Decision No. 427/TTg on the issuance of bonds to raise capital for the Yaly Hydropower Project

Pursuant to …;

OF THE PRIME MINISTER

Regarding the issuance of bonds

to raise capital for the Yaly Hydropower Project

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Government Bond Issuance Regulation issued together with Decree No. 72/CP dated July 26, 1994 of the Government;

To meet the capital requirements for the Yaly Hydropower Project;

Considering the proposal of the Minister of Finance and the Minister of Industry,

DECISION:

Article 1. Permission is granted to issue project bonds to raise capital for constructing the Yaly Hydropower Project in 1996 and subsequent years. The total amount of bond issuance for the entire project is 1,100 billion VND.

Article 2. The issuance of bonds for the Yaly Hydropower Project shall be carried out in accordance with the Government Bond Issuance Regulation issued together with Decree No. 72/CP dated July 26, 1994 of the Government, supplemented by the following points:

1. The amount of capital raised and the term of each bond issuance shall be specifically determined by the Minister of Finance in coordination with the Vietnam Electricity Corporation, in accordance with the construction progress of the project and the approved budget estimates for each component of the project, which will be funded by the raised capital.

2. The source of funds from the issuance of bonds for the Yaly Hydropower Project shall be managed and directly allocated to the Yaly Hydropower Project according to current regulations on the allocation of investment capital for basic construction.

3. The interest rate on the bonds shall be formed through bidding at the State Bank, or set by the Ministry of Finance in accordance with market interest rates if the direct issuance method through the State Treasury is implemented.

4. The source of funds for repaying the bonds for the Yaly Hydropower Project shall be guaranteed by the Vietnam Electricity Corporation, drawn from the basic depreciation fund and annual post-tax profits of the Vietnam Electricity Corporation.

5. Interest payments on the bonds shall be recorded in the value of the project according to the current financial regulations.

6. During the construction period of the project, the Vietnam Electricity Corporation is permitted to use part of the funds raised through bond issuance to repay maturing bonds after ensuring the project's investment capital according to the plan. In cases where the funds raised through bond issuance are insufficient to repay maturing bonds, the Vietnam Electricity Corporation must use the basic depreciation fund and annual post-tax profits to repay maturing bonds.

Article 3. This Decision takes effect from the date of signature. The Minister of Finance, the Minister of Industry, the Governor of the State Bank, the Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally-administered cities, and the Chairman of the Board of Directors of the Vietnam Electricity Corporation are responsible for implementing this Decision./.