BIDV, VietinBank sign $281-million credit deal for O Mon IV power plant

BIDV, VietinBank sign $281-million credit deal for O Mon IV power plant

BIDV, VietinBank, and Petrovietnam have signed a credit agreement to finance the O Mon IV Thermal Power Plant.

Photo: BIDV

The agreement was signed on July 24, with BIDV and VietinBank providing a credit package worth VND7.3 trillion ($281 million) to Petrovietnam for the investment and construction of the plant. The deal marks a significant milestone in arranging financial resources for downstream projects under the Block B - O Mon gas-to-power chain.

The O Mon IV Thermal Power Plant is a component venture of the Block B - O Mon gas-to-power project chain invested by Petrovietnam. Located in the O Mon Thermal Power Centre in Can Tho city, the plant has a capacity of 1,050 MW and utilises modern combined-cycle gas turbine technology.

Works on the O Mon IV Thermal Power Plant started in August 2025. The engineering, procurement, and construction contract has been signed. Many items are being implemented, with completion scheduled for 2028.

Once operational, the O Mon IV Thermal Power Plant is expected to utilise natural gas efficiently from the Block B field, converting domestic energy resources into electricity. The project will supply a large-scale source of electricity to the Mekong Delta, contributing to ensuring national energy security, promoting green growth, and creating more jobs and revenue for the national budget.

Le Ngoc Son, chairman of the Board of Directors of Petrovietnam, explained that, "Offshore natural gas can only realise its full value when downstream power plants are ready to receive it. The partnership of Vietnam’s two largest state-owned commercial banks in providing a $281 million credit package is the key to unlocking capital flows, ensuring that the entire value chain – from extraction and transportation to power generation – is implemented in a coordinated manner and according to the established timeline."

Le Ngoc Lam, chairman of the Board of Directors of BIDV said that the successful arrangement of a large local-currency capital source for a large-scale energy project is vivid proof of the strong financial capacity, profound understanding, and spirit of readiness to shoulder national responsibilities demonstrated by BIDV and VietinBank.

"The event is not merely a business lending decision but also demonstrates the pioneering role of leading financial institutions in promoting the mobilisation of the economy’s internal strengths, as well as prioritising projects that are significant in the process of developing green energy in accordance with BIDV’s environmental, social, and governance standards," Lam noted.

VIR