Pursuant to:

  • Pursuant to Decision 82/2002/QD-TTg dated June 26th, 2002 of Prime Minister on establishment, organization and operation of Vietnam Environment Protection Fund;

  • Pursuant to Decision 35/2008/QD-TTg dated March 3rd, 2008 of Prime Minister on issuance of the Charter on organization and operation of Vietnam Environment Protection Fund

Targeted customers:

Object to be supported from VEPF are organizations and individuals who request and apply for soft-loans to implement projects, programs or activities on natural preservation and biodiversity preventing, combating and overcoming environmental pollution, deterioration and incidents of national, inter-sectional or inter-regional range, or dealing with environmental matters of a single locality but in large scale impact (hereinafter call investment project).

Loan criteria

  • Criteria 1: Project rationale and justification.

  • Criteria 2: Project effectiveness (environment, economy and society).

  • Criteria 3: Project relevance to regulations of VEPF.

  • Criteria 4: Project’s replication.

  • Criteria 5: Refundability.

Priority areas in financial assistance

  • Waste treatment.

  • Prevention and overcome environmental problem.

  • R&D of environmental closely technology.

  • Biodiversity conservation; and

  • Environmental education/communication and sustainable development.

Priority projects in financial assistance

  • Projects in list of the “Plan for strictly penalizing enterprises who caused severe environmental pollution” as promulgated in association with Decision No. 64/2003/QD-TTg of Prime Minister;

  • Projects on waste treatment in urban areas, traditional villages and hospitals;

  • Overcoming environmental problem;

  • R&D of environmental closely technology;

  • R&D of environmentally-friendly technologies;

  • Protection and improvement of vulnerable ecological systems, especially wetlands, inland conservation areas and marine conservation areas;

  • Preservation of gene sources and special, rare and endemic species;

  • Environmental education at schools;

  • Introduction and maintenance movements for communities to create naturally friendly customs and behaviors;

  • Propaganda for environmental protection and sustainable development; and

  • Environmental protection awarding.

Implementation

  • Loan principles: Project investors must (1) use the loan only for the purpose that stated in the credit contract; and (2) refund in time.

  • Project investors must meet but are not limited to these conditions: (1) be eligible for taking loans from VEPF; (2) have legitimate capability; (3) the project already completed in terms of investment and construction procedure as regulated by law; (4) the project plan has been appraised and approved by VEPF; (5) be able to refund by the deadline pledged in the credit contract; (6) have a certain percentage of corresponding capital to the loan and (7) have righteous method of loan guarantee.

  • Loan level: Loan level in VEPF is introduced by Ministry of Finance and finalized by Director of VEPF in each circumstance.

  • Loan duration: Duration of the loan depends on the capital capacity of VEPF, conditions of the project and refundability of project owner but not exceed ten years. Exceptions are defined by the Management Council.

  • Interest rate: Interest rate for each case is determined by Director of VEPF according to law regulations but not exceed the ceiling rate defined by Ministry of Finance for soft loan.

  • Loan assurance: Loan assurance is compulsory and on basis of a secured asset under the form of mortgage, pledge or guarantee by a third party. Other loan assurance regulations are due to existing law. The case of loaning without assurance is determined by General Director of VEPF, after consulting Leaders of the Operation Body.


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