Vietnam - Over $3b set for power projects

The Electricity of Vietnam (EVN), the country’s power group has been focusing on arranging capital for investment projects in 2012, especially urgent power source and grid projects, the Nguoi Lao Dong newspaper reported.

As posted by Vietnam News Agency, EVN is making big efforts to arrange new ODA loans totalling at over $2 billion and foreign commercial loans of over $1 billion.

In which, the group signed frame agreements for transmission grid investment program worth $730 million in line with periodic funding method for the period of 2011 to 2020, and borrowed $378.9 million from World Bank to carry out the effective electricity distribution project.

Also the power giant successfully negotiated to get the $330 million loan from German bank KfW for O Mon IV project, and inked WB’s support loans worth $200 million to develop reform policies of the electricity sector—second phase.

EVN, furthermore, plans to borrow loans from KfW to implement new projects such as transmission grid project (300 million euro), intelligent grid development (200 million euro), project of upgrading energy efficiency in rural areas 2nd phase (120 million euro), urban electricity grid development project (39 million euro), and Phu Lac 1 wind power project (35 million euro).

Therefore, in 2012, the state group expects to actualize total investment load of 75.567 trillion dong, growing 18.7% against 2011, in which net investment will be 52.248 trillion dong, +21.1%, and 22.851 trillion dong will be used to pay original debts and interests. With such capital source, EVN will start operation of eight turbines of four power plants namely Son La, Dong Nai 4, Ban Chat, Kanak with total designed capacity of 1,373 MW; kick off construction on four thermal power projects namely Duyen Hai 3, O Mon I, Thai Binh 1 and Trung Son (total capacity of 2,390 MW).

In addition, EVN will prepare conditions to begin work of Vinh Tan 4, O Mon IV thermo power plants and infrastructure of Ninh Thuan Nuclear Electricity Centre.

VietBiz24

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