The Japan Bank for International Cooperation has signed a loan agreement with Vung Ang 2 Thermal Power Limited Liability Company (VAPCO) for the construction of a coal-fired power plant in Vietnam. The project financing amounting to US$636 million is being provided under JBIC’s Growth Investment Facility.
The loan is co-financed with private financial institutions as well as the Export-Import Bank of Korea (KEXIM). The total co-financing amount is US$1.767 billion. VAPCO shareholders include Mitsubishi Corporation.
VAPCO will build, own,and operate an ultra-supercritical coal-fired power plant with an installed capacity of 1,200MW (two units of 600MW each) in the Vung Ang district, Ha Tinh province in central Vietnam. The electricity generated from the plant will be sold to Vietnam Electricity (EVN), the country’s state-owned power utility company, for 25 years.
In its Export Strategy for Infrastructure Systems, revised in July 2020, the Japanese government expressed its intention to expand the export of infrastructure systems, including the design, construction, operation, and management of infrastructure, while increasing investments in overseas businesses.