Electricity of Vietnam (EVN) has signed loan agreements with four Vietnamese banks to secure 1.8 trillion dong (US$112.5 million) for construction of the 330-MW Se San 4 hydroelectric project.
State-run Vietnam News Agency said Vietnam Agriculture and Rural Development Bank would provide the largest share of the loan, 763 billion dong (US$47.7 million). The remainder of the loan will be supplied by Vietnam Industry and Commerce Bank, Vietnam Foreign Trade Bank, and Vietnam Investment and Development Bank.
Se San 4 is being built on the Se San River in Gia Lai and Kon Tum provinces.
EVN announced a month ago it is selling 900 billion dong (US$56.4 million) in five-year bonds to raise money for Se San 4 and two other hydropower projects, 320-MW Ban Ve and 163-MW An Khe Kanak. (HNN 7/19/06)
The bonds are being sold through Vietnam’s stock exchange and carry an annual coupon of 9.5 percent during the first year. Proceeds, underwritten jointly by Australia and New Zealand Banking Group and Saigon Securities Inc., are to finance construction of the three plants.
Investment for the 5.54 trillion dong (US$346.3 million) Se San 4 has been secured mainly through bank and foreign loans, with EVN contributing about 30 percent of the cost.
