JBIC wants to join a policy dialogue mechanism with Vietnamese public agencies. — Photo courtesy of Nikkei
The Japan Bank for International Cooperation (JBIC) is interested in investing in energy projects run by Vietnam Electricity (EVN) and the Vietnam Oil and Gas Group (PVN).
Kazuhisa Yumikura, managing executive officer and Global Head of Infrastructure and Environment Finance Group at JBIC, revealed the interest at a working session with the Committee for Management of State Capital at Enterprises (CMSC) on Tuesday.
JBIC considers the Vietnamese Government and State-run companies important partners, Yumikura said.
According to Yumikura, with Viet Nam aiming to limit Government debt, the EVN and PVN have improved their performance by mobilising capital without the Government’s guarantee. As a result, JBIC’s lending to both companies without a guarantee is suitable, he said.
However, he said the work is not easy, highlighting JBIC’s hope for support from Viet Nam’s Government. The lending process requires an assessment of the EVN and PVN, he added.
Yumikura said the JBIC always pays attention to monitoring projects run by the EVN, as the group plays an important role in the reform of the Viet Nam’s electricity industry despite increasing engagements of the private sector.
He stressed the JBIC wants to join a policy dialogue mechanism with Vietnamese public agencies.
Appreciating the JBIC’s desire to invest in energy projects, Nguyen Thi Phu Ha, vice chairwoman of the CMSC, said the Government has assigned the committee as well as the Ministry of Industry and Trade to draft a memorandum of understanding on a dialogue mechanism.
Accordingly, the vice chairwoman assigned the Department of Legislation and Internal Control together with the Department of Energy, with support from the EVN and PVN to co-ordinate in developing the memorandum of understanding.
Ha also suggested the JBIC work with the Vietnamese side to share experience on offering loans for energy projects and conditions required to obtain loans without the Government’s guarantee.
She said her committee also manages State-run companies implementing national transport infrastructure projects that the JBIC could consider participating in.
The committee is willing to provide information on such projects for the JBIC, Ha added. — VNS