Vietnam: Signing the credit and commercial loan contracts for Song Hau 1 Thermal Power Project

Vietnam: Signing the credit and commercial loan contracts for Song Hau 1
Thermal Power Project

According to information from PVN, on November 23, 2016 there was taken
place the ceremony of signing credit contract and commercial loan contract
with total value of USD 1.2 billion, between PVN and Korea Export-Import
Bank (KEXIM) and Consortium of Nine Foreign Commercial Banks with the clue
of Citibank for financing Song Hau 1 Thermal Power Plant (TPP) capacity of
(2x600) MW. This TPP is a key project in Power Planning VII invested by PVN
and allowed for development by special mechanism application to timely meet
high electricity need in southern region in period to 2020.

The total investment level of Song Hau 1 TPP is estimated about USD 2.05
billion, among that 70% as USD 1.43 billion - foreign loans including USD
987 million of Korea export credit loans (ECA) insured by Korea Commercial
Insurance Company (K-Sure) with a loan term of 17 years and USD 213 million
of Foreign Commercial loans with a loan term of 10 years.

Speaking at the ceremony, PVN General Director Nguyen Vu Truong Son high
appreciated goodwill and mutually beneficial cooperation between KEXIM,
Foreign Commercial Banks and PVN. Mr. Truong Son also expressed his hope
that in coming time PVN will continue to receive the cares from investors
for timely project development.

For his part, Mr. Youngpyo Hong, KEXIM Vice Chairman also expressed a
confidence that KEXIM, Consortium of the banks and PVN will succeed today
successes to have the good cooperation in coming time.

The success of capital arrangement for Song Hau 1 TPP is an evidence of
confidence of PVN financial ability from the international financial
organizations. This is a particularly notable event in capital market,
recent time, and also a step to impulse PVN to be ready to invest the
following projects for power production and business development - one of
the five major activities of PVN.

KEXIM is an official export credit agency supplying loan programs and
comprehensive insurance to support Korean companies in oversea production
and business activities.

Since foundation in 1976, KEXIM has actively supported Korea to promote
export and strengthen economic cooperation with the foreign countries.

K-Sure is a an official export credit supplying commercial and investment
insurance under Korean Ministry of Trade, Industry & Energy. Since
foundation in 1992, K-Sure has ceaselessly reinforced competitive ability of
Korea through promoting trade and oversea investment.

The foreign commercial banks as Citibank, Cathay United, DBS, SMBC, DZ BANK,
Credit Agricole, Mizuho and OCBC are companies which have a long development
history, financial resources and extensive operational capability in the
region and around the world.

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Link to Original Article:
http://nangluongvietnam.vn/news/en/electricity/signing-the-credit-and-commer
cial-loan-contracts-for-song-hau-1-thermal-power-project.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com