EVN, German bank discuss loan agreement for hydropower plant project

Vietnam Electricity (EVN) Group and Germany’s KfW Development Bank on July 26 discussed a loan agreement for Tri An Hydropower Plant Expansion Project, expecting to sign the deal in November.

At the working session between EVN and KfW Development Bank

The signing of the loan agreement is expected to take place on the occasion of the Government-level negotiation meeting on Vietnam-Germany development cooperation.

The Tri An Hydropower Plant Expansion Project is the first in which KfW is planning to provide a direct loan to EVN without government guarantee.

Since 2022, after multiple exchanges, the two sides have basically agreed on fundamental and most important borrowing conditions of the loan agreement.

At the meeting in Hanoi with Frank Bohnet, Director for East Asia - Southeast Asia of KfW, EVN Deputy General Director Nguyen Xuan Nam expressed his hope that the two sides will make efforts in harmonising procedures to accelerate the signing.

EVN is also preparing for some new Official Development Assistance (ODA) loans, which are expected to use the ODA funding from the German government, covering green energy and renewable energy, he said, noting his hope that KfW will continue to support and arrange loans for these new ODA projects.

For his part, Bohnet affirmed that EVN is one of KfW's most important partners in Vietnam, stressing KfW commits to closely coordinating with EVN to further implement priority projects of both parties in the time ahead, including both ODA projects and those without government guarantee.

Since 2009, KfW has committed ODA and non-Government guaranteed loans worth 1.5 billion EUR (1.66 million USD) to EVN./.

VNA