2,500 billion VND bond capital for student housing

According to the Ministry of Construction, the 2012 government bond capital plan needed to allocate for student housing development projects is VND2,500 billion. The Ministry of Construction also proposed two options to submit to the Government for approval and allocation of this capital source.

Of the 94 projects whose list has been approved by the Prime Minister, 18 projects have been allocated enough capital to complete, and 76 projects need further capital allocation in 2012 and the following years.

Therefore, the 2012 capital plan will allocate sufficient capital for 35 projects including essential technical infrastructure completed in 2011; supplement capital for the remaining 41 projects to be implemented in 2012 and continue to allocate capital to complete items that have started construction in the following years; allocate new capital for 18 project categories in 16 localities and the Ministry of National Defense.

Illustration photo. (Source: Internet)

With option 1, the Ministry of Construction plans to allocate VND2,100 billion for student housing projects whose list has been approved by the Prime Minister and which have started construction to complete on schedule. This capital is about 46% of the remaining capital.

Of this, the additional bond capital is 1,882 billion VND and recorded 218 billion VND from the remaining capital of 2010 because 6 localities did not disburse all the capital recorded as 210.89 billion VND, due to not being able to extend the payment period to 2011 and the Dormitory project of Tay Bac University in Son La province was allocated a surplus of 7.2 billion VND.

However, the Ministry of Construction also proposed that the Government add 18 more student housing project categories. Therefore, based on the allocated capital, localities and units must rebuild the project in the direction of completing each component project in 2012 to submit to the Ministry of Construction, the Ministry of Planning and Investment, and the Ministry of Finance for appraisal before approval. The additional capital needed is estimated at about 400 billion VND.

The second option proposed by the Ministry of Construction is to allocate bond capital only to approved student housing projects that have started construction to complete on schedule at VND2,500 billion (50% of the remaining capital). Of which, the additional bond capital is VND2,282 billion and records VND218 billion from the remaining capital in 2010.

The criteria for allocating the Government bond capital plan will be implemented by the Ministry of Construction in order of priority. In particular, the focus will be on allocating capital (not taking into account inflation factors) to projects that have been completed, handed over and put into use before December 31, 2011 but have not yet allocated enough capital.

Next is to prioritize capital allocation for projects with fast progress, disbursement reaching over 70% and will be completed in 2012. In addition, continue to allocate capital to complete projects in the 2013-2015 period.

For large-scale concentrated projects in economically well-off localities such as Hanoi and Ho Chi Minh City..., government bonds will cover 30% of the remaining capital, the local budget will take on the advance payment of 30%, and the remaining capital will be allocated in 2012./.

(Vietnam+)