On August 6th, a credit contract for a build-operate-transfer (BOT) project to upgrade the National Highway 1A from Thanh Hoa province’s Nghi Son district to Nghe An province’s Cau Giat town was signed in Hanoi between the Bank for Investment and Development of Vietnam (BIDV), Civil Engineering Construction Corporation No.4 (Cienco4) under the Ministry of Transport, and Corporation 319 under the Ministry of National Defence.
Under the deal, BIDV will lend VND 2,944 billion, with 17-year maturity, to the project. Besides, BIDV will also provide other services, such as a credit package for four sides of bank, investor, contractor and building material supplier; retail banking products; and insurance products, to help investors complete the project on time.
Previously, BIDV and the Ministry of Transport also signed a cooperation agreement for BOT projects from Thanh Hoa province to Can Tho province. Accordingly, BIDV agreed to lend a maximum of VND 30,000 billion, equivalent to 85 per cent of total investment, to each project.
Present at the signing ceremony were Mr. Dinh La Thang, Minister of Transport; Senior Lieutenant General Nguyen Thanh Cung, Deputy Minister of Defence; Mr. Tran Bac Ha, Chairman of BIDV Board of Directors; and other representatives from Nghe An and Thanh Hoa provinces.