Japanese banks to fund VN thermal power project

Friday, Apr 03, 2015 14:25

A corner of themal power plant in Viet Nam. The country will receive loan from Japanese banks to build a thermal power plant project. — Photo Huy Hung

HA NOI (Biz Hub) — Eleven Japanese banks will jointly provide a JPY81billion (US$678.8 million) loan to the Electricity of Vietnam (EVN) to build a thermal power plant project in the country.

The banks include Mitsui Sumitomo Banking Corp, which will coordinate with other banks and the Japan Bank for International Co-operation (JBIC).

JBIC will supply more than $400 million, a major part of the loan, while eight regional banks will lend a combined $100 million.

The loans will be used to purchase power-generating equipment from Japan's Hitachi Company.

This is a close coordination model between financial institutions and producers to export facilities, which is being encouraged by Japanese authorities.

Viet Nam's economic growth is driving electricity demand, making power shortages an urgent concern. In order to create a favourable environment to attract more foreign investment, the Vietnamese government is hastening the construction of power plants. — VNS

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