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Circular No. 96/1998/tt-Btc: Guidelines For The Management And Use Of The Mixed Credit Loan Incentives Of Denmark

Original Language Title: Thông tư 96/1998/TT-BTC: Hướng dẫn việc quản lý và sử dụng vốn vay tín dụng hỗn hợp ưu đãi của Đan Mạch

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Circulars on the management and use of the mixed credit loan incentives of Denmark pursuant to Decree 87/CP dated 5 August 1997 the Government issued regulations and use of the sources of official development assistance (ODA).
Based on the framework agreement on the technical mixture credit level between the Government of Denmark and the Government of Vietnam on 30/5/1995 worth 50 million USD (hereinafter referred to as the agreement).
Basing the memorandum signed on 12/4/1998 between the Ministry of planning and investment and the Danish Ministry of Foreign Affairs (hereinafter referred to as the DANIDA) about the new conditions of the Danish mixed credit for Vietnam (hereinafter referred to as the minutes).
Implementation of the decision of the Prime Minister on domestic financial mechanism applicable to credit project in Denmark in letter No. 666/CP-QHQT on 17/6/1998 of the Government.
The Ministry of Finance shall guide the management and use of credit capital of the Denmark incentives mixture according to the text on the following: a. GENERAL RULES: 1. capital the Danish mixed credit are loans that the Government's foreign debt. So, the entire loans money be accounted into the State budget. The Ministry of finance is responsible for the foreign debt when due (including the original debt and the other accounts payable).
2. The owner is responsible for using the correct capital purposes, in accordance with the conditions specified in the agreements signed with Denmark and returned to the State budget (for projects in the loan area) as stipulated in the loan contract signed back with the total development investment Bureau.
3. The total development investment Bureau is responsible for implementing the management of lending and debt collection for project owners and enjoy free loan credit state capital again under current rules.
4. The Ministry of finance will coordinate with the State Bank to specify an appropriate commercial bank to make foreign transactions for the project.
B. SPECIFIC RULES: i. the PROJECT STEPS: 1. With respect to the project has been approved by the Government put on the Danish proposal category sponsorship, the investor to conduct feasibility study reports and browser feasibility study report as stipulated in Decree No. 42/CP 16/7/1996 and Decree 92/CP dated 23/8/1997 of the Government.
All these projects have been included in the approved Government funded items must be approved on the basis of the DANIDA evaluation feasibility study report prepared by the owner of the face: financial analysis, social issues, the environment and other issues. Final approval of the project by DANIDA will be based on feasibility report and commercial contract has been approved by the Vietnam. The owner is responsible for sending the feasibility study report of the project for the Ministry of planning and investment to DANIDA proposal evaluation and approval.
2. After the investment decision of the authorized owner conduct tenders according to the current rules of the Government. Base bidding results are approved by the authority, conducting negotiations, signed commercial contracts with suppliers.
In the negotiating process, signed commercial contracts the owner should make the rules of Denmark as follows: with regard to the industrial project funded by Denmark, only a maximum of 85% of the value of commercial contracts should be 15% of the value of the rest of the commercial contract the client must manually deployed capital. The other fields in the project can be financed up to 100% of the value of the commercial contract.
In commercial contracts should specify the service provider Bank Denmark granted the bail deposit payment (Down payment Bank Guarantee) and guarantee the implementation of the contract (Performance Bond/Guarantee).
The owner must send a copy of the approved commercial contracts along with the feasibility study reports, reports on the preparation of capital and investment preparation attach suggested the Ministry of Finance has asked the Danish official sponsor for the project.
3. The Ministry of Finance (foreign financial Services) on the basis of the proposal of the investor will sign the loan agreement is specific for each project (hereinafter referred to as the agreement) with the credit institution appointed by the Government of Denmark.
4. after receiving the notice of Ministry of finance regarding the completed the prescribed procedure to withdraw capital, commercial banks assign responsibility to guide the owner to perform the procedure for opening letters of credit (L/C) and exit according to the provisions of the loan agreement for each project signed (below referred to as the loan agreement).
 
II. FINANCIAL MECHANISM based on the projects to be approved by the Prime Minister under category I (No. 1443/QHQT 30/3/1996 of the Government) and the batch category II (No. 4659/QHQT on 18/9/1997 of Government) were included in annex I and II of this circular;
Financial mechanism for the projects in the list above are made by the Prime Minister's decision in no. 666/CP-QHQT on 17/6/1998, namely: 1. The project is State budget allocations include: project of the equipment digital Center tv radio and tv Thanh Hoa; water supply projects in some towns of the mountainous district of Nghe An province; town water supply project in mountainous district of Ninh Binh province View Grapes.
2. The projects in the loan area are applied to the loan conditions as follows: a. the loan term by the Danish term for Vietnam with loans (a maximum of 8 years for industrial projects and 10 years for infrastructure projects, environment , social).
b. variable interest loans back: for projects in category I and II were the Prime browser are as follows: The project is the loan back with interest of 1% per year (this was again lending rate including fees for loans of a total development investment Bureau is 0.2% per year and the fees outside the country under the provisions of the loan agreement by the Ministry of Finance transfer paid directly to the foreign side) include: The fleet construction projects off-shore fishing.
Water supply project in the town: Shanxi (category I), Government (Henan), Tan An (), Vinh (Vinh Phuc), Scallops (Ninh Binh) and the project to renovate the old piping systems for water supply (phase II portfolio).
The project was the loan back with interest at 2% per year (this was again lending rate including fees for loans of a total development investment Bureau is 0.2% per year and the fees outside the country under the provisions of the loan agreement by the Finance Ministry to transfer paid directly to the foreign side) including : the project upgrade seafood processing plants.
The project stores airport lighting equipment.
The project of agricultural food products, food processing.
Interest is paid 6 months according to the specific regulations in the credit contract signed between the investor and the total development investment Bureau (on 30 and 31/12 or 31/3 and 16/9). If deferred the owner must bear the penalty interest rates slowly charged as prescribed in the credit contract, but do not be slow to pay penalty interest rate lower than stipulated in the loan agreement.
c. with regard to the projects continue to be the Prime Minister put on the category browsing in the coming time, the Finance Ministry will process the Government loan back condition based on the nature and characteristics of each project and inform the owner made.
4. Vouchers to sign the deed to receive debt among investors with Total development investment Bureau is the corresponding invoice by the person who provided notice of debt paper in Denmark and Danish side. The time the investor receive the debt with the Ministry of Finance (investment development Directorate) is the time of the debit for the Danish Ministry of finance. Amount of the project received the debt is the amount of the debit for the Danish Ministry of finance.

5. The layout is inherently bad for the project made under the provisions of article 23 section 2 regulations and use of official development assistance resources attached to Decree No. 87/CP on 5/8/1997 of the Government, specifically the following: with respect to the project are State budget allocated : reciprocal capital due to State budget plan assurance reciprocal capital every year.
With regard to the Danish capital to back the loan project of the Government: the owner is responsible for self-reciprocal capital layout to ensure the progress of the project.
Reciprocal stake in foreign currency for the project (deposit, money shops devices from third countries, construction and installation costs, ...) can be borrowed from the loan capital of the Nordic Investment Bank (NIB) under loan agreements for program funding for small projects signed on 4/5/1998. Under this agreement, specific loan time will by NIB decided on basis of proposal of the Vietnam through the Finance Ministry but must not exceed 20 years, interest rate LIBOR + Margin.
NIB loans section shall ensure the following requirements: the minimum loan equivalent of $500,000, the maximum loan of 5 million but not exceeding 50% of the total cost of the project. To be able to use this capital, the investor should have a formal proposal submitted to the Ministry of planning and investment (Foreign Service) and the Ministry of Finance (Financial Services PR) attached to this loan using the content for inclusion in the list of specific loan negotiations with the NIB.
 
C. IMPLEMENTATION 1. Six months once the owner has a responsibility to report the Finance Ministry (General Directorate of investment and development, foreign financial Service), Ministry of planning and investment and the governing body about the situation to receive, use and repayment of the loan.
2. This circular have effect after 15 days from the date of signing and apply uniformly to all projects using the Danish mixed credit will sign the loan agreement the project from now onwards.
2 the project was implemented as project bien Hoa coffee processing and seafood processing project Mau still follow guidelines in circular No. 34-TC/TCĐN on 18/6/1997 of the Ministry of finance.
In the process, if there are problems the unit need timely reflection of the Ministry of finance to consider the settlement.
 
Annex I LIST of PROJECTS that USE the DANISH CREDIT PHASE I (approved in no. 1443/QHQT 30/3/1996 of the Government) STT unit project Name amount (USD) Note 1 water level some town mountain town in Nghe An PEOPLE'S COMMITTEE of Nghe An province 2.0 2 water supply town of Shanxi PROVINCIAL PEOPLE'S COMMITTEE of Ha Tay 3.0 3 construction fleet fishing the Thanh Hoa PROVINCIAL PEOPLE'S COMMITTEE of fisheries Company 2.0 4 technological innovation of State-owned biểnkhơi catch fishing the mouth of Nghe An PROVINCIAL PEOPLE'S Association 1.5 5 investment in development of the fishing fleet of the Agriculture Department RURAL DEVELOPMENT HO CHI MINH CITY'S PEOPLE COMMITTEE 1.0 6 construction of off-shore fishing fleet the Fisheries Department of the PEOPLE'S COMMITTEE of the Pacific lighting equipment 7 1.5 (3 Cat Bi airport Phu Bai, Vinh, VIETNAM HKDD 3.0) 8 upgrade frozen seafood factory in HO CHI MINH CITY PEOPLE'S COMMITTEE of Haiphong F42 1.5 9 innovative seafood processing equipment ham Tan Binh Thuan PEOPLE COMMITTEE 10 2.0 upgrade frozen seafood plants F22 Ben Tre PEOPLE'S COMMITTEE 0.8 11 upgrade frozen seafood plants Free Phú (replace project needs) the PEOPLE'S COMMITTEE of HO CHI MINH CITY 1.0 12 aquatic plant upgrade Contract HO CHI MINH CITY PEOPLE'S COMMITTEE of Hoi 1.5 13 upgrade frozen plants IMPORT-EXPORT Company of Ha Tinh PEOPLE'S COMMITTEE Ha Tinh fisheries 1.5 upgrade 14 processing plants IMPORT-EXPORT Company of southern fisheries F48 PROVINCIAL PEOPLE'S COMMITTEE of southern 0.8 15 upgrade Mau PPC factory Minh Hai 2.0 follow circular 34-TC/TCĐN on 18/6/97 16 upgrade coffee processing plant of bien Hoa Real 1.5 NNPTNT Sets patio circular 34-TC/TCĐN on 18/6/97 17 upgrade milk processing plants 3.0 NNPTNT 18 Sets Unified processing equipment investment for feed (instead of poultry processing projects) set NNPTNT 1.5:31.1 APPENDIX II LISTING PROJECTS USING DANISH CREDIT PHASE II (approved in no. 4659/QHQT on 18/9/1997 of Government) project Name project governing body the loan amount (million us dollars) notes 1. Upgrading the water supply system in the town of Phu LY HA Nam PEOPLE'S COMMITTEE up 15,000 m3/day Henan 5.0 2. Phu Tho town water supply capacity of 6,000 m3/day PEOPLE'S COMMITTEE of Phu Tho 3.0 3. Renovating the old piping systems for water supply Hanoi, Hanoi people's Committee 5.0 4. Water supply the town Tan An, Long An, Long An PEOPLE'S COMMITTEE-5.0 5. Water supply the town of Vinh yen of Vinh Phuc of Vinh Phuc PROVINCIAL PEOPLE'S COMMITTEE-5.0 6. Water supply town of Bac Bac PPC 4.0 7. Water supply to the town, the mountains of Ninh Binh, Ninh Binh PROVINCIAL PEOPLE'S COMMITTEE in project do apply different mechanisms-Tam town water supply water supply-1.73 Messages the town district of mountainous Grape Related 1.27 8. Equipped with digital television center HIGH SCHOOL radio station Thanh Hoa Thanh Hoa PROVINCIAL PEOPLE'S COMMITTEE 5.0 total: 35.0