EVN and VDB signed a cooperation agreement on financing State investment credit

EVN and VDB leaders sign cooperation agreement.

According to the cooperation agreement, EVN - VDB continuously identifies themselves as comprehensive partners of each other and wishes to cooperate in areas suitable to the parties' capacity, business strategy and strengths.

The parties commit to maintaining comprehensive, long-term, effective and mutually beneficial cooperation in related fields of operation towards the goals of EVN and VDB.

EVN and VDB jointly promote activities to support each other in expanding the development of each party's operations to exploit the strengths of the parties optimally.

In terms of scope, EVN and VDB are to cooperate in financing State investment credit capital to implement investment projects invested by EVN in the List of projects eligible for State investment credit capital (issued together with the Government's Decree on State investment credit) and under relevant legal provisions.

Between 2024 and 2030, the total amount of State investment credit capital that VDB plans to finance for EVN's projects (belonging to the List of important projects, prioritized for investment in Power Development Planning VIII) is about 50,000 billion VND.

Speaking at the ceremony, EVN General Director Nguyen Anh Tuan said that, EVN is a State economic group, assigned by the Party and Government to play a leading role in supplying electricity for the socio-economic development of the country.

In recent years, under the direction of the Government, the assistance of ministries, agencies, and the support of the people, EVN has focused on investing in tens of thousands of MW of power plants, hundreds of thousands of kilometers of transmission lines and transformer stations, with a budget of hundreds of thousands of billions of VND.

EVN has provided enough electricity for the country's economic and social development. By the end of 2023, EVN had supplied electricity to 100% of communes and 99.74% of households nationwide, of which the number of households was 99.60%.

In addition, EVN has provided electricity and sold electricity directly to 11/12 island districts nationwide.

Currently, EVN is implementing investment in supplying national grid electricity to the Con Dao district to start construction in 2024 and complete it in 2026.

With this impressive result, EVN has contributed to the successful implementation of the Resolution of the 13th National Party Congress and the 5-year Socio-Economic Development Plan 2021 - 2025 on agriculture, farmers, and rural areas, fulfilling the Government's commitment to hunger eradication, poverty reduction, ensuring national defense and security and national border sovereignty.

To meet the country's electricity demand, in addition to the investment participation of other enterprises, between 2025 and 2030, EVN must continuously promote investment in the construction of development projects, capital obtained from the enterprises), the EVN must mobilize external capital sources in many forms: Borrowing from source banks, power grids with a total annual investment value of up to hundreds of thousands of billion VND. With such a large investment demand, in addition to its own resources (such as basic depreciation capital, commercial investment capital domestic and foreign, borrowing from the State's investment credit capital...

According to the General Director of EVN, this cooperation will partly help EVN find new capital sources to finance construction investment projects in the following years, in the context that most domestic commercial banks have now exceeded the credit limit for EVN/EVN and related parties. On the other hand, borrowing capital from foreign credit institutions also faces many difficulties due to current legal regulations.

According to VDB General Director Dao Quang Truong: EVN is a large and prestigious customer of VDB. VDB highly appreciates EVN in the cooperation process. Up to now, the State's investment credit capital sources that VDB provides to EVN to invest in power projects have all been effective, without generating bad debts. The projects have been put into operation and made important contributions to the economic and social development of the country. VDB General Director affirmed: that VDB is committed to preparing long-term capital to meet sufficient resources for EVN's projects within the scope of credit cooperation. Will coordinate best to solve difficulties.

The EVN Power Plant and grid projects previously funded by VDB:

-Hydropower Plants: Son La, Lai Chau, Huoi Quang, Ban Chat, Pleikrong, Dong Nai 3 and Dong Nai 4...

- Thermal power plants: Vinh Tan 2, Duyen Hai 1...

- 500KV Grid Power Lines: Phu My - Nha Be - Phu Lam./.