Companies & Finance
 
Citibank to broker US$550mln plant loan
Compiled by Thuy Hang

Citibank will source a US$550 million loan for a state-owned Vietnam Oil & Gas Group (PetroVietnam) power plant, the bank said Thursday.

Citibank was asked to drum up financing for the Nhon Trach 2 power plant in southern Dong Nai Province, some 30 km from Ho Chi Minh City.

The 750-megawatt, gas-fired Nhon Trach 2 plant is scheduled to go online by March 2011, Citigroup said in a statement Thursday.

The plant will generate 4.5 billion kWh a year when fully operational.

Meanwhile, the Nhon Trach 1 plant, also backed by PetroVietnam Power Corporation, (PV Power) was inaugurated in late August. It is expected to add between 2.2 billion and 2.5 billion kilowatt hours a year to the national grid.

According to Bloomberg newswire, PetroVietnam has moved into electricity generation after Electricity of Vietnam, the country’s biggest supplier, said it couldn’t afford to build new plants.

The government forecast electricity to rise by as much as 14 percent annually through 2015.

Vietnam’s retail electricity prices are the highest in Southeast Asia and have been a constant source of complaints for both the public and foreign investors, particularly from the manufacturing sector.

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