Signing a contract to provide a credit package of over 5,000 billion VND for the 500kV Lao Cai - Vinh Yen transmission line project

EVN and VCB signed a contract to provide a credit package of VND5,472 billion for the 500kV Lao Cai - Vinh Yen transmission line project - Photo: VGP/Toan Thang

The 500kV Lao Cai - Vinh Yen transmission line project is an important national project, a key project of the energy sector, which has been approved by the Prime Minister in principle for investment and the investor.

This is a 500kV double-circuit power line project with a total length of about 229.5 km with a total of 468 pole foundation locations. The project passes through the territory of 4 provinces: Lao Cai, Yen Bai, Phu Tho and Vinh Phuc and is expected to be completed and put into operation before September 2, 2025.

The total investment of the project is over 7,410 billion VND; of which 80% is arranged from Vietcombank's loan capital and EVN's counterpart capital is 20%.

Once put into operation, the line will be able to transmit about 2,000 - 3,000 MW from hydropower plants in the Northwest region and neighboring provinces to the national grid. At the same time, the project will create a strong connection between regions in the power system, increase the ability to operate safely and stably for the national power system; reduce power loss in the transmission grid, and increase the efficiency of EVN's electricity production and business.

Speaking at the signing ceremony, Mr. Nguyen Anh Tuan, General Director of EVN said that during the preparation for investment and construction, the project received close attention and direction from the Prime Minister, ministries, branches and especially the funding attention of Vietcombank, thanks to which the project is being implemented according to the directed plan.

"In recent years, domestic commercial loans have always been an important source of capital to meet EVN's increasing demand for construction investment capital. With tens of thousands of billions of VND borrowed from domestic commercial banks and the support of other financial institutions, up to now, tens of thousands of MW of EVN's power plants have been put into operation and are being put into effective use," the EVN General Director emphasized.

Speaking at the signing ceremony, Deputy Governor of the State Bank of Vietnam Nguyen Ngoc Canh affirmed: EVN is a traditional, reputable large customer, so commercial banks, including Vietcombank, are ready to lend to serve production and business activities, especially investing in projects of important socio-economic significance, ensuring progress and efficiency.

Mr. Nguyen Ngoc Canh affirmed that the funding for the 500kV Lao Cai - Vinh Yen transmission line project is a clear demonstration of the position and strength of state-owned commercial banks in general and Vietcombank in particular in arranging large-value loans to finance important national projects.

Based on Vietcombank's financial capacity and good traditional relationship, EVN has chosen Vietcombank as the bank to arrange capital for the Lao Cai - Vinh Yen 500 kV transmission line project.

The credit facility is worth VND5,472 billion, will be disbursed over a period of 2 years, with a loan term of 15 years and competitive interest rates.

Source: https://baochinhphu.vn/ky-hop-dong-cap-goi-tin-dung-hon-5000-ty-dong-cho-du-an-duong-day-500kv-lao-cai-vinh-yen-102250311072109221.htm