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Development power grids in Hanoi and Ho Chi Minh cities

Development power grids in Hanoi and Ho Chi Minh cities - 

The Prime Minister has approved the financial mechanism of grid development projects in Hanoi and Ho Chi Minh cities with loans from Asian Development Bank (ADB), ASEAN Infrastructure Fund (AIF).

Accordingly, a $ 272.7 million ADB &AIF is re-borrowed from Vietnamese government by EVN HA NOI and EVN Ho Chi Minh city with a 0.25% annual additional fee according to the loan conditions of ADB and AIF. The re-borrow term is the same the borrow term from ADB&AIF as 20 years with a graceful time up to March 15, 2020

Regarding the counterpart fund, EVN Hanoi and EVN Ho Chi Minh city are responsible to arrange 100% sum of their part.

The Prime Minister assigned the Ministry of Finance to sign an Agreement for Auxiliary Borrowing with EVN HA NOI and EVN Ho Chi Minh city in accordance with the Agreement between Vietnamese government and ADB & AIF and the current Regulations.

At the same time, Electricity of Vietnam (EVN) is responsible to guarantee for EVN Hanoi, EVN Ho Chi Minh city and commit to pay the debt in case if EVN Hanoi and EVN Ho Chi Minh city should not pay according to the Agreement for Auxiliary Borrowing and the current Regulations.

VietnamEnergy.vn

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