Japan Banks to Lend $338M to Vietnam Power Project

Japan Bank for International Cooperation (JBIC) and Bank of Tokyo Mitsubishi UFJ (BTMU) have signed deals to lend a combined $338.2 million to Vietnam’s thermal power project. Of the total, JBIC will finance $202.9 million with annual interest rate of 3.12% while BTMU will provide $135.2 million at the interest rate of 1.2%. Term of loans would be 17 years. Located in the central province of Binh Thuan, the 1,200-MW Vinh Tan 4 project invested by state utility Vietnam Electricity (EVN), is estimated to cost VND36.7 trillion ($1.75 billion). Earlier, local media reported that up to 85% of the total investment would come from the Export-Import Bank of Korea (KEXIM), Korea Trade Insurance Corporation (Ksure), and Japan Bank for International Cooperation (JBIC). The project would be carried out by a consortium of South Korean Doosan Heavy Industries, Japanese Mitsubishi Corporation, Vietnamese Pacific Ocean, and Power Engineering Consulting Joint Stock Company 2. The plant is expected to generate 7.2 billion kWh of electricity annually once it is in place in third quarter of 2018. Vinh Tan 4 belongs to the four-plant Vinh Tan Power Center with a combined capacity of 5,600 MW per annum. Vinh Tan 1 and Vinh Tan 3 mark the participation of Chinese contractors. (Chinhphu.vn July 17, Thoi Bao Kinh Te Viet Nam – Vietnam Economic Times July 18 p3)