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Six foreign banks back Nhon Trach 2 thermal power plant with $470m
Six foreign banks and the PetroVietnam Nhon Trach 2 Power Joint-Stock Company (PVNTP) signed a contract valued at US$470 million for the Nhon Trach 2 Thermal Power project on Tuesday in Ha Noi.
The banks are Citi Bank, HSBC, Credit Agricole, Sumitomo, Japan Development Bank and AK Bank.
This is considered the biggest export credit ever for Viet Nam, arranged by Citi Bank's export and agency finance division, which is part of Citi's global transaction services, located in Frankfurt, Hong Kong, Tokyo and Singapore. The debt is available in the US dollar and euro.
Ministry guarantee
The 12-year financing is guaranteed by Viet Nam's Ministry of Finance and insured by the German export-credit agency of Euler Hermes Kreditversicherungs AG (Hermes) and Japanese export-credit agency Nippon Export and Investment Insurance (NEXI).
"With the contract, we can now announce that the capital arrangement for the Nhon Trach 2 power project with a total capital of $706 million has been completed," Hoang Xuan Quoc, CEO of the PVNTP, said.
Under the contract, the thermal power plant in the southern province of Dong Nai will borrow $470 million for 12 years with a preferential interest rate to pay for the engineering, procurement and construction contract of the project.
The Nhon Trach 2 power plant is part of Viet Nam's current national electricity master plan.
The first turbine group was scheduled to start generating power in March next year, Quoc said.
"The second turbine group will generate power in April and the commercial power will be delivered by the end of 2011."
The EVN will buy all electricity produced by the plant through the 220kV national grid.
The plant is expected to provide 4.2 billion KWh every year with an annual turnover of VND4.2 trillion ($221 million).
The PVNTP is a joint investment company formed by PetroVietnam, the Electricity of Viet Nam, the Viet Nam National Coal and Mineral Industries Group and the Viet Nam Post and Telecommunications Group.
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