On September 29, at the 26th session, the Hanoi People's Council passed a Resolution of the City People's Council amending and supplementing Point c, Clause 4, Article 2 of Resolution No. 07/2019/NQ-HDND dated July 10, 2019 of the Hanoi People's Council on prioritizing the development of a large-volume public passenger transport system; encouraging investment in the construction and exploitation of bus stations, car parking lots and other motor vehicles; applying high technology in the management and operation of the transport system.
The Resolution stipulates amending and supplementing Point c, Clause 4, Article 2 of Resolution No. 07/2019/NQ-HDND as follows: The city budget supports 70% of bank loan interest or loan interest from the City Development Investment Fund with a support limit of 100% of the loan contract value for the entire loan term (maximum not exceeding 10 years) according to the project for enterprises investing in the construction of large-volume public passenger transport infrastructure and enterprises participating in providing public passenger transport services by bus in the city to invest in purchasing electric buses, green energy and infrastructure systems (transformer stations, charging stations, gas stations) serving electric buses and green energy according to the project of each enterprise.
Explaining this issue, Director of the Department of Construction Nguyen Phi Thuong said that the increase in loan interest rate support to 70% (instead of 50% according to Resolution 07/2019/NQ-HDND) due to the total investment in electric buses increasing by 2-3 times compared to investment in diesel buses, so interest expenses increased by about 67-70%, equivalent to the increase in total investment.
Increase the loan interest support level to 70% to ensure compliance with the general support level compared to the provinces and localities currently applying (Hai Phong city, Vinh Phuc province previously had an interest support level of 80%).
Regarding the support limit of 100% of the loan contract value (resolution 07/2019/NQ-HDND not yet regulated), Mr. Nguyen Phi Thuong said that the addition of the loan support limit as required in Clause 2, Article 5 of Circular No. 02/2016/TT-BTC of the Ministry of Finance - this is a missing content, causing difficulties in implementing the policy in Resolution No. 07/2019/NQ-HDND, in order to provide maximum support for businesses, ensuring the completion of the conversion of electric and green energy buses by 2030 at the latest according to the plan of the City People's Committee.
Regarding the support period according to the loan contract period and not exceeding 10 years (instead of in the first 5 years in Resolution 07/2019/NQ-HDND), the Director of the Department of Construction said that increasing the support period according to the loan contract period and not exceeding 10 years ensures maximum support for businesses to invest, and is consistent with the current time of investment in buses in the city (the current bus vehicle depreciation period is 10 years according to the decisions approving the economic - technical norms for bus types in the city).
