12 foreign banks funding major thermal power plant in Vietnam

Twelve foreign banks have reached credit contract to lend more than US$1.46 billion to Mong Duong 2 coal-fired power plant in northern Vietnam, the project’s operator said Monday.

The lenders are BNP-Paribas, Credit Agricole, HSBC, ING, Mizuho, Natixis, SMBC, Societe Generale, Standard Chartered, Unicredit, CIC of France, and DZ of Germany.

Work on the 1,240-megawatt plant, Mong Duong 2 in Quang Ninh Province, will start this August, operator AES-VCM Mong Duong Power Co. said.

The operator is a partnership of the US-based AES Group, Posco Power Co. of South Korea, and China’s CIC Group.

File photo shows the groundbreaking ceremony for thermo power plant Mong Duong 1 in the northern province of Quang Ninh in Nov. 2008

Mong Duong 2, which would be Vietnam’s largest private sector power plant, will be developed as a build-operate-transfer project.

The 12 lenders are expected to make the first disbursement for the US$1.95 billion plant next month.

South Korea’s Eximbank and the Korea Trade Insurance Corporation would provide commercial guarantees and political risk cover, together with the lenders, said the operator.

By Anh Thu, translated by Minh Tuong

Other news