HCMC – PetroVietnam Power Corporation (PVPower) on October 4 held a ceremony to announce the selection of Techcombank and the Military Commercial Joint Stock Bank (MB) to make financial arrangements for its Nhon Trach 3 and 4 liquefied natural gas (LNG) projects worth a total of US$1.4 billion.
These are the first LNG projects in the local market where their developer PVPower is taking charge of capital arrangements without the Government’s guarantees.
They are also the first LNG projects in Vietnam and are expected to supply clean energy meeting international standards and create a turning point for the national energy security policy. The two power plants serve as load centers in the south, with the three major load areas located in HCMC, Dong Nai and Ba Ria-Vung Tau.
Earlier, PVPower had proactively worked with banks and financial institutions at home and abroad to find a strategic bank partner to work out appropriate measures to arrange funding for the projects. PVPower then selected Techcombank and MB to jointly prepare bidding documents, negotiate loan terms linked to export credit, offshore loans and asset management, as well as periods that need financial measures during the preparation, implementation and operation.
The coordination of the two banks is expected to help PVPower remain proactive in arranging funding sources and ease the burden of the State’s public debt in the development of national energy.
Nguyen Duy Giang, vice general director of PVPower, said LNG is an optimal energy source for Vietnam to head toward clean energy on a large scale, ensure national energy security and a dust-free environment for the next generations.