EVN permitted to exceed loan ceiling to develop Quang Trach 1 Thermal Power Plant

EVN was permitted to take up a special loan for Quang Trach 1 Thermal Power Plant (Illustration: Vinh Tan 1 Thermal Power Plant)

Quang Trach 1 Thermal Power, invested by Electricity of Vietnam (EVN), has a total investment capital of VND42.02 trillion ($1.83 billion). It will require loans of VND27.1 trillion ($1.18 billion), which will be arranged by Vietcombank after Vietinbank, BIDV, and Agribank have withdrawn.

Previously, EVN has been hard-pressed to mobilise loans because according to regulations, Vietcombank cannot issue loans exceeding 15 per cent of its equity. Meanwhile, EVN cannot mobilise loans exceeding 25 per cent of its equity, imposing an upper limit of VND37.4 trillion ($1.63 billion).

This special dispensation for EVN is only applicable for Quang Trach 1 Thermal Power Plant. Vietcombank will have to be in charge of appraising the project, as well as EVN’s ability to pay the debt and the associated risks.

Quang Trach 1 thermal power plant, a component project of Quang Trach Power Centre, began construction in 2011, initially invested by PetroVietnam. In 2017, the prime minister permitted EVN to replace PetroVietnam as the developer due to slow implementation. Covering 199 hectares in Quang Dong commune, Quang Trach district, the plant was expected to have a total capacity of 1,200MW and provide 8.4 billion kWh of electricity per year.

Along with Quang Trach 1, EVN will invest approximately $2.1 billion in Quang Trach II Thermal Power Plant in Hon La Economic Zone.

The project has a capacity of 1,200MW with a total preliminary investment value of approximately VND48.156 trillion ($2.1 billion).

Of this, the firm’s equity will be more than VND9.634 trillion ($418.87 million), accounting for 20 per cent of the total investment value, while its debts will be roughly around VND38.525 trillion ($1.68 billion).

The first unit of Quang Trach II Thermal Power Plant is expected to go into commercial operation in 2028, and the second unit will begin operation in the following year.