The loan agreement signing ceremony in Hanoi on November 10 (Photo: VNA) The project includes two turbines with a combined capacity of 480MW and hasa total investment of 9.22 trillion VND (406.7 million USD), 70 percent of whichis commercial loans, including the 70 million EUR loan from the AFD and the rest from domesticcommercial banks.
Once completed, the expanded plant, located in the northern province of HoaBinh, will help increase power generation for the northern region and reduceproduction costs. By optimising water flows, the annual electricity output willbe raised by about 495 million kWh, thus helping replace fossil fuel in powergeneration and cut down greenhouse gas emissions.
The new turbines will alsohelp ease the burden on existing ones, helping increase the lifespan of theequipment and save maintenance expenses.
The project started in January this year. Its first turbine is scheduled tobecome operational in the second quarter of 2024 and the second turbine in thefourth quarter of the same year.
Speaking at thesigning ceremony in Hanoi, AFD Director in Vietnam Herve Conan said following thesuccess of bilateral cooperation in renewable energy in recent years, the AFDand EVN decided to expand their partnership to the key project in energytransition in the country.
He added the loan signingmatches the Vietnamese Prime Minister’s strong statements made at the 26th UN Climate Change Conference of the Parties (COP26), demonstrates the EVN’s trust in the AFD,and marks the group’s ambition to sustainably develop energy - which also suitsthe AFD’s strategy that all of its projects be 100 percent compatible with the Paris Agreement./.
VNA
