VDB allocates VND50,000 billion in credit for EVN projects in Power Plan VIII

August 12, 2024 15:44

(PLVN) - On the morning of August 12, in Hanoi , Vietnam Electricity Group (EVN) and Vietnam Development Bank (VDB) signed a cooperation agreement on financing State investment credit capital.

Speaking at the signing ceremony, EVN General Director Nguyen Anh Tuan said that in order to meet the country's electricity demand, in addition to the investment participation of other enterprises, in the period of 2025 - 2030, EVN must continue to promote investment in the construction of power source and grid projects with a total annual investment value of up to hundreds of thousands of billion VND.

With such a large investment need, in addition to its own resources such as basic depreciation capital, development investment capital, capital obtained from equitization of enterprises, the Group must mobilize external capital sources in many forms: borrowing from domestic and foreign commercial banks, borrowing from the State's investment credit capital, etc.

According to the EVN General Director, this cooperation will partly help EVN find new sources of capital to finance construction investment projects in the following years, in the context that most domestic commercial banks have now exceeded the credit limit for EVN/EVN and related parties, and borrowing capital from foreign credit institutions also faces many difficulties due to current legal regulations.

Mr. Dao Quang Truong - General Director of VDB affirmed that VDB is committed to preparing long-term capital to meet the resources for EVN's projects within the scope of credit cooperation; will coordinate best to resolve difficulties and problems in the appraisal and disbursement process,... in the spirit of support, ensuring harmony of interests between the two parties...

The signing ceremony of the cooperation agreement on State investment credit funding between EVN and VDB is an important milestone in the cooperation relationship between the two sides, opening a new phase of cooperation, aiming to best exploit the potential of each side. This cooperation will help to open up the State investment credit capital according to the new regulations of the Government, contributing to promoting the socio-economic development of the country, improving people's lives, creating a premise for production and life sectors.

According to the Cooperation Agreement, EVN and VDB continue to identify themselves as comprehensive partners and wish to cooperate in areas that are suitable to the capacity, business strategy and strengths of the parties. The parties commit to maintaining comprehensive, long-term, effective and mutually beneficial cooperation in related fields of operation towards the goals of EVN and VDB.

Regarding the scope, EVN and VDB cooperate in financing State investment credit capital to implement investment projects invested by EVN in the List of projects eligible for State investment credit loans issued together with the Government 's Decree on State investment credit and in accordance with relevant legal provisions.

In the period of 2024 - 2030, the total amount of State investment credit capital that VDB plans to finance for EVN's projects (belonging to the list of important projects, prioritized for investment in the National Power Development Plan for the period 2021 - 2030, with a vision to 2050) is about 50,000 billion VND.

Source: https://baophapluat.vn/vdb-danh-khoan-tin-dung-50000-ty-dong-cho-cac-du-an-cua-evn-trong-quy-hoach-dien-viii-post521610.html