According to the deal, EVN and VCB will strengthen cooperation on credit provision. Specifically, VCB is to make timely arrangement for a domestic commercial loan of 14,500 billion for the Lai Chau Hydroelectricity Project slated for construction in late 2010, a loan of 102-107 million USD for EVN to pay the deposit of the EPC contract for Vinh Tan 2 Thermoelectricity Project, and loans for other projects invested by EVN and its affiliates. Besides, EVN and VCB will cooperate on credit payment services, including domestic and international money transfer, import payment and invoice.
VCB will act as a guarantee for EVN in specific contracts, such as capital guarantee, payment, tender, contract fulfillment, quality ensuring, advance payment and other services relating to foreign exchange, retail, corporate finance and stock market.
According to EVN, implementing power projects in the national electricity development plan in the 2006 – 2015 period with vision to 2025 needs 78 billion USD. Of the money, EVN should contribute 33 billion USD. Therefore, the group prioritizes strengthening credit cooperation with domestic and foreign banks to develop power generation and transmission works on schedule.
Authour: Minh Long