The initial payment arrangement is applicable to TVP applications received by the Secretariat on or after 1 December 2019.
A successful applicant with an approved project who wishes to receive an initial payment of the approved funding is required to maintain under its name a separate risk-free interest-bearing Hong Kong dollar bank account with a licensed bank registered under the Banking Ordinance (Cap. 155) solely and exclusively for the purpose of processing all receipts and payments of the project (“designated bank account”).
As TVP funding is provided on a 3 (government):1 (enterprise/organisation) basis, the applicant should first deposit its own share of contribution to the project fund into the designated bank account, and produce the relevant deposit proof to support its request for initial payment.
For example, TVP application with a total project cost of $400,000 is approved with $300,000 Government funding, while the applicant needs to contribute $100,000. The Government will make a maximum initial payment of $75,000 (25% of $300,000) upon the applicant’s deposit of $25,000 (25% of $100,000) to the designated bank account. If the applicant deposits $30,000 (i.e. more than 25% of $100,000), the Government’s initial payment would still be $75,000. If the applicant only deposits $10,000 (i.e. 10% of $100,000), then the Government’s corresponding initial payment would be $30,000 (i.e. 10% of $300,000).
