AFD provides non-Government guaranteed loan of 80 million EUR for EVN

The Vietnam Electricity Group (EVN) and the French Development Agency (AFD) on March 28 signed a credit agreement with a non-Government guaranteed loan worth 80 million EUR (87.8 million USD) to implement the southern Vietnam power distribution project invested by EVN’s Southern Power Corporation (EVN SPC).

The signing ceremony was attended by stakeholders from EVN, AFD, Committee for Management of State Capital at Enterprises, representatives from the Ministry of Finance, the State Bank of Vietnam among others.

Delegates at the event agreed to fulfil its huge political tasks assigned by the Party and the State, the EVN and its units have rolled out investment activities to expand its electricity distribution network.

The southern Vietnam power distribution project comprises 33 sub-projects, covering Ben Tre, An Giang, Binh Thuan, among others.

These sub-projects are included in the electricity planning scheme for 2016-2025 with a vision towards 2035, approved by the Ministry of Industry and Trade.

According to a feasibility report, ratified by the EVN SPC, all of the sub-projects show economic and financial feasibility. With combined investment capital of over 196 million USD, the sub-projects are scheduled to last from 2022 to 2024.

In his remarks, Conan said such kind of project will help the EVN and Vietnam achieve the target of low-carbon emissions and sustainable development, implement the Paris agreement on climate change and fulfil its commitment of net zero emissions by 2050 made at the 26th UN Conference of Parties (COP26) in Glasgow.

Since 2017, AFD loans have played a part in the Vietnamese group’s investment, meeting requirements for electricity supply in socio-economic development. The AFD has pioneered in providing direct loans for the EVN's power projects without the government guarantee./.