Interest Rates for Mobilizing Investment Capital in Implementing PPP Projects
According to Article 14 of Circular 88/2018/TT-BTC, the regulation on loan interest mobilized for investment in implementing PPP projects is as follows:
- Loan interest mobilized for investment:
- The loan interest mobilized for investment is calculated in the financial plan of the PPP project based on the committed loan amount and the schedule for mobilizing funding sources in the project contract; the interest during the construction period is included in the total investment amount of the PPP project.
- The loan interest mobilization applies only to the portion of capital that the investor is required to borrow; interest is not calculated on the equity portion committed by the investor in the project contract.
- The interest calculation period starts from the disbursement of the first loan and does not exceed the implementation period of the project as stipulated in the project contract.
- The authority to approve the Pre-feasibility Study Report, Feasibility Study Report decides and is responsible for the loan interest rates, principles, and conditions for adjusting loan interest rates in the financial plan of the PPP project based on reference but not exceeding the following interest rates:
- The average of the medium and long-term loan interest rates of three commercial banks: Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Joint Stock Commercial Bank for Industry and Trade of Vietnam (Vietinbank);
- The prevalent medium and long-term loan interest rates of the commercial banking system as announced by the State Bank of Vietnam on the portal of the State Bank of Vietnam (if any);
- Loan interest rates of similar projects (if any);
- The loan interest rates stipulated in Points a and b of this Clause are determined at the nearest time within 03 months before the approval of the Pre-feasibility Study Report and the Feasibility Study Report.
- In the case of appointing an investor: the state authority with competent authority shall submit to the competent authority for approval of the loan interest rate level in the financial plan of the PPP project, which shall not exceed the lowest loan interest rate stipulated in Clause 2 of this Article.
The above is the regulation on loan interest mobilized for investment in the implementation of PPP projects.
Sincerely!
