The Vietnam Electricity (EVN) and the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) signed a credit agreement for a 500kV Lao Cai – Vinh Yen transmission line project on March 10 in Ha Noi.

Representatives from both organizations were present to witness the signing of the credit agreement for the Lao Cai - Vinh Yen 500kV transmission line project

This national key project, the Lao Cai - Vinh Yen 500kV transmission line, spans approximately 229.5 km and passes through four provinces: Lao Cai, Yen Bai, Phu Tho, and Vinh Phuc.

The total investment for the project is over VND7.41 trillion, with 80% of the funding coming from Vietcombank's loan and the remaining 20% from EVN's counterpart capital.

Once operational, the transmission line will be capable of transmitting approximately 2,000 - 3,000 MW from hydropower plants in the Northwest region and neighboring provinces to the national grid.

Mr. Nguyen Viet Cuong, Deputy General Director of Vietcombank (right), and Mr. Nguyen Xuan Nam, Deputy General Director of EVN (left), represented the two organizations at the signing ceremony of the credit agreement for the Lao Cai - Vinh Yen 500kV transmission line project, valued at over VND5.4 trillion

Over its 60 years of operation, Vietcombank has provided credit for many large energy projects invested by EVN, including the Son La Hydropower Plant (with a total credit value of VND17.5 trillion, Vietcombank contributing VND6 trillion), the Lai Chau Hydropower Plant (with a total credit value of VND14.5 trillion, Vietcombank being the main capital arranger and contributing VND6.5 trillion), the Hoa Binh Hydropower Plant Expansion (Vietcombank independently contributing VND4 trillion), and the Quang Trach 1 Thermal Power Plant (Vietcombank independently contributing VND27.1 trillion).

Thanks to its strong financial capacity and longstanding relationship with EVN, Vietcombank was selected as the bank to arrange funding for the Lao Cai - Vinh Yen 500kV transmission line project. The credit line, worth VND5.47 trillion, will be disbursed over two years, with a loan term of 15 years at competitive interest rates.

The signing of the credit agreement for the Lao Cai - Vinh Yen 500kV transmission line project marks another important milestone in the long-standing cooperation between Vietcombank and EVN. It ushers in a new phase of collaboration, aiming to maximize the potential of both parties and contribute to enhancing energy security, reinforcing the country's financial and monetary stability, and supporting the sustainable development of the nation's economy.

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