Hung Hai Group and Tokyo-based BNP Paribas Bank branch signed in Hanoion April 20 a Nippon Export and Investment Insurance (NEXI) united termloan facility for the Nam Na 3 Hydropower project in the northern LaiChau Province 's Sin Ho District.
Speaking at theloan signing ceremony, Minoru Kaneko, chief representative of NEXISingapore which arranged the loan with Aozora Bank, Shizouka bank andNishi-Nippon City Bank, said this had been the first time the 7.1billion yen (30.9 million USD) loan provided for a business outsideJapan as NEXI often offers trade and investment insurance services tofacilitate and enhance Japanese companies' international business.
The 78MW project with total investment of 2.5 trillion VND (119 millionUSD) will annually provide more than 350 million kWh for thenational power grid, especially northern provinces .
The plant is expected to become operational in the second quarter of 2014.
Kaneko said Japan 's investment in Vietnam has remained high despite the economic crisis.
He said several Japanese companies saw huge potentials in the Vietnam market and will expand their businesses.
Kaneko added that the project was located in northern Lai ChauProvince , where rare-earth is extracted from the Dong Pao mine. Thematerial has been used in Japan 's automobile industry.
"The hydropower plant will supply power for the rare-earth projectwhich needs large power amounts in the province as a joint venturebetween the two countries," he said.
Tran Dinh Hai,chairman cum general director of Hung Hai Group, said they expect toreceive attention from NEXI to their other projects as an investor inover 10 hydropower projects./.