The Japan Bank for International Cooperation signed today a buyer's credit (export loan) agreement totaling up to about USD202 million (JBIC portion) with Vietnam Electricity (EVN). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU; lead arranger), with the overall cofinancing amount reaching about USD338 million. Nippon Export and Investment Insurance (NEXI) will provide insurance for the portion cofinanced by BTMU.
This loan is intended to finance the procurement of a set of steam turbines and related equipment produced by Toshiba Corporation from a consortium, including Mitsubishi Corporation and Doosan Heavy Industries and Construction in Korea, as EVN will build a super critical thermal power plant (600 MW×2 units) in Binh Thuan Province, Southern Region of Vietnam.
In Vietnam, demand for electricity has been increasing sharply against the backdrop of robust economic growth. However, the construction of power plants has been lagging behind growing demand, which has resulted in tight power supply. Especially, it is an urgent challenge to reduce power supply shortages in the Southern Region. To overcome this situation, the Vietnamese government placed national priority on the expansion of power supply capacity in the Seventh National Power Development Master Plan. Under this Plan, it has been pushing forward the construction of power plants that make effective use of the country's own resources. Supporting the export of a set of steam turbines and related equipment with this loan is expected to contribute to maintaining and strengthening the international competitiveness of Japanese industries as well as economic development in Vietnam through a stable supply of electricity.
As Japan's policy-based financial institution, JBIC will continue to support the expansion of exports by Japanese companies to Vietnam as well as opportunities for Japanese companies to participate in the country's projects by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.