The French Development Agency (AFD) has just lent Vietnam EUR 70 million to help the Southeast Asian nation implement the Hoa Binh Hydropower Plant Expansion Project. This is an important project in Vietnam’s policy of energy conversion and the use of renewable energy.
The signing ceremony of a credit agreement for a preferential loan without government guarantee between AFD and Electricity of Vietnam (EVN) took place on the afternoon of November 10, according to Vietnam’s state-controlled media.
The loan accounts for about 20% of the total investment of the project. The remaining balance consists of the investor’s capital (30%) and loans from domestic commercial banks.
The Hoa Binh hydropower plant expansion project has been approved by the Prime Minister with a total investment of VND9.22 trillion, including 2 power units with a total installed capacity of 480 MW.
It is expected that after completion, the project will help increase the average annual power generation output of about 495 million kWh, helping to replace electricity production from fossil fuels, contributing to reducing annual fuel costs and reducing greenhouse gas emissions.
At the United Nations climate conference (COP26) in Glasgow, Scotland, earlier this month, Prime Minister Pham Minh Chinh pledged that Vietnam would develop and implement strong greenhouse gas emission reduction measures. stronger by its own resources and with the cooperation and support of the international community, both in finance and in technology transfer, to achieve net-zero emissions by 2050.