SBV, WB Sign Credit Agreement on Trung Son Hydropower Plant

The State Bank of Vietnam (SBV) and the World Bank (WB) just signed the financing agreement and related documents for US$330 million to Vietnam to support the Trung Son Hydropower Project.

 

The mid-sized multipurpose hydropower project will help meet growing domestic demand for electricity and bring flood control and irrigation benefits to rural and poor communities in Thanh Hoa province in Vietnam. It also marks the Bank’s return to funding energy generation in Vietnam.

 

Electricity consumption in Vietnam has been growing at 15 percent annually for the past several years and Trung Son’s 260 megawatts project will help meet the increased demand.

 

Hydropower is a vital source of clean energy for many countries and Vietnam is no exception. Trung Son is the first hydropower project the World Bank has financed in the country over the past decade. The financing is being provided through the IBRD (International Bank for Reconstruction and Development) lending window - with 27 years maturity and 6 years of grace period for loan repayment.