Signing Loan Agreement for Vinh Tan 4 Thermal Power Plant Project

Signing Loan Agreement for Vinh Tan 4 Thermal Power Plant  Project - 

In the morning of July 17th, 2014 in Hanoi, Electricity of Vietnam (EVN) held the Loan Agreement signing Ceremony of the Japan International Corporation Bank (JBIC) for Vinh Tan 4 Thermal Power Plant Project.

The Loan Agreement signing Ceremony for Vinh Tan 4 Thermal Power Plant Project.

Speaking at the Ceremony, EVN General Director Pham Le Thanh said: in order to meet the strong growth demand of the economy,in recent years, EVN invested the hundreds of thousands billion VND for the new construction, reconstruction and upgrading the power generation and grid projects with an investment growth rate of over 20% per year. Especially in 2013, EVN already invested VND 104,791 billions - it was the first time that EVN invested over VND 100,000 billions. In 2014, EVN planed to invest VND 123,654 billions.

EVN, JBIC and Bank of Tokyo Mitsubishi (BTMU) had signed a loan agreement worth of US$ 338,2 millions for the project. This event marks an important step in the implementation of the Vinh Tan 4 Thermal Power Plant Project, contributes to ensure a part of capital for the project in order to meet the progress of generation of the plant by 2017 as planed.

The Power Generation Corporation 3 (EVNGENCO 3) is the investor of Vinh Tan 4 Thermal Power Plant Project, with a capacity of 1200 MW, including two 600 MW units, located in Vinh Tan Power Centre that includes 4 thermal power plants with a total capacity up to 5,600 MW and located at Vinh Tan commune, Tuy Phong district, Binh Thuan province. This is the largest coal thermal power Center of the country. After construction, it will meet electrical energy directly for South - Central region and the southern provinces.

The total investment of the project is about US$ 1.763 billions (equivalent to VND 36.7 trillions), supplying of about 7.2 billions kWh for power system every year.

The agreement is worth of $ 338,205,423 as a Japanese export credit loan guaranteed by Vietnamese government in order to fund a part of the capital needs of the project. Among that, the loan of JBIC is $202,923,253 with interest rate 3.12 percent (year), and the loan from Bank of Tokyo Mitsubishi UFJ (BTMU) is $135,282,170 insured by Japanese Import and Export Insurance Credit Organization with interest LIBOR + 1.2 percent (year) in a 17 year term.

The first unit of the project is expected to put into operation after 46 months of the construction (at the end of quarter 4. 2017), the second unit will put into operation later the first unit about 6 months (expected at the end of quarter 3, 2018).

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