EVN signs a non-governmental guaranteed loan worth €80 million with AFD

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VIETNAM, March 29 –

The signing ceremony of the credit facility agreement. — Photo VNA/VNS

HÀ NỘI — The Vietnam Electricity Group (EVN) and the French Development Agency (AFD) signed an agreement on March 28 on a non-government guaranteed loan worth 80 million euros ($87.8 million dollars) to implement the South Việt Nam power distribution project invested by EVN’s subsidiary – the Southern Power Corporation (EVN SPC).

The South Việt Nam Power Distribution Project includes 33 sub-projects, located in Bến Tre, An Giang, Bình Thuận, Long An, Sóc Trăng, Trà Vinh, Cà Mau, Bình Phước, Đồng Nai, Đồng Tháp, Bạc Liêu, Kiên Giang provinces and the city of Cần Thơ.

These sub-projects are included in the 2016-2025 electricity planning scheme with a vision for 2035, approved by the Ministry of Industry and Trade.

The EVN SPC approved the feasibility reports of all the sub-projects. With a combined investment capital of over VN4.48 trillion ($195.9 million), the sub-projects are expected to be implemented from 2022 to 2024.

Dương Quang Thành, chairman of the board of directors of EVN, said the 80 million euro loan was to help extend the electricity network in the south and facilitate the use of renewable energy sources which were developing strongly. in the southern provinces.

He underlined the active cooperation and support of AFD and European partners, which enabled EVN to fulfill its role as a driving force in the domestic energy sector, thus contributing to the national energy transition programme.

In his address, AFD Director in Việt Nam, Hervé Conan, said the electricity transmission project will help EVN and Việt Nam achieve the goal of low carbon emissions and sustainable development, to implement the Paris agreement on climate change and fulfill its commitment to net zero emissions by 2050 at the 26th United Nations Conference of the Parties (COP26) in Glasgow.

The signing of the credit agreement would also pave the way for future cooperation between EVN and AFD, not only in the field of financing not guaranteed by the State but also at the level of EVN member companies, in transmission and distribution of electricity.

AFD is committed to helping EVN modernize its network and infrastructure in a smarter, more flexible and modern way, he underlined.

Since 2000, EVN and AFD have been cooperating through state-guaranteed and non-state-guaranteed loans for electricity projects.

AFD has so far committed some €350 million in non-state guaranteed loans to EVN.

Since 2017, AFD loans have contributed to the Vietnamese group’s investment, meeting the electricity supply needs of socio-economic development. AFD has paved the way by providing direct loans for EVN energy projects without government guarantees. —VNS

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