Investment and Development Fund proves effective

Over the past decade, the Da Nang Investment and Development Fund has provided preferential-interest-rate loans for the city-based businesses to develop their projects involved such aspects as education, water supply, plus transport and electrical infrastructure.

The Not Nhac Xanh (Green Musical Note) Pre-school located in Lien Chieu District’s Hoa Khanh Bac Ward

is one of educational projects using preferential loans from the Fund

By the end of 2018, the total capital of the Fund was 1,571.2 billion VND, up 869.9 billion VND compared with 2013.

Between 2013 and 2018, the Fund loaned a total of 1,933.2 billion VND to 95 local project developers.

In detail, 232.1 billion VND in loan was given to projects involved in water supplies, 419 billion VND for electrical grid works, 460 billion VND for traffic infrastructure, 591.5 billion VND for educational infrastructure, 221 billion VND for business and production facilities, and 9.6 billion VND for others.

Many projects using preferential loans from the Fund have been put into use and operated effectively. Most notable amongst them are the Not Nhac Xanh (Green Musical Note) Pre-school located in Lien Chieu District’s Hoa Khanh Bac Ward.

Ms Le Pham Hong Diep, Chairwoman of the Board of Directors of the Pre-school, said the construction cost of the school was 29 billion VND, 17.4 billion VND of which was borrowed from the Fund at an interest rate of 7.5% pa.

Another typical example for accessing preferential loans from the Fund was the municipal Power Company.

Mr Vo Hoa, Director of the Company, said since 2013 his company has borrowed 250 billion VND from the Fund in order to implement 21 construction projects to bring benefits to local residents and upgrade the city’s power grid works.

The company’s projects included the 110kV Hoa Xuan transformer station in Cam Le District’s Hoa Xuan Ward, and the 110kV Ngu Hanh Son transformer station in Ngu Hanh Son District’s Hoa Quy Ward.

In addition to using the city budget, the Authority of the Fund has become actively engaged in appealing to international financial organisations to offer their lending.

Most notably, the World Bank and the French Development Agency have together given a total of 534 billion VND in ODA loan to the Fund. The loan has been used in educational, environmental protection and transport projects.

By DA NANG Today / DA NANG Today