HÀ NỘI — Vietnam Electricity (EVN) has signed a loan agreement worth 65 million EUR (US$75.5 million) with the German Reconstruction Bank (KfW) for the Trị An hydropower plant expansion project, the group has announced.

This is the first project that KfW has lent to EVN in the form of a direct loan, without a government guarantee.

The expanded Trị An hydropower plant is the last one in the hydropower cascade on the Đồng Nai river system before the river flows through HCM City.

The expanded plant has a designed capacity of 200MW, located parallel to the existing Trị An hydropower plant. It is expected to contribute to ensuring a stable and cost-effective electricity supply.

The signing of the loan agreement marked an important step forward in the implementation of the Trị An hydropower plant expansion project, while continuing to affirm the effective and long-term cooperation relationship between EVN and KfW in the field of sustainable energy development.

KfW is one of the largest banks in Germany. In Việt Nam, EVN is one of KfW's most important partners. In the electricity sector, since 2009, KfW has signed nine official development assistance (ODA) funding agreements and non-refundable loans for EVN with a total capital of 891.5 million EUR, of which six projects have been completed and disbursed KfW loans. 

For new projects, KfW has committed about 800 million EUR of ODA capital, preferential loans, and loans without government guarantees to implement new projects of EVN and EVN's member corporations in the coming time. — VNS