EVN borrows $1.13 bln for LNG-fired power plant in central Vietnam

State utility Vietnam Electricity (EVN) is borrowing about VND29.57 trillion ($1.13 billion) from four state-owned commercial banks to finance the component 1 of Quang Trach II LNG-fired power plant project in central Vietnam.

An agreement to this effect was signed on Friday by EVN and the consortium comprising the Vietnamese Big 4 Vietcombank, VietinBank, BIDV and Agribank, with Vietcombank acting as the lead arranger.

Located at the Hon La Economic Zone in Quang Tri province, the project will have a total capacity of 1,500 megawatts from two 750 MW units, using combined-cycle gas turbine technology.

The project has been assigned to EVN as the investor, with total investment capital exceeding VND52.49 trillion ($2 billion), including 20% equity and 80% commercial loans.

It is divided into two components: component 1 - the power plant - with an investment of VND40.12 trillion ($1.53 billion); and component 2, covering LNG storage and port facilities worth VND11.8 trillion.

The project was converted from a 1,200 MW coal-fired power project worth VND48.16 trillion ($1.83 billion), which received the Prime Minister’s in-principle approval in 2021.

It was originally planned at the Hon La Economic Zone in the Quang Trach Power Center, Quang Binh province (now part of Quang Tri). Quang Binh was merged with Quang Tri to form the new Quang Tri province last July.

The adjustments, made to align with the National Power Development Plan VIII issued in May 2023, shift the project to gas in a bid to curb toxic emissions and protect the environment.

It is expected to enter commercial operation in 2028-2029, with full completion slated for 2030.