Gas, New Projects

Financing for Vietnam gas fired plant confirmed

13 June 2003 – Project financing of $300m has been raised for a new gas fired power plant to be constructed in an industrial area, some 80 km southeast of Ho Chi Minh City, Vietnam, it was announced Thursday.

Japanese trader Nissho Iwai Corporation said it has signed an agreement with a group of financial institutions, including Japan Bank for International Co-operation, on financing the project, which will cost $400m in total.

The project is promoted by Nissho Iwai, Kyushu Electric Power Co., Britain’s BP PLC and a Singapore concern. The $300m in project finance will be provided by the group comprising such institutions as JBIC, the Asian Development Bank and Mizuho Corporate Bank.

The 716.8 MW plant will use Vietnamese-made natural gas and is scheduled for commissioning in 2004. It will supply electricity to Vietnam National Electrical Power Corporation under a 20-year agreement.