Efficiency from the Environment Protection Fund loan
- Tuesday - 24/11/2020 14:25
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Dong Nai is one of 48 provinces with the Environment Protection Fund (EPF). From the capital of billions dong granted by the province and operating in the form of authorization, up to now, the fund has grown to more than 287 billion dong, lending 81 projects with a total amount of more than 431 billion dong.
Wastewater treatment system at the waste water treatment area of
Quang Trung commune, Thong Nhat district with loan from the Environmental
Protection Fund
It is considered as a "financial float" of many businesses and cooperatives operating in the environmental field because of low interest rates and long loan periods.
More than 431 billion VND loan to invest in environmental protection
Ms. Hoang Thi Nhung, Director of Provincial Environmental Protection Fund, said that the fund was established in 2006. In the early stage (from 2006-2012), the fund operated in the form of trust, provided 68 billion VND of loans and signed on nearly 19 billion of EPF. In order to improve operational efficiency and create conditions simultaneously for businesses and cooperatives to access capital, in 2013 the province switched to operate in the full-time form. Up to now, the capital development fund has been more than 287 billion VND, has loaned 81 projects with the total amount of more than 431 billion VND, and received more than 114 billion VND from projects signed on EPF as regulated.
According to Ms. Nhung, most of the industrial wastewater treatment zones are concentrated in the province; Waste treatment plants and cooperatives operating environmental services have made a loan from EPF to build infrastructure, purchase equipment, invest in waste treatment technology. The approved projects can do business effectively, repay capital and interest in accordance with regulations, and have no bad debts.
Mr. Tran Anh Dung, General Director of Sonadezi Environment Joint Stock Company - which has just borrowed more than 150 billion VND from EPF to implement the project of domestic and industrial waste treatment in Vinh Cuu district, said that most projects related to the environmental sector have large investment costs, little profit, and long capital recovery. Without preferential interest rate loans, it is difficult to implement. Currently, the company is investing in a household waste treatment plant to make fertilizer with a capacity of 450 tons/day, a wastewater treatment system of 180m3/day and a sludge treatment system with a capacity of 100m3/day. This is one of two large-scale environmental protection projects in the province and is expected to be completed by the end of 2020.
Mr. Phan Thanh Hung, Director of Phu Loi Trade and Service Cooperative (Dinh Quan district), said that thanks to a loan of more than 10 billion VND from EPF, the cooperative has upgraded and bought more than 10 specialized trucks to carry trash (type from 2.5-10 tons), meeting the criteria of garbage trucks, collecting 100% of domestic waste in the two districts of Tan Phu and Dinh Quan. “EPF is very useful to cooperatives. It provides long-term loan period, low and stable interest rate during the loan period and support the cooperative to borrow many times. I am proposing to borrow about 5 billion VND to buy 2 10-ton special-use vehicles in early 2021 ”- Mr. Hung said.
Also thanks to EPF, Thanh Lam Environmental Sanitation and Service Cooperative (Trang Bom district) from only owned one 2.5-ton truck, which is not enough to meet the requirement of transporting domestic waste, to purchase 11 specialized vehicles so far, create stable jobs for more than 60 workers. “EPF provides a lot of support for cooperatives. From loans with preferential interest rates, the cooperative has purchased and upgraded transports; investing in free housing for workers ”- Mr. Vu Duy Lam, Director of the cooperative said.
Prioritize community projects
Construction of wastewater treatment system at Vinh Tan industrial and domestic waste treatment area, Vinh Cuu district, project loan from Environment Protection Fund 2020
EPF operates not for profit purposes, it provides low interest rates, long loan term, so the demand for loans is quite high.
Director of provincial EPF, Mrs. Hoang Thi Nhung said that the need to borrow capital from the fund to implement environmental projects is very high, up to hundreds of billion VND per year, but the fund is limited. Currently, the fund is giving priority to loan projects to buy garbage trucks, specialized garbage compactors; technology innovation project in environmental treatment and community-based environmental protection projects that urgently contribute to environmental protection in the province.
“We are appraising 3 loan applications in 2020, having received 8 loan applications in 2021 while the fund has only about 4 billion VND. It is expected that by 2021, there will be about 50 billion VND more from the provincial budget and capital recovery of due projects, but still not enough to meet the borrowing needs”- Mrs. Nhung informed.
According to EPF’s regulations, businesses and cooperatives have projects related to environmental protection and improvement such as: wastewater collection and treatment, purchase of garbage trucks, installation of automatic environmental monitoring systems (land, water, air), the owner of the waste treatment plant is allowed to borrow up to 70% of the approved project value and the maximum loan interest rate equal to 50% of the Bank for Investment and Development of Vietnam (BIDV) at the time of borrowing. This interest rate is fixed for the entire loan term. Processing time is 45 days. In addition, the fund also lends capital to livestock farm owners to invest in the treatment of manure and wastewater in livestock to meet environmental standards before discharging them into rivers and streams; funding propaganda activities to raise awareness of environmental protection.