THACO said that VinSpeed High-speed Railway Investment and Development Joint Stock Company has proposed to invest in the North-South high-speed railway project and is being considered and evaluated by competent authorities.
In the proposal, THACO expressed: is a multi-industry industrial group, after thoroughly studying the North-South high-speed railway project with the goal of doing the best and making the most practical and highest contribution to the country, THACO has decided to propose investing in the North-South high-speed railway project.
To implement this project, THACO will establish an investment project and be approved by the competent authority according to the Investment Law No. 61/2020/QH14 using equity capital and other legally mobilized capital.
Accordingly, THACO will apply railway technology to run on rails, electrification; ensure modernity, international standards on the principle: THACO cooperates with domestic enterprises to receive reasonable technology transfers from partners with world-leading experience in Europe (Germany, France...) and Asia (Japan, Korea...).
It is known that the total investment (including compensation, support and resettlement costs) of the project is 1,713,548 billion VND, equivalent to about 67.34 billion USD.
THACO proposed to invest in the project with a total investment of about VND 1,562,000 billion, equivalent to about USD 61.35 billion.
To carry out this investment, THACO will use its own capital and other legally mobilized capital.
The capital corresponding to 20% of the total investment, equivalent to about 12.27 billion USD, is THACO's contributed capital (including equity and other legally mobilized capital) through issuing increased equity to THACO and its member corporations, but still ensuring that Mr. Tran Ba Duong and his family hold a controlling stake in THACO.
At the same time, THACO will establish a project implementation company and invite other domestic corporations and enterprises to participate in contributing capital, in which THACO will hold a controlling stake to jointly implement the project, with the condition: not transferring or transferring project capital, contributed capital, or shares in the project implementation company to foreign countries.
The remaining 80% of total investment capital, equivalent to about 49.08 billion USD, will be borrowed by the company from domestic and foreign credit institutions; guaranteed and supported by the Government for all loan interest for 30 years, with the collateral being the entire project project.
