On October 9 afternoon, in Hanoi, Mr. Ayumi Konishi, National Director, Chief of Representative Office of Asian Development Bank (ADB) in Vietnam and Mr. Nguyen Van Giau, the Governor of the Vietnam’s Bank of State, signed an Agreement on financing Mong Duong Thermal Power Company No.1 Project with the total value of USD 931 million.
The financing Agreement is divided into 2 loans for 2 periods. Loan No.1 is USD 28 million for the project signed by ADB’s representative and Mr. Pham Le Thanh, the President of Vietnam Electricity (EVN). Estimatedly, Loan No.2 with the value of USD 903 million will be signed in 2009.
In 2005 and 2006, ADB financed Northern Power Transmission Project and Northern Power Transmission Project extension with the total investment of USD 480 million from ordinary credit (OCR) capital resource in order to expand and upgrade the 500kV and 220kV power transmissions in the North. At present, ADB continues financing Mong Duong Thermal Power Company No.1 Project and the loan has the biggest value ever since of nearly USD 931 million from OCR capital resource.
Mong Duong Thermal Power Company No.1 has the capacity of 1,000MW invested by EVN in an effort to meet the demand of generation development requested in Decision No.1195/QĐ-TTg dated November 9, 2005 of the Prime Minister on urgent power constructions to fight against the possible serious lack of power in the coming time. On operating (expectedly in June 2012), Mong Duong Thermal Power Company No.1 will play a part in raising the capacity of Vietnam’s power system by 2,200MW, minimizing the dependence on the hydropower energy, increasing the weight of thermal power generation in the system, helping Vietnam’s power system stably supply power in dry season, and boosting the economic development of the country.
Tran Phuong