Credit contract signed for petrol storage facility

Vietnam’s four major banks have agreed to provide credits worth US$77.5 million with a grace period of two years for the nation’s first bonded warehouse for petrol.

The contract for this was signed by the Petrolimex Group Commercial Joint Stock Bank (PG Bank), the Military Commercial Joint Stock Bank (MB), the Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) and the Bank for Industry and Trade Bank (Vietinbank) in the central city of Nha Trang on June 8.

The sum makes up 70 percent of the project’s total investment.

Construction on the US$125-million facility began in the Van Phong Economic Zone in Ninh Hoa district of the central province Khanh Hoa in December 2007.

A depot capable of holding 500,000 cubic metres of petrol will be built in the first phase until 2011. It will be expanded to hold a further 500,000 cubic metres by the end of the second phase.

The depot will be equipped with the latest environment friendly technologies and be able to handle large oil tankers.

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