Petrovietnam Secures Loan to Develop Coal-Fired Power Plant

11 August 2011 (Last Updated August 11th, 2011 18:30)

Vietnamese state oil and gas group Petrovietnam has secured a $95m loan to build a $1.6bn coal-fired power plant in central Vietnam. The loans will be provided by two Japanese banks - International Cooperation, which will provide $57m, and Sumitomo Mitsui, which will provide $38m.

Vietnamese state oil and gas group Petrovietnam has secured a $95m loan to build a $1.6bn coal-fired power plant in central Vietnam.

The loans will be provided by two Japanese banks - International Cooperation, which will provide $57m, and Sumitomo Mitsui, which will provide $38m.

Petrovietnam deputy chief executive Nguyen Tien Dung was quoted by the Dau Tu (Investment) newspaper saying that the loan completes the funding package of $1.2bn for the plant.

The first generator of 1,200MW plant in Ha Tinh province is expected to commence operation in July 2012.

Petrovietnam as the operator will invest 30% of the costs to develop the project, reports Reuters.

The company secured $904m for the project from a consortium of foreign banks which included HSBC , China Development Bank, Bank of Tokyo-Mitsubishi UFJ, Credit Suisse and Italy-based Intesa SanPaolo.