion ($2.45 billion) borrowed from banks.

Therefore, the investors said they are facing a risk of financial woes, adding that corporate debts would rise and banks would find it hard to recover capital.

If the pricing mechanism for solar and wind power projects remains ineffective in the long run, the development of such projects could grind to a halt, thereby resulting in energy insecurity and a lower chance of fulfilling the government’s commitments on energy transformation and carbon dioxide emission reduction.

Direct power purchase mechanism proposed

To remove obstacles facing the 34 projects, renewable power investors proposed the government leader ask the Ministry of Industry and Trade to study and introduce a new pricing policy for them.

In addition, the investors suggested hiring independent consultants to work out a price bracket for renewable electricity, strictly following requirements of an advisory council and the Ministry of Finance to ensure transparency.

Also, the price bracket must be worked out based on the internal rate of return of 12 percent as stipulated in the Ministry of Industry and Trade’s Circular 15 issued on October 2, 2022.

As for power purchase contracts, the investors of these 34 wind and solar farms suggested keeping policies to encourage the development of renewable energy that the government had issued previously.

According to the investors, the pricing policy for the projects should remain in place for 20 years. They sought the prime minister’s nod for the conversion of prices into U.S. dollars or for regulations on slippage in power generation.

They also proposed the prime minister direct relevant ministries and agencies to complete and issue a direct power purchase mechanism which would allow renewable power investors to sell their electricity to those in need.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230316/renewable-power-investors-seek-pms-help-to-quell-fear-of-financial-distress/72111.html

Continue Reading

Business

Novaland Appoints new Chief Executive Officer

According to the newest announcement, Mr. Dennis Ng Teck Yow takes the role of Chief Executive Officer of Novaland, replacing Mr. Nguyen Ngoc Huyen.

Published

20 hours ago

on

March 22, 2023

By

Mar 17th, 2023, No Va Land Investment Group Corporation (Novaland, ticker: NVL) issues a resolution No. 18/2023-NQ.HĐQT-NVLG of Board of Directors on appointing Mr. Dennis Ng Teck Yow as Chief Executive Officer of Novaland.

According to the newest announcement, Mr. Dennis Ng Teck Yow takes the role of Chief Executive Officer of Novaland, replacing Mr. Nguyen Ngoc Huyen. 

With nearly 30 years of experience, Mr. Dennis Ng Teck Yow has held a variety of senior leadership positions in business strategy development, project investment and development, team development, financial analysis and planning…at domestic and international real estate investment companies.

Currently under challenging circumstances, Novaland has been focusing on completing key projects, property handover to customers in accordance with timeline, flexible construction planning based on actual situations.

Novaland is negotiating with credit institutions to arrange sources of funding while concurrently strives to work with local authority to promptly solve and complete the legal process of projects. The Company keeps focused on completing economic urban areas which contributes in changing aspects and social security in the provinces where Novaland has invested. With all available resources, the company always strives to balance customers, investors and stakeholders’ interests.

NovaWorld Phan Thiet (Binh Thuan Province) with total scale of 1.000 hectares has been put phase 1 into operation
NovaWorld Phan Thiet (Binh Thuan Province) with total scale of 1.000 hectares has been put phase 1 into operation.

Mr. Dennis Ng Teck Yow holds an MBA Degree from Hull University, United Kingdom. He is also a member of various international associations of finance, banking and construction.He has years of experience in leading the implementation of commercial projects, residential projects, integrated urban areas, etc. following domestic and international standards. He has also held senior positions at international corporations across sectors such as business strategy development, human resource development, investment appraisal, finance, accounting…

Prior to his appointment as CEO of Novaland Group, Mr. Dennis Ng Teck Yow was the CEO of Gamuda Land LLC Vietnam.

Source: https://e.nhipcaudautu.vn/companies/novaland-appoints-new-chief-executive-officer-3351279/

Continue Reading

Trending