Vietnam's PV Power seeks $1.4bn loan for gas-power projects

PetroVietnam Power Corp (PV Power) has signed a deal to allow two banks to arrange a loan of $1.4bn for two gas-based power projects, the Vietnamese government said on October 5.

The loan will be used for the construction of Nhon Trach 3 and Nhon Trach 4 power projects that PV Power is proposing to develop. Techcombank and Military Bank (MB) were appointed as lead managers, the government said in a statement.

“With the support of capital arrangement from Techcombank and MB, Nhon Trach 3 and Nhon Trach 4 projects are expected to mark a major turning point for the national energy policy, contributing to the sustainable development of the country,” Nguyen Duy Giang, deputy general director of PV Power said.

According to PV Power, which is a unit of state-run PetroVietnam, Nhon Trach 3 and Nhon Trach 4 will have a capacity of 1.5 GW each and will be located in Dong Nai province’s Nhon Trach district. PV Power had last year signed a letter of authorisation with Citibank and Ingbank to arrange capital for the project.

In addition to Nhon Trach 3 and Nhon Trach 4, PV Power is also planning to develop Mien Trung 1 and Mien Trung 2 gas-based power projects. The two projects will be located in Quang Nam province’s Nui Thanh district and will have a capacity of 750 MW each.

The southeast Asian nation is promoting gas-fired power as it moves away from coal and oil-based generation. At present, Vietnam does not import any LNG but expects to begin buying the fuel next year, the country’s minister of industry and trade Nguyen Hong Dien said in a pre-recorded video address posted on YouTube on September 10 ahead of the 10th LNG Producer-Consumer Conference.