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Ba Ria - Vung Tau development fund comes on stream this month
Ba Ria-Vung Tau Development Investment Fund (BVDIF) is slated for inauguration in March 2014. This is a State financial institution and will perform the tasks of financial investment and socio-economic infrastructure development in the province. The government of Ba Ria-Vung Tau on November 11, 2013 decided to establish BVDIF, which is a State financial institution under the management of the province, operating as a policy bank, a financial autonomy and non-profit institution which conserves and develops capital, manage costs and risks on its own, with charter capital of VND500 billion granted by the provincial budget in three years, from 2014 to 2016. - Capital sources: Apart from the provincial budget, BVDIF will mobilize medium- and long-term funds from organizations and individuals at home and abroad in accordance with laws. - Borrowers: BVDIF will lend to those projects on the list of preferential socio-economic infrastructure projects issued by the provincial government. - Lending rates: Every year, or in each particular period, the government of Ba Ria-Vung Tau will decide the minimum lending rate, according to which BVDIF will determine the rate for each specific project not lower than the minimum rate set by the provincial government. - Investment: BVDIF is allowed to make direct investments in various forms such as business cooperation contract (BCC), build-operate-transfer (BOT) build-transfer (BT), public-private partnership (PPP) and other forms in accordance with the laws on investment. Also, BVDIF can contribute capital to set up joint stock companies and limited liability companies which will directly invest in the socio-economic infrastructure projects on the list issued by the government of Ba Ria-Vung Tau. In addition, BVDIF is entitled to entrusted investment, debt collection and allocation of investment capital. It can issue local government bonds to raise funds for the local budget as authorized by the provincial government. BVDIF will officially come on stream in March 2014. It will be a major fund raising channel for development investment and construction of socio-economic infrastructure projects in the province.
Source: The Saigon Times Weekly 12-’14 (1173) March 22 2014
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