Illustrative photo. (Photo: VNA)

Hanoi (VNA) - The Hoi Xuan Hydropower Plant in the northern central province of Thanh Hoa, which is set to use renewable energy to reduce dependence on thermoelectricity, will receive support from the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA).

The World Bank announced the news on January 18, adding that MIGA will issue a credit guarantee worth 239.7 million USD for a group of lenders including Goldman Sachs Bank and The Bank of Tokyo Mitsubishi. The 15-year guarantee covers the risk of non-honouring of sovereign financial obligations in respect of the government’s repayment guarantee to the lenders.

The guaranteed financial source will be used for the Xuan Hydropower Plant’s design, construction, operation and maintenance. The 102 MW hydropower plant will produce and sell power for Electricity of Vietnam.

Vice Chairman of Investment Banking in Asia Ex-Japan at Goldman Sachs Tim Leissner expressed his delight over collaboration with the Vietnamese Government and MIGA to meet the country’s increasing power demand.

Clean, renewable projects like the Hoi Xuan Hydropower Plant are crucial for Vietnam as the country continues its rapid GDP, he highlighted.

Meanwhile, MIGA Executive Vice President and CEO Keiko Honda said that together with financial resources, Vietnam is diversifying its energy mix to increase energy supply and security. MIGA is glad to be an important part of the process, she added.-VNA