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US$470 million goes to Nhon Trach 2 power project   2010-07-27 - SGT

Citibank Vietnam last Friday announced to complete the arrangement of a US$470 million credit for PetroVietnam Nhon Trach 2 power plant project with the support of foreign export credit agencies.

The Export and Agency Finance Division, part of Citibank’s Global Transaction Services, located in Frankfurt, Hong Kong, Tokyo and Singapore, is the sole mandated lead arranger. The debt is available in the U.S. dollar and euro.

The 12-year financing is guaranteed by Vietnam’s Ministry of Finance and insured by the German Export Credit Agency of Euler Hermes Kreditversicherungs AG (Hermes) and Japanese Export Credit Agency Nippon Export and Investment Insurance (NEXl).

The Hermes-supported loan is about US$295 million while the NEXI-supported facility will provide the project with approximately US$175 million of financing.

The capital will be used for financing of deliveries and services for construction of Nhon Trach 2 gas-fired combined cycle power plant with capacity of more than 750MW in the PetroVietnam’s Nhon Trach Thermal Power Center in the southern province of Dong Nai.

Hoang Xuan Quoc, CEO of PetroVietnam Nhon Trach 2 Power Joint Stock Company, said in the statement that the Nhon Trach 2 power plant is part of Vietnam’s current national electricity master plan. After the first synchronization by end-2010, the plant is scheduled to provide electricity in March 2011.

The Nhon Trach 2 Power plant will be fuelled by natural gas produced off the coast of Vietnam’s southern region. The plant is environmentally friendly and is being registered as a Clean Development Mechanism (CDM) project.

"By March 2011, electricity generated from this plant will contribute to meeting the increasing power demand throughout the country and to consolidate the position of PetroVietnam as the second leading power generation entity in Vietnam after EVN," he said.

PetroVietnam Nhon Trach 2 Power Joint Stock Co. is a subsidiary of PetroVietnam with 62.8% ownership. Other shareholders are State-owned corporations such as Electricity of Vietnam (EVN), Vietnam Posts and Telecommunications (VNPT), Vietnam Coal and Mineral Industries Group (Vinacomin), and Bank for Investment and Development of Vietnam (BIDV).

Natural gas for the plant will be supplied by PetroVietnam Gas Corp (PV Gas) via a pipeline. EVN will buy all electricity produced by the plant through the 220kV national grid.

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