Danida Financing Program (DBF) – This program provides interest-free loans for infrastructure projects in developing countries, […]
– This program provides interest-free loans for infrastructure projects in developing countries, with priority given to projects on green growth, environment, health, education, renewable energy, water, food safety...
– Loan term is 10 years with loan currency being USD or EUR. The Ministry of Finance of the country of nationality of the borrower must guarantee the loan, as a precondition of the DBF.
– The objects of DBF's consideration are infrastructure projects that are not capable of commercialization, serving community benefits and social security implemented in developing countries that have cooperative relations with Denmark. Characteristics of this type of project: no access to market financing; The total project budget is at least about 15 million USD. In addition, the project must satisfy bidding conditions, specifically: only Danish companies or joint ventures led by a Danish company can participate in the bidding; The program will support the project with a consulting engineer to design details and develop bidding documents; The process of organizing calls for bids and evaluating bids is carried out by the project owner; and DBF will be requiredLetter of no objection to the bidding results and the agreement signed with the winning company.
– Once approached and granted a loan from DBF, the project implementing unit will receive interest rate support throughout the project implementation period and payback period, free export credit, bank interest rates, and receive additional cash subsidies (if necessary) according to OECD calculation guidelines (specifically: 50% cash support for countries in the Group of Least Developed Countries and 35% cash support for for the remaining countries).
– IFU is the Danish government's investment fund for supporting economic and social development in developing countries. The Danish Investment Fund was established in 1967. The Danish Ministry of Foreign Affairs appoints the Fund's Executive Board.
– The goal of the Danish Investment Fund is to promote economic activities in developing countries that have cooperative relations with Denmark in the fields of trade and industry. To date, IFU has more than 1,200 investment projects in 100 countries with a total investment capital of nearly 2.8 billion USD on a commercial basis, with investment fields including renewable energy, agriculture, water, health, education,...
– IFU's characteristic is to jointly contribute capital with other investors, the maximum number of shares contributed is 49% with a clear divestment strategy with an investment period of 7-8 years.
-EKF is an official Danish credit channel with nearly 100 years of experience in the field of loan guarantees for export activities, owned, guaranteed and operated by the Danish State in commercial fields.
– EKF guarantees up to 95% of loan capital for Vietnamese businesses with contracts to purchase Danish technology and equipment, and there is no limit to the loan limit.
– The credit period can last up to 10 years with an interest rate of 1.9% - 2.6%/year (or 8.6% - 11.8% one-time payment in advance). However, with a loan term of 05 years, the credit level is applied at a lower interest rate, from 1.7%-2.3%/year (or 4.7%-6.4% one-time payment in advance).
– A prerequisite of EKF is that part of the project's purchases must be services or equipment provided by the Danish company./.
Details in the attached document:
Procedures
