A view of Vinh Tan 2 thermal power plant. (Photo: genco3.com)
Vietnam’s state-owned National Power Transmission Corporation (NPT) has signed a $200 million loan facility for a coal-fired power plant, backed by Japanese export credit agency (ECA) Nippon Export Investment Insurance (NEXI).
NPT, a subsidiary of Electricity of Vietnam (EVN
), signed the project finance facility in December with coordinator BNP Paribas and a club of Japanese banks including Sumitomo Mitsui Trust Bank, Shizuoka Bank, Nomura Trust Bank, and Daishi Bank.
Proceeds will finance the construction of the 500 kilovolt (kV) Vinh Tan Power Center, a coal-fueled energy plant, and the Song May-Tan Uyen Transmission Line branch.
The deal is part of a state-wide $123 billion capital expenditure program, Power Master Plan VII, aimed to boost the country's energy supplies, according to www.txfnews.com.
ECAs are expected to participate in many of the future financing under the program, say export financiers.
“I think ECAs will play a big part in the financing role of Power Master Plan VII,” said Tim Lamey, head of Asia-Pacific export finance at BNP Paribas. “I think multinationals will be in there as well, like the World Bank and the Asian Development Bank.”