US blows wind into project’s sails

October 19, 2011 | 15:56

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America’s Export-Import Bank has agreed on a $1 billion credit package for a Vietnamese wind power development programme.

Under the letter of intent for the credit line that was signed Tuesday, the US bank would directly lend Vietnam Development Bank (VDB) or stand as underwriter for the Vietnamese bank to borrow money for financing a Mekong River Delta-based wind power project.

The package was included in a strategy of the US bank to strongly promote capital disbursement for renewable energy sector, according to US Eximbank’s vice chairman Raymond J.Ellis.

Ellis indicated that the bank would provide $890 million worth of credit for the sector within 2011, a strong jump from 2010’s $536 million.

The credit package comes as Vietnam is seriously affected by climate change and is increasingly encouraging environmentally-friendly technology.

The wind power project, based in southern Bac Lieu province, had been agreed to borrow loans through the US bank, with Citibank and JP Morgan offering to finance the project.

To Hoai Dan, general director for the project investor Cong Ly Company, indicated that his firm was borrowing loans from the US banks at an interest rate of 5.4 per cent per year. But the interest rate was expected to lower via further negotiations, said Dan.

Dan added that the project was using equipment supplied by the General Electric and his firm would negotiate further supplying contracts with the foreign firm.

By Hai Linh

vir.com.vn

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