The Hanoi People’s Committee has proposed to collect a re-loan of $98.35 million from the government to help finish and put into operation the long-delayed Cat Linh-Hadong metro line.
The metro line was approved in 2008 with the total investment capital of VND18 trillion ($782.6 million), $669.62 million of which come from loans from China with the remainder being reciprocal capital.
The $577.1 million expenditure for the construction will be allocated by the government from the loans taken up from China.
Meanwhile, the $92.52 million expenditure to put the metro line into opertaion and maintain operations will be financed by reloaning the $669.62 million from China.
In 2016, the expenditure for operating the metro line was adjusted upwards to $98.35 million from the initial $92.52 million.
The government assigned the Ministry of Transport (MoT) to authorise the managing board of the project to take up the reloan so that it can disburse capital for component projects to start operations.
During the construction process, the MoT will be in charge of arranging reciprocal capital to pay the debt and relevant expenses until the project is handed over to the operator.
Besides, the Hanoi People’s Committee will receive the re-loan from the MoT and will have to shoulder all obligations of a reborrower and pay the debt worth $98.35 million to the MoT after the construction is finished and the project is handed over to this authority.
Thus, the total re-loan for Cat Linh-Hadong is $98.35 million and the interest is estimated at $30,000. The deadline for the payment of both the original debt and the interest is September 2032.
The deadlines for paying the installments of the original debt of $41 million and interest are January 21 and July 21 every year.
The deadlines for the $9.9 million and other $47 million original debt and interest will be March 21 and September 21 every year.
The interest makes up 4 per cent of the re-loan. In case the borrower misses the deadlines, it will be issued a fine worth 150 per cent of the interest level, based on the number of days the deadline is missed. VIR
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