Representatives of PVcomBank and PVPower sign a credit contract on Monday. — Photo vneconomy.vn

HA NOI (Biz Hub) — The Viet Nam Public Bank (PVcomBank) will lend the PetroVietnam Power Corporation (PVPower) VND2 trillion (US$88.9 million) to develop a power project.

The two affiliates of the Viet Nam Oil and Gas Group (PetroVietnam) signed the credit contract in Ha Noi on Monday.

The Government has designated PetroVietnam, along with Electricity of Viet Nam (EVN) and Viet Nam National Coal–Mineral Industries Holding Corporation, as the key electricity producers of the country. This is in accordance with a national power development strategy until 2020, with vision until 2050.

As of mid-May, PVPower supplied the nation with 117.3 billion kWh of electricity, gaining nearly VND125.4 trillion in total turnover and roughly VND4.8 trillion in pre-tax profits. It contributed about VND7.1 trillion to the State budget.

PVPower is a single unit of PetroVietnam that operates in the electric power industry, while PetroVietnam plans to become the second largest electricity producer in the country after EVN, by 2025.

PVPower was established in 2007 with a charter capital of VND7.6 trillion, and its equity reached nearly VND21.8 trillion at the end of last year.

PVcomBank has VND100 trillion in total assets and VND9 trillion in equity. It has provided financial services to PetroVietnam and its subsidiaries with a committed amount of up to $2.7 billion.

The bank also underwrites activities related to payment, tender and contract performance, as well as bond issuance and capital borrowing of other units in the oil and gas sector. — VNS