The Japan Bank for International Cooperation (JBIC) has signed a loan agreement for project finance amounting up to approximately USD 1,199 million (JBIC portion) with Van Phong Power Company Limited (VAN PHONG), a Vietnamese company invested in by Sumitomo Corporation, for the Van Phong 1 Coal-Fired Power Generation Project in Vietnam.
The loan is co-financed with Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, Oversea-Chinese Banking Corporation Limited and DBS Bank Ltd., and the Bank of China, with a total co-financing amount of approximately USD 1,998 million. The co-financed portion will be covered by insurance from Nippon Export and Investment Insurance (NEXI).
The project involves the build, own and operate a super critical coal-fired power plant with an installed capacity of 1,320 MW (two units of 660 MW each) in Van Phong district, Khánh Hòa Province in southern Vietnam. The electricity generated from this plant will be sold to Vietnam Electricity (EVN), the country's state-owned power utility, for 25 years.
