95 million USD investment in Vung Ang thermal power project

The Japanese export credit contract worth 95 million USD to serve the investment in Vung Ang 1 Thermal Power Plant Project was signed by Vietnam Oil and Gas Group (PVN), Japan Bank for International Cooperation (JBIC) and Sumitomo Mitsui Banking Cooperation (SMBC) on the morning of August 12 in Hanoi.

Under the contract, JBIC will lend 60% and SMBC will lend 40%. The loan is insured by JBIC and the Japan Export-Import Insurance Corporation (NEXI), and guaranteed by the Vietnamese Ministry of Finance.

PVN leaders said this is the first credit contract that PVN has signed with JBIC Bank. This signing will be an opportunity for PVN to seek the possibility of arranging capital from Japanese credit institutions for thermal power projects in particular as well as other projects of PVN in general.

The Vung Ang 1 Thermal Power Plant project in Ha Tinh province has a total investment of nearly 1.6 billion USD, with the Vietnam Oil and Gas Group as the investor.

The plant is designed with 2 units, total capacity of 1,200MW and commercial electricity output of 6.64 billion kWh/year.

It is expected that Unit 1 will generate commercial electricity in July 2012, Unit 2 will generate commercial electricity in January 2013.

According to Vietnam+