Signing of credit contract for investment in development of Hua Na hydroelectric plant

(Baonghean) -This morning, October 21, 2011, at Nghe An Development Bank Branch, the signing ceremony of the credit contract for investment in the development of Hua Na Hydropower Plant Project and the implementation of Decree 75/2011/ND-CP on investment credit and export credit of the State took place.

Attending the event were comrade Thai Van Hang - Member of the Provincial Party Committee, Vice Chairman of Nghe An Provincial People's Committee, representatives of Nghe An Development Bank and Hua Na Hydropower Joint Stock Company.

The Hua Na hydropower plant project, with Song Da Group as the general contractor, with a capacity of 180MW, started construction in April 2008 in Dong Van commune (Que Phong district, Nghe An) with a total investment of 4,864 billion VND. Of which, the total loan capital from Nghe An Development Bank Branch is 2,651 billion VND. The project is expected to be completed by the end of 2012.

Up to now, the construction progress of the main items of the project is ensuring the set schedule. However, this is the project with the largest number of resettled households compared to hydropower projects of similar scale, with more than 1,300 households of ethnic minorities, the investment cost for resettlement is up to nearly 850 billion VND. And due to the impact of inflation, fluctuations in the market price of raw materials and labor, the total investment increased from 4,864 billion VND to nearly 6,000 billion VND. In October this year, the Vietnam Development Bank agreed to lend Hua Na Hydropower Joint Stock Company an additional 411 billion VND for the project, bringing the total loan capital of Hua Na Hydropower project at this bank to 2,651 billion VND.

The signing of the additional loan credit contract on October 21, 2011 will be an important condition to increase financial potential, helping the Hua Na Hydropower Project to be completed on schedule, contributing to ensuring national energy security.

At the credit contract signing ceremony, representatives of Nghe An Development Bank Branch also deployed Decree 75/CP of the Government, aiming to provide investors with a better understanding of the Government's new regulations on credit investment.

Quynh Lan