Financing Arrangements (E)

FINANCING MANAGEMENTS SERVICE

Objective: to support enterprises in approaching specialised Funds, preferential loans for energy and resources saving and efficiency at enterprises.

In manufacturing business along with scaling up, upgrading technology lines, etc. the difficulty and shortage of capital are always the problem for most enterprises, especially small and medium-sized enterprises in Vietnam (SMEs).

Therefore, enterprises will be for sure to have chance to approach preferential loans and funds such as low loan interest rates, favourable loan terms, grace period, bonus payment, etc. that will support enterprises in executive phases from the design, making investment projects for production lines and equipment.

For that reason, in case Enterprises are supported in arranging investment capital effectively that is approached easily together with reasonable costs, which will be an effective solution to the difficult problem that most enterprises are seeking to solve in the current socio-economic situation.

The financial support programs are usually in form of investment loan and credit guarantee related to energy- and resource saving and efficiency at enterprises.

However, to access these preferential loans, enterprises need to pay attention to the basic requirements when participating in the project, as follows.

Conditions to receive support include:

– Loan conditions:

• Have completed investment procedure according to the Law’s regulation
• Have profitable manufacturing business plan and ensure to repay debt
• Has committed to buy insurance for assets formed from loan belonging to compulsory insurance at an insurance company licensed to operate in Vietnam

– Conditions to have credit guarantee:

ENERTEAM would like to suggest some specialized funds and preferential loans that are trust for enterprises for reference as follows.

Some typical projects that ENERTEAM has implemented during the past time, including:

1.Sustainable Energy Financing, International Finance – Corporation (IFC) and Vietinbank, 2014 – 2017, includes the following activities.

• Improve ability of bank staff responsible for sustainable energy project
• Technical support to identify potential sustainable energy project submitted by enterprises for investment
• Technically evaluate and appraise submitted projects related to sustainable energy to approach the project funds

Some typical projects that have been done by ENERTEAM as follows.

2.Technical Service Provider for the Low Carbon Transition in Energy Efficiency (LCEE) financing mechanism, DANIDA & MOIT (reference source: www.lcee.vn)

• Evaluate document and technically appraise before and after deploying the investment
• Approach loan valued from 400 million dong to 4 billion dong
• Bank guarantee, about 50% of total investment
• Bonus payment from 10% – 30% depending on the energy saving or CO₂ emission reduction rate

List of 21 projects that have been carried out by ENERTEAM as below.

Therefore, at present, if Enterprises are planning to invest in energy saving/ energy and resource efficiency, or future execution orientation, ENERTEAM are willing to support in approaching these preferential loans through technical consultancy for your investment projects that are seeking for the implementation.