The state-owned Vietnam Oil and Gas Group (PetroVietnam) on Monday signed contracts to borrow more than US$795 million from a series of foreign banks to build a thermal power plant in the northern province of Thai Binh.
The loan agreements include a $330 million direct loan from Korea Eximbank (KEXIM), a $270 million KEXIM-guaranteed loan from the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Citibank, HSBC, Mizuho Bank, Standard Chartered Bank and Oversea-Chinese Banking Corporation (OCBC), and a $195.25 million loan from BTMU, China Development Bank, Citibank, HSBC, Mizuho Bank, OCBC and Standard Chartered Bank.
The loans will be used to purchase equipment including turbines, boilers and auxiliaries supplied by the consortium of Japan's Sojitz and Korea's Daelim for the Thai Binh 2 thermal power plant.
The plant, work on which was started by PetroVietnam in March 2011, is estimated to cost around $1.6 billion.
Once operational, it is expected to provide more than 6.7 billion kWh of electricity each year to the national grid.
Construction of the plant is scheduled to finish next year.