EVN to borrow over $3 bln for power projects

News/Hanoi - The Electricity of Vietnam (EVN) will borrow more than US$2 billion from ODA sources and $1 billion in commercial loans for its major power projects in 2012.

The group plans to sign with the World Bank a $378.9 million loan, a $330 million loan for improving the efficiency of the distribution network and a $200 million  loan for the reform of the power sector.

It will also conduct negotiations with the German Reconstruction Bank (KfW) on a $330 million credit for the O Mon Power Plant No. 4.

EVN will also seek capital from the KfW for a 300 million EUR power transmission network investment programme, a 200 million EUR Smartgrid development plan and the $120 million  second phase of a project to increase energy efficiency in rural areas.

EVN said it will urge the Asian Development Bank to arrange for $1 billion loan from the WB, KfW, the French Development Agency (AFD) and the Japan International Cooperation Agency (JICA) so that it can upgrade and expand the power distribution network.

The new capital sources are expected to allow the group to put into operation eight turbines in four hydropower projects with a combined capacity of 1,373MW and start the construction of four thermo-electric power plants with a combined capacity of 2,390 MW.

The group will also prepare for the infrastructure of Ninh Thuan nuclear power centre.