PVcomBank arranges credit and signs contract on May 23.
PVcomBank signed a contract on May 23 in Hanoi to provide credit of VND2 trillion ($89.4 million) for the operations of the Vung Ang 1 thermal power plant.
The project is part of the national energy development strategy to 2020 and vision to 2050. Three key groups are involved: Electricity of Vietnam (EVN), PetroVietnam (PVN), and Vietnam National Coal and Mineral Industries Holding Corporation Limited (Vinacomin).
PVN has made plans to generate energy to 2025 and targets to become the second-largest electricity producer after EVN and the largest gas-powered electricity provider. PV Power, the only subsidiary of PVN in the electricity industry, has responsibility for meeting targets.
To arrange capital for managing and operating the project and its construction, on April 14 PV Power selected banks to provide capital, agreeing to allow PVcomBank to arrange VND2 trillion ($89.4 million) and Vietcombank another VND2 trillion ($89.4 million).
PVcomBank has consulted and arranged capital on many large PVN projects, including electricity projects of PV Power, with capital totaling $2.7 billion.
PV Power was established in May 2007. By the end of 2015 its total equity was $974.16 million with 26 subsidiaries and associated companies. By May 17, 2016 it had provided 117.3 billion kilowatts to the national grid and earned total revenue of VND125.35 trillion ($5.6 billion).