Signing the credit contract for the 500kV Lao Cai - Vinh Yen transmission line project

The leaders of EVN and Vietcombank signed the credit agreement in the presence of the delegates.

Speaking at the ceremony, Deputy Governor of the State Bank of Vietnam Nguyen Ngoc Canh stated that the electricity sector plays a crucial role and has always received attention and support from the Party and the Government to ensure its development ahead of demand, serving the country’s economic and social growth. In recent times, the banking sector has implemented comprehensive credit solutions to facilitate power enterprises' access to credit sources for infrastructure and grid development.

The 500kV Lao Cai - Vinh Yen transmission line project, invested in by EVN, holds particular importance in transmitting power from hydropower plants in the Northwest region and neighboring provinces to the national grid, enhancing the system’s safety and stability. The project has been approved for investment policy by the Prime Minister and was designated an approved investment under Decision No. 1274/QĐ-TTg, dated October 26, 2024.

The credit financing for the 500kV Lao Cai - Vinh Yen transmission line project is a testament to the strength of state-owned banks, and Vietcombank in particular, in arranging large-scale loans to finance the country’s key energy projects. At the same time, it sets a positive precedent by encouraging and promoting the proactiveness of domestic investors, reducing dependence on foreign loans. This aligns with the Party and the Government’s policy of fostering self-reliance, leveraging internal resources as the fundamental, strategic, long-term, and decisive factor in national development.

The Deputy Governor of the State Bank of Vietnam urged Vietcombank and EVN to coordinate closely and comprehensively cooperate to ensure the timely provision of capital for the project. This will help accelerate construction progress, enhance the quality of project completion, and surpass the set objectives.

At the ceremony, Deputy Minister of Industry and Trade Nguyen Hoang Long expressed his joy and congratulated EVN and Vietcombank on signing the credit contract for the 500kV Lao Cai - Vinh Yen transmission line project. He highlighted that this agreement symbolizes the strong cooperation between the two leading state-owned enterprises.

The Deputy Minister acknowledged EVN’s continuous growth and its remarkable achievements in key projects, ensuring a stable electricity supply for national development. He expressed his hope that in the coming years, EVN and Vietcombank would further strengthen their comprehensive cooperation to participate in projects under Power Development Plan VIII, ensuring double-digit electricity growth and contributing to the nation’s advancement in this era of expansion.

Vietcombank’s General Director, Le Quang Vinh, stated: “Vietcombank is honored and proud to be a long-standing, reliable partner of EVN in the development journey of both parties in the past and the future. With a continuously strengthened financial foundation and extensive experience in capital provision, Vietcombank has participated in numerous key energy sector projects, such as Sơn La Hydropower, Lai Châu Hydropower, Hòa Bình Hydropower (expansion), and Quảng Trạch 1 Thermal Power Plant.”

Based on Vietcombank’s financial capacity and the strong traditional partnership between the two entities, EVN has chosen Vietcombank as the bank to arrange financing for the 500 kV Lao Cai - Vinh Yen transmission line project.

According to Vietcombank’s General Director: With the spirit of “running while queuing", the specialized units of EVN and Vietcombank have closely coordinated, shared information, provided professional consultations, assessed documents, and completed the financing arrangement in a very short time (approximately one month).

To date, both parties have completed internal approval processes to proceed with signing the credit agreement, enabling a swift disbursement of funds for the project. The credit facility amounts to VND 5.472 trillion, with a loan term of 15 years and a highly competitive interest rate. Both sides will work together to accelerate disbursement according to the approved schedule.

Speaking at the ceremony, EVN General Director Nguyen Anh Tuấn stated: To meet the strong economic growth over the years, EVN has invested hundreds of trillions of VND in building, upgrading, and renovating power generation and transmission projects. In 2024, EVN’s investment is set at VND 112 trillion, with a projected investment of VND 109 trillion in 2025. With an average annual load growth of 10-12%, the corporation must urgently invest in the construction, completion, and commissioning of new power generation and transmission projects by Power Plan VIII, as approved by the Prime Minister.

The 500 kV Lao Cai - Vinh Yên transmission line project is invested by EVN, with a total investment of over VND 7.410 trillion. Of this, 80% is financed through a loan from Vietcombank, while 20% comes from EVN’s counterpart funding.

Given the importance and urgency of the project, at the beginning of 2025, the Prime Minister issued Directive No. 01/CT-TTg on January 3, 2025, regarding proactive solutions to ensure sufficient electricity supply for production, business activities, and people's daily lives during the peak period of 2025 and the 2026-2030 phase. The directive assigns EVN to urgently commence construction and strive to complete the 500 kV Lao Cai - Vinh Yen transmission line project within six months, with a final deadline of September 2025.

Following the Prime Minister’s directive, EVN has mobilized all available resources and closely coordinated with ministries, sectors, and local authorities to implement tasks simultaneously and systematically.

During the investment preparation and construction phase, the project has received close guidance and support from the Government, ministries, and relevant agencies. At the same time, it has also secured financial backing from Vietcombank, enabling the 500 kV Lao Cai - Vinh Yên transmission line project to proceed on schedule.

EVN is committed to closely overseeing the construction process to ensure timely completion as planned and to utilizing the loan efficiently and for its intended purpose. The EVN General Director also expressed his hope for continued support and assistance from the Prime Minister, the Ministry of Finance, the Ministry of Industry and Trade, the State Bank of Vietnam, as well as central and local authorities and Vietcombank throughout the project's disbursement process./.