Representatives of EVN and the German Reconstruction Bank at the signing ceremony. (Photo: Courtesy of EVN)

Vietnam Electricity (EVN) has signed a loan agreement worth 65 million EUR (75.5 million USD) with the German Reconstruction Bank (KfW) for the Tri An hydropower plant expansion project, the group has announced.

This is the first project that KfW has lent to EVN in the form of a direct loan, without a government guarantee.

The expanded Tri An hydropower plant is the last one in the hydropower cascade on the Dong Nai river system before the river flows through Ho Chi Minh City.

The expanded plant has a designed capacity of 200MW, located parallel to the existing Tri An hydropower plant. It is expected to contribute to ensuring a stable and cost-effective electricity supply.

The signing of the loan agreement marked an important step forward in the implementation of the Tri An hydropower plant expansion project, while continuing to affirm the effective and long-term cooperation relationship between EVN and KfW in the field of sustainable energy development.

KfW is one of the largest banks in Germany. In Vietnam, EVN is one of KfW's most important partners. In the electricity sector, since 2009, KfW has signed nine official development assistance (ODA) funding agreements and non-refundable loans for EVN with a total capital of 891.5 million EUR, of which, six projects have been completed and disbursed KfW loans.

For new projects, KfW has committed about 800 million EUR of ODA capital, preferential loans, and loans without government guarantees to implement new projects of EVN and EVN's member corporations in the coming time./.

VNA