GCTF Guarantees Credit for Cleaner Production
Thứ sáu, 09/09/2011
Green Credit Trust Fund (GCTF) was established under the initiative of the Swiss State Secretariat of Economic Affairs (SECO) in order to boost medium and long-term investment projects to renew equipment and technology to be environmentally friendly, through financial support for medium and small-sized businesses. GCTF recently presented credit guarantee conditions to Vietnamese businesses in Ho Chi Minh City
Green Credit Trust Fund (GCTF) was established under the initiative of the Swiss State Secretariat of Economic Affairs (SECO) in order to boost medium and long-term investment projects to renew equipment and technology to be environmentally friendly, through financial support for medium and small-sized businesses. GCTF recently presented credit guarantee conditions to Vietnamese businesses in Ho Chi Minh City
Ms. Nguyen Le Hang, GCTF coordinator in Vietnam, said that GCTF would guarantee 50 percent of all bank loans for businesses in order for them to renew production equipment for cleaner production and better environment. GCTF will also give a bonus worth up to 25 percent of the loan for projects that reach more than 50 percent of the level of environmental improvement; and 15 percent of the loan for projects that reach more than 30 percent of the level of environmental improvement. GCTF may provide a maximum US$200,000 for each project of this kind for 2-3 years and may guarantee US$10,000-1,000,000 worth of credit per project. However, GCTF will not intervene in banks' interest rate policies, meaning that businesses will negotiate the interest rate with banks.
As for the program in Vietnam, GCTF has four partners, including Vietnamese commercial banks (ACB, Techcombank and VIB), Vietnam Cleaner Production Center (VNCPC), a Swiss consultant center, and SECO. Three Vietnamese commercial banks will verify finance of business applicants, devise loan conditions (regarding interest rate, loan term and loan provisions), provide and withdraw the loan, and look for new customers. VNCPC will examine the technical aspect of projects of business applicants to identify the level of feasibility of the projects, counsel the banks, regarding finance for cleaner production technology for the projects and issues that would impact the environment, and check and appraise the efficiency and effectiveness of the projects to clarify the level of bonus. The consultant center in Switzerland will provide technical consultation for VNCPC, regarding projects with credit at more than US$100,000 each. SECO will dispatch letters of credit and transfer money to three Vietnamese banks through the Royal Bank of Canada (RBC).
In Vietnam, GCTF will focus its support on medium and small-sized businesses with chartered capital of less than US$5 million and less than 1,000 staff members. However, GCTF will also support large companies that are leading in areas where there are many smaller businesses, in order to expand the environmental improvement model after the first success.
Nguyen Le Hang said that to obtain a GCTF loan, businesses must hold a minimum 51 percent of domestic ownership. They must not be a part of a multinational company, or a running company, and must have a project proposing investment to renew technology, equipment and machinery, or to buy second-hand equipment and machinery, which however will bring about environmental efficiency. Each and every business can register more than one project. However, total bonuses for the projects will not exceed US$500,000. Moreover, businesses must allow GCTF to show their business results, within a normal security scope, to many other businesses, after their projects record a success.
Following the conditions, many industrial businesses in Vietnam are eligible to receive GCTF's credit and bonus. These include businesses in the areas of construction materials, glass, plastic ware, knitting, dyeing, food processing, steel, metallurgy, chemicals, paint, battery, tanning and more. Other kinds of businesses such as restaurant services, hotels, conference centers, trading centers, themed parks, and office buildings can also take part in GCTF providing that they have drawn-up projects related to fuel/energy saving and environmental protection.
So far, GCTF has examined and provided financial support for projects of several Vietnamese businesses like the Vietnam-France Steel Co., Ltd. with a project to renew equipment to save power (GCTF's loan has come through Techcombank), and the Tan Phu Plastic Joint Stock Company with a project to renew equipment and technology for production of 5-gallon barrels and N150 battery covers (this is the company's second project that has obtained GCTF's loan through ACB).
Several other projects are under technical examination and negotiation with banks. These include the PLATO Vietnam Joint Stock Company's project to change from manual Ni-Cr electric coating to a semi-automatic line; the Dong Nam Paper Joint Stock Company's project to replace the existing Kraft paper production line in order to save power and increase productivity; and the Hong Tien Cooperative's project to change from dated to new-technology vertical kilns to reduce CO2.
In addition, a number of other projects are being prepared, including the Van Hung Tea Joint Stock Company's project to substitute solar equipment for outdated burners and fluidized bed dryers for old ones, and the Huu Tin Plastic Co., Ltd.'s project to replace plastic casting equipment./.
As for the program in Vietnam, GCTF has four partners, including Vietnamese commercial banks (ACB, Techcombank and VIB), Vietnam Cleaner Production Center (VNCPC), a Swiss consultant center, and SECO. Three Vietnamese commercial banks will verify finance of business applicants, devise loan conditions (regarding interest rate, loan term and loan provisions), provide and withdraw the loan, and look for new customers. VNCPC will examine the technical aspect of projects of business applicants to identify the level of feasibility of the projects, counsel the banks, regarding finance for cleaner production technology for the projects and issues that would impact the environment, and check and appraise the efficiency and effectiveness of the projects to clarify the level of bonus. The consultant center in Switzerland will provide technical consultation for VNCPC, regarding projects with credit at more than US$100,000 each. SECO will dispatch letters of credit and transfer money to three Vietnamese banks through the Royal Bank of Canada (RBC).
In Vietnam, GCTF will focus its support on medium and small-sized businesses with chartered capital of less than US$5 million and less than 1,000 staff members. However, GCTF will also support large companies that are leading in areas where there are many smaller businesses, in order to expand the environmental improvement model after the first success.
Nguyen Le Hang said that to obtain a GCTF loan, businesses must hold a minimum 51 percent of domestic ownership. They must not be a part of a multinational company, or a running company, and must have a project proposing investment to renew technology, equipment and machinery, or to buy second-hand equipment and machinery, which however will bring about environmental efficiency. Each and every business can register more than one project. However, total bonuses for the projects will not exceed US$500,000. Moreover, businesses must allow GCTF to show their business results, within a normal security scope, to many other businesses, after their projects record a success.
Following the conditions, many industrial businesses in Vietnam are eligible to receive GCTF's credit and bonus. These include businesses in the areas of construction materials, glass, plastic ware, knitting, dyeing, food processing, steel, metallurgy, chemicals, paint, battery, tanning and more. Other kinds of businesses such as restaurant services, hotels, conference centers, trading centers, themed parks, and office buildings can also take part in GCTF providing that they have drawn-up projects related to fuel/energy saving and environmental protection.
So far, GCTF has examined and provided financial support for projects of several Vietnamese businesses like the Vietnam-France Steel Co., Ltd. with a project to renew equipment to save power (GCTF's loan has come through Techcombank), and the Tan Phu Plastic Joint Stock Company with a project to renew equipment and technology for production of 5-gallon barrels and N150 battery covers (this is the company's second project that has obtained GCTF's loan through ACB).
Several other projects are under technical examination and negotiation with banks. These include the PLATO Vietnam Joint Stock Company's project to change from manual Ni-Cr electric coating to a semi-automatic line; the Dong Nam Paper Joint Stock Company's project to replace the existing Kraft paper production line in order to save power and increase productivity; and the Hong Tien Cooperative's project to change from dated to new-technology vertical kilns to reduce CO2.
In addition, a number of other projects are being prepared, including the Van Hung Tea Joint Stock Company's project to substitute solar equipment for outdated burners and fluidized bed dryers for old ones, and the Huu Tin Plastic Co., Ltd.'s project to replace plastic casting equipment./.
By Phung Long