17 November 2005 - The Japan Bank for International Cooperation has signed its first credit contract for the Vietnamese power sector, which will see the construction of a thermal power plant.
The $66m loan, signed with the Electricity of Vietnam Corporation (EVN), has a maturity period of 15 years, including a grace period of three and a half years. It will have an annual interest rate of 1.76 per cent.
The EVN will now proceed with the construction of a $650m 600 MW thermal power plant, to be named Hai Phong.
The Japanese Bank has previously funded electricity sector development projects in Vietnam, but in the form of Official Development Assistance.
According to EVN, the company will sign further credit contracts with the bank to help finance the construction of two hydroelectric power plants in the country.