China Import-Export Bank Grants Loan to Vietnam Power Plant

Text of report in English by Vietnamese news agency VNA website

Hanoi, 1 April: The Electricity of Vietnam Corporation (EVN) on 1 April signed with the China Import-Export Bank a credit contract for the first phase of the Quang Ninh Thermoelectric Power Plant.

The Quang Ninh-based 600 MW power plant will have a total investment of 593.2m US dollars, 407.4m US dollars of which will be from foreign loans. It will be built in the form of EPC or engineering, procurement, construction contract.

The Shanghai Electric Group will be the project tenderer, while the China Export and Credit Insurance Corp. (Sinosure) will provide credit insurance service to the project.

According to Liangxiang, assistant to the Director of the China Import-Export Bank, under the credit contract, her bank will provide a loan worth equivalent to 85 per cent of the EPC contract plus 85 per cent of the credit insurance value.

EVN General Director Dao Van Hung said that this was the fourth credit contract EVN has signed with the Chinese bank. The corporation had previously signed with the bank credit contracts, worth 817m US dollars in total, for the Tuyen Quang and Ba Ha Hydroelectric Power Plants and the Hai Phong 1 Thermoelectric Power Plant.

Hung revealed that the two sides plan to sign additional contracts valued at a combined 850m US dollars by the end of this year to finance the Hai Phong 2 and Quang Ninh 2 Thermoelectric Power Plants and the Ban Ve Hydroelectric Power Plant.

The Quang Ninh plant is owned by the Quang Ninh Thermoelectric Power Joint Stock Company, in which EVN holds a 80 per cent stake, the Vietnam Coal-Mineral Industrial Group, 15 per cent and the Vietnam Construction Import-Export Corporation, 5 per cent.