Finance approved to build power plants
Finance approved to build power plants
The Electricity of Viet Nam (EVN) yesterday signed a credit contract worth VND2.5 trillion (US$119.05 million) with the Viet Nam Development Bank (VDB) to develop the Vinh Tan 2 and Duyen Hai 1 thermo-electric plants.
The amount will be financed by the State Bank of Viet Nam. The two factories have a combined capacity of 2,400MW and a total investment capital of over VND52.7 trillion ($2.5 billion).
EVN board chairman Hoang Quoc Vuong said the conclusion of the contract was very important for power supply development in the context of economic difficulties. The projects are being developed in order for the plants to contribute further to the electricity systems of the southern region and the country as part of a national master plan to develop power sources up until 2015. The electricity company began construction of Vinh Tan 2 in the south-central province of Binh Thuan in August 2010, and started construction of Duyen Hai 1 in partnership with a Chinese company in the Mekong Delta province of Tra Vinh the month after.
At the end of last year, EVN had over 80 power supply and grid projects sponsored by the VDB with a total registered funding value of about VND36.9 trillion ($1.76 billion). These included key national projects including the Son La, Lai Chau, Huoi Quang and Ban Chat hydroelectric plants.
According to VDB general director Nguyen Quang Dung, about 39 per cent of the bank's total outstanding loan went into power projects, 45.6 per cent of which were invested in by the EVN.
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