Supporting Japanese Firm's Exports of Power Facilities to Vietnam First Export Loan to Electricity of Vietnam
NR/2005-51
November 15, 2005
November 15, 2005
- Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed today a loan agreement totaling 7.7 billion yen with the Electricity of Vietnam (EVN), a cooperation in the Socialist Republic in Vietnam, with a guarantee provided by the Government of Vietnam. The loan was cofinanced with Mizuho Corporate Bank (agent bank) and Société Générale, Tokyo branch.
- This loan will finance a project where Hai Phong Thermal Power Joint Stock Company (Hai Phong TP JSC), in which EVN has an 87.5% equity stake, builds a coal-fired thermal power plant with a capacity of 600 MW (300 MW x 2 generating unit) in Hai Phong, northern Vietnam. The loan will support the export of power generation facilities from Marubeni Corporation, the Japanese exporter, to Hai Phong TP JSC by providing a loan to EVN.
- Since adopting the Doi Moi policy in 1986, Vietnam has experienced a sharp increase in power demand in tandem with fast economic growth (an average annual growth of about 10-15%). In particular, a widespread blackout broke out in the northern region in May this year, when the power system could not withstand surging power demand. Thus tight power supply is an urgent issue to address in the country's power sector. Under these circumstances, the construction of a coal-fired power plant under this Project will not only help national economic development through securing a stable supply of power but also support business activities of a number of Japanese affiliates operating in Vietnam.
- This loan is the first export loan to EVN that plays a central role in the country's power sector. JBIC is committed to supporting Japanese firms receiving orders and further expansion of trade between Vietnam and Japan.
