Laws of Vietnam

Decision No.427-TTg of June 25, 1996 of the Prime Minister allowing the issue of construction bonds to mobilize investment capital for the construction of the Yaly hydro-electric power plant in 1996 and subsequent years. The total value of the bonds shall be 1,100 billion VND.

The issue of bonds for the construction of the Yaly hydro-electric power plant shall follow the Regulation on the issue of Government bonds promulgated together with Decree N0.72-CP of July 26, 1994 of the Government and a number of supplementary points in this Regulation;

+ The capital to be mobilized and the bonds’ term of each issue shall be decided jointly by the Minister of Finance and the Vietnam Electricity Corporation.

+ The capital obtained from the issue of bonds shall be managed and directly allocated to the project according to the current provisions on the allocation of investment capital for capital construction.

+ The bonds’ interest rates shall be determined through biddings organized by the State Bank or decided by the Ministry of Finance in conformity with the market interest rates of bonds issued by the State Treasury.

+ The capital for bond payment to be assured by the Electricity Corporation shall be taken from the capital depreciation fund and the annual after-tax profit of the Corporation.

+ The interest paid for the bond shall be accounted for in the project value.

+ In the construction process, the Electricity Corporation is entitled to use part of the bond capital for the payment of the due bonds, after ensuring the planned capital for the project. If no more bond capital is left, the Corporation shall have to use the capital depreciation fund and the annual after-tax profit for the payment of the due bonds.- (Summary)