Credit Agricole chips in for dam project

HA NOI — Credit Agricole Corporate and Investment Bank yesterday inked a long-term agreement worth US$178 million with Dakdrinh Hydropower Joint Stock Company to finance construction of the 125MW Dakdrinh Hydropower Plant.

The French banking group, acting as the sole mandated lead arranger and lender, arranged the 13-year term loan with provisions to finance up to 80 per cent of the plant's investment cost.

The loan will be insured by Nippon Export and Investment Insurance (NEXI) under its untied loan insurance programme and guaranteed by the Ministry of Finance.

The VND4.9 trillion (US$237.8 million) Dakdrinh Hydropower Plant is invested and operated by Dakdrinh Hydropower JSC, a subsidiary of PetroVietnam Power Corporation (PV Power).

Vu Huy Quang, general director of PV Power, said the plant was the biggest hydropower plant in central Quang Ngai and Kon Tum provinces and, together with the Dung Quat Economic Zone, played a critical role in the economic development of Viet Nam's central region.

Quang said the plant was one of the critical power plants noted in Master Power Plan No 6. Upon completion, which is estimated for late 2013, the plant is expected to generate an average power output of 540 million kWh per year.

"Therefore, Credit Agricole's financing plays an important role in helping keep construction of the power plan on schedule," he said.

Minoru Kaneko, chief representative of NEXI in Singapore, also said completion of the plant would help ease power shortage for enterprises operating in the region, including 400 Japanese companies, as well as contribute to Viet Nam's economic growth.

To date, Credit Agricole CIB has financed many projects in Viet Nam, including the Ca Mau-PM3 gas pipeline, Dung Quat Polypropylene Plant, hydropower plants, coal projects, sea port developments and other industrial projects. — VNS