The Japanese Bank for International Corporation and the Sumitomo Mitsui Banking Cooperation are providing a $95 million loan Vietnam National Oil and Gas Group (PetroVietnam) to build the Vung Ang Thermal Power Plant No. 1 in Ha Tinh province under a credit contract signed on 11 August.
The Vung Ang Thermal Power Plant No. 1, to be built in Ky Loi commune of Ky Anh district, will have a power generating capacity of 1,200 megawatts and projected to come online between July 2012 and January 2013, VietnamPlus news agency reported. When fully operational, the Vung Ang Thermal Power Plant No. 1 will generate 6.64 billion kilowatt hours annually for the national grid, helping ease the country’s chronic power shortages.
Our months ago a consortium of five foreign banks agreed to provide a $904 million loan towards helping Vietnam upgrade its electrical power generating capacity. The consortium members include HSBC, the China Development Bank, the Bank of Tokyo-Mitsubishi UFJ, Credit Suisse and Italy's Intesa SanPaolo.
Japan and Vietnam have agreed that Japan will continue to support nuclear energy expansion in Vietnam by building two nuclear power plants. The two countries agreed in October 2010 that Japan would build two reactors by 2021 and Vietnam plans to build 14 nuclear power plants by 2030 to meet the nation’s rapidly growing demand for electricity.
By. Joao Peixe, Deputy Editor OilPrice.com
Joao is a writer for Oilprice.com