HCMC – The Vietnam Electricity Group (EVN) and the French Development Agency (AFD) have signed a credit facility agreement worth 70 million euros, or VND1.9 trillion, without a government guarantee, for the former’s Hoa Binh hydropower plant expansion project.
The project, which is located in the northern province of Hoa Binh, has two generators with a combined capacity of 480MW and costs a total of VND9.22 trillion, 70% of which is sourced from commercial loans, including the 70-million-euro loan from AFD and the rest from loans at domestic commercial banks.
The first generator is set to begin electricity generation in the second quarter of 2022, while the second will be put into operation in the fourth quarter of 2024.
Once in place, the expanded hydropower plant will help increase power generation for the northern region and reduce production costs.
Speaking at the signing ceremony in Hanoi City on November 10, AFD Director in Vietnam Herve Conan said that following the success of their cooperation in renewable energy over the past few years, AFD and EVN decided to expand their partnership to the critical project of energy transition in the country.
The signing is in line with the Vietnamese prime minister’s statements made at the 26th UN Climate Change Conference of the Parties (COP26), demonstrating EVN’s sustainable energy development goal.
Over the past 20 years, EVN and AFD have signed several loan agreements with and without government guarantees for power-related projects.