Asian Development Bank Grants 931m-Dollar Loan to Vietnam’s Thermal Power Plant
Text of report in English by Vietnamese news agency VNA website
[Unattributed article from the "Business" page: "ADB aids Vietnam's Mong Duong thermal power plant"]
Hanoi (VNA) -The Asian Development Bank (ADB) has decided to provide a loan of 931 million USD to Vietnam’s Mong Duong thermal power plant No 1.
The loan will be rolled out under a two-stage financing programme, of which the first stage is worth 28 million USD with the second worth 903 million USD.
A framework financing agreement for the Mong Duong thermal power project and the loan agreement for its first-stage loan of 28 million USD was signed by ADB Country Director to Vietnam Ayumi Konishi and Governor of the State Bank of Vietnam Nguyen Van Giau in Hanoi on October 9.
The Mong Duong thermal power project will adapt new “clean coal” technology that enjoys a reduced impact on the environment. Once operational, the plant will add 2.200 megawatts of generating capacity to Vietnam’s electricity system in 2012.
Vietnam’s demand for electricity is growing at a rate of 16 per cent per year. The country’s continued economic development hinges on its ability to keep up with this growing demand. Power shortages pose a serious and growing threat to Vietnam’s sustainable economic development.
“Vietnam needs to diversify its energy resources to ensure a reliable, long-term source of power to fuel the nation’s development,” Konishi said at the signing ceremony.
Meanwhile, Governor Nguyen Van Giau said that once operational, the Mong Duong thermal power plant will help minimise the dependence on hydro-electric sources, contributing to a stable electricity supply in the dry season and boosting the country’s socio-economic development, particularly in its northern areas.
Vietnam is one of six priority countries for clean energy investment assistance under the ADB’s 1 billion USD a year energy efficiency initiative.
Originally published by VNA news agency website, Hanoi, in English 10 Oct 07.
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