Vietnam Electricity, the country’s state-run power behemoth, closed a US$338 loan deal Thursday with two Japanese banks to invest in a thermal power plant project in south-central Vietnam.
The loan will be provided by the Japan Bank for International Cooperation and the Bank of Tokyo-Mitsubishi for a term of 17 years, according to the national power utility, commonly known as EVN.
The credit package is backed by the Vietnamese government, and will be used to fund the ongoing construction of the Vinh Tan 4 thermal power plant in the south-central province of Binh Thuan.
Total investment for the facility, which broke ground in March, is estimated at more than $1.7 billion, according to EVN.
The plant is scheduled to be commissioned in 2017 to increase electricity supply for the south-central region.
Vinh Tan 4 is considered the country’s largest coal-fueled power plant, and is expected to have a supplying capacity of 7.3 billion kWh a year.