Germany's KfW Development Bank and Vietnam Electricity (EVN) have agreed on terms for the expansion of the Tri An Hydropower Plant, with the plan to finance the project directly through KfW, circumventing the need for government guarantees.
In a determined push to bolster Vietnam's renewable energy capacity, Frank Bohnet, East and Southeast Asia regional director for Germany's KfW Development Bank, and Nguyen Xuan Nam, deputy CEO of Vietnam Electricity (EVN), have reached an understanding to proceed with the expansion of the Tri An Hydropower Plant.
Since 2022, these parties have engaged in several negotiation rounds, achieving consensus on the core loan conditions for the Tri An Hydropower Plant extension. The subsequent loan agreement is scheduled for signing in November 2023, fortuitously aligning with the Vietnam-Germany intergovernmental talks on developmental cooperation.
Expressing gratitude for KfW and the German Federal Government's persistent support, Nguyen Xuan Nam said, "Their preferential Official Development Assistance (ODA) loans, funnelled into various transmission, distribution and wind power projects in Vietnam, have been instrumental in maintaining a stable power system and promoting sustainable energy generation."
"We anticipate finalising the Trị An Hydropower Plant extension loan agreement by early November 2023. Additionally, we seek KfW's ongoing aid in procuring ODA loans for upcoming ventures."
In step with its commitment to sustainability, EVN plans to use the German ODA funds for multiple initiatives, including the Green Energy Project to link renewable energy endeavours in the southern provinces, a renewable energy project for enhancing power grid infrastructure in Central Vietnam, and the second phase of the urban grid project.
Bohnet said, "EVN remains a critical partner for KfW in Vietnam. We pledge unwavering support and commitment to collaborate on priority projects that cater to the interests of both parties."
These projects encompass ODA initiatives linked to the transmission and distribution grid and non-guaranteed government loan ventures like the Tri An Hydropower and Bac Ai Pumped-Storage Hydropower Plant expansions.
Since 2009, KfW's steadfast commitment to EVN has resulted in ODA and non-government guaranteed direct loans totalling about €1.5 billion.
This portfolio comprises five completed ODA projects worth approximately €427 million, four ongoing ODA projects totalling around €464.5 million, five proposed ODA projects, and three new projects being financed by non-guaranteed government direct loans, amounting to an estimated €800 million.
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