NPT General Director Mr. Nguyen Manh Hung and General Director of Citibank Vietnam Mr. Brett Krause, at the signing ceremony on May 25.
This is the first export credit package for Vietnam’s National Power Transmission Corp (NPT).
The 13-year loan will be guaranteed by the Vietnamese Ministry of Finance and be insured by Japanese Nippon Export and Investment Insurance (NEXI).
The financing will support four NPT power transmission projects, including the 500-kV Vinh Tan-Song May and 500-kV Long Phu-O Mon power lines, and the 220kV/500kV Vinh Tan and 220-kV Nhon Trach transformer stations.
These power transmission projects are expected to help transmit electricity from power plants to the national grid, and provide energy to industrial parks in Dong Nai, Binh Duong and Ho Chi Minh City.
“Due to its key task of managing the entire power transmission network in Vietnam, NPT is in desperate need of capital to invest in its transmission projects. This Citibank financial package marks an important point in NPT’s development,” NPT General Director Mr. Nguyen Manh Hung said at the signing ceremony.
Mr. Brett Krause, General Director of Citibank Vietnam, said, “Transmission projects are of significant importance in the national power grid, and determine the vitality of the national power system.”
Vietnam’s power demand is forecast to grow by 14.2% per year in the 2011-2015 period, said Deputy Director of the Electricity of Vietnam Group (EVN), Mr. Dang Hoang An.
An noted that the country’s power output is expected to rise from around 100 billion kWh in 2010 to 194 billion kWh per year by 2015. The figure is forecast to reach 329 billion kWh per year by 2020 and 695 billion kWh per annum by 2030.