Domestic banks jointly fund hydro-power plant

VGP – The Electricity of Việt Nam Group (EVN) yesterday signed a credit deal worth of VND 4,000 billion with five domestic financial organizations to raise capital for the Huội Quảng hydro power plant in the mountainous northwest.

May 13, 2009 8:42 AM GMT+7

Huội Quảng hydro power plant is under construction

The 520 MW plant, scheduled to complete after six years, is now under construction on the Nậm Mu River in the northern provinces of Lai Châu and Sơn La.

Its first turbine will come into operation by 2012 and the second in 2013.

The plant will not only supply more than 1.9 billion kWh in total to the national grid each year but also help regulate water flow for the lower section of the Red River, and facilitate socio-economic development in the Northwest.

The five institutions include the Bank for Investment and Development of Việt Nam (BIDV), Bank for Foreign Trade of Việt Nam (Vietcombank), Việt Nam Bank for Agriculture and Rural Development (Agribank), PetroVietnam Financial Joint-stock Corporation (PVFC) and the EVN Financial Joint-stock Company (EVNFC).
They pledged to provide a combined loan of VND 4,000 billion out of the total cost of VND 11,082 billion.

EVN’s representative revealed that the group had to mobilize capital from other resources to cover fund for the project.

By Hải Minh