USUS$126Mln Contract Signed for Hai Phong Thermoelectricity Plant Project

USUS$126Mln Contract Signed for Hai Phong Thermoelectricity Plant Project

The State-run Bank for Investment and Development of Vietnam (BIDV), Vietnam’s second largest commercial bank yesterday signed a USUS$126 million supporting contract with four partners to construct a thermoelectricity plant in the northern Hai Phong port city.

The four partners include the Bank for Foreign Trade of Vietnam (VCB), the Industrial and Commercial Bank of Vietnam (ICB), the Bank for Agriculture and Rural Development of Vietnam (Agribank) and Vietnam Insurance Corp. (Bao Viet).

Of the total funding, USUS$30 million will come from BIDV, USUS$25.3 million from Agribank, USUS$25 million from VCB, USUS$30 million from ICB and USUS$15 million from Bao Viet.

The 600-MW Hai Phong thermoelectricity plant, which will be built in Tam Hung commune, Thuy Nguyen district and use materials mainly from coal in Hon Gai, and Cam Pha mines, is expected to start construction in May 2005 at a cost of VND9.67 trillion (USUS$615 million).

The project will be the largest thermoelectricity plant in the country with an annual output of 3.6 billion kWh, which is expected to meet the rising demand for electricity in the north.

The project’s primary investor is the Hai Phong Thermoelectricity Joint Stock Co., which has the largest chartered capital of VND3 trillion (USUS$191 million) and is owed by Electricity of Vietnam (EVN), Vietnam Coal Corp. (Vinacoal) and Bao Viet.

In another development, BIDV also signed a contract on March 7 to underwrite VND200 billion (USUS$12.7 million) worth of bonds issued by EVN.

Funds raised from these bonds will be invested in the 500-KV Danang-Ha Tinh transmission line.

• T.V