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Thursday, April 25, 2024

PM asks JBIC to back restructuring of Nghi Son Oil Refinery

The Saigon Times

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HCMC – Prime Minister Pham Minh Chinh has reached out to the Japan Bank for International Cooperation (JBIC) asking the institution to play a pivotal role in the restructuring of Vietnam’s Nghi Son Oil Refinery.

During his meeting with JBIC Board Chairman and Managing Director Maeda Tadashi in Tokyo on December 18, PM Chinh proposed the bank continue its active involvement in the restructuring of the Nghi Son Oil Refinery project in the northern province of Thanh Hoa.

JBIC has a crucial role as the primary lender, especially in renegotiating loans with lower interest rates to reduce the financial burden and enhance project efficiency, he said.

Nghi Son is a cornerstone of Vietnam’s petroleum supply, responsible for providing one-third of the country’s domestic fuel needs. However, it has been grappling with financial woes, including substantial accumulated losses.

PM Chinh’s proposal is aimed at addressing these challenges, promoting financial sustainability, and improving the refinery’s overall operational effectiveness.

Tadashi said his bank would work with relevant stakeholders to facilitate the restructuring of the Nghi Son Oil Refinery project. This collaborative effort includes Nippon Export and Investment Insurance (NEXI), which will engage in negotiations to resolve project-related issues and seek optimal solutions in the interest of Vietnam.

During a separate meeting with Idemitsu Group’s leadership on December 17, PM Chinh urged the group and its partners to continue their efforts in restructuring the Nghi Son Oil Refinery project. He stressed the importance of enhancing management efficiency, refining operational processes, and embracing technology to reduce input costs and expedite the resolution of financial challenges.

On the same day, PM Chinh and his Japanese counterpart Fumio Kishida reached an agreement to establish a joint coordination group between the two governments, which is dedicated to advancing various projects, including the Nghi Son Oil Refinery, with a focus on boosting progress and efficiency.

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