Of the total, JBIC has committed US$202.9 million with an annual interest rate of 3.12%, and the the Bank of Tokyo-Mitsubishi UFJ, Ltd (BTMU) has granted the remainder guaranteed by Japan’s Nippon Export and Investment Insurance (NEXI).
According to the EVN, the project has a total investment of nearly US$1.8 billion, and it is expected to provide about 7.2 billion kWh to the national power grid annually.
The 1,200MW plant, to be invested by the EVN Generation Corporation 3 (EVNGENCO 3), will be fuelled by imported coal, and use the traditional steam condenser technology.
At the signing ceremony, EVN General Director Pham Le Thanh appreciated the Japanese government’s effective assistance for power generation, transmission and distribution in Vietnam.
Japanese-invested power projects have so far made up nearly 20% of the EVN’s output and 12% of the country’s total.
Construction started on Vinh Tan 4 power plant on March 9, 2014. The first turbine is scheduled for operation in the fourth quarter of 2017 and the second, by the end of the third quarter of 2018.