Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has signed a US$27 million loan agreement with the Japan Bank for International Cooperation (JBIC), alongside co-lenders Sumitomo Mitsui Banking Corporation (SMBC) and Joyo Bank, Ltd. (Japan).

This is the first project loan under the US$150 million credit framework agreement signed between VPBank and JBIC in 2024 to finance clean energy and green projects in Vietnam.

Under the agreement, VPBank will provide US$27 million in funding to EVNNPT for the 220kV transmission line project connecting the Binh Duong 1 500kV Substation with a branch to the Uyen Hung – Song May line. The project aims to boost transmission capacity and meet the rapidly growing load demands of industrial zones in Ho Chi Minh City, while simultaneously strengthening grid interconnections and enhancing the stability and reliability of power supply.

VPBank having signed US$27 million loan agreement with Japan Bank for International Cooperation (JBIC) and co-lenders Sumitomo Mitsui Banking Corporation (SMBC) and Joyo Bank, Ltd. (Japan) to finance power transmission project.

The project involves the construction of an approximately 38 km-long overhead transmission line with four 220kV circuits. At the same time, the project will involve reconductoring the existing double-circuit 220kV Uyen Hung – Song May transmission line from Tower No. 88 to the Uyen Hung 220kV Substation.

Upon completion, the project will help establish a looped configuration for the regional power system, ease the load on existing transmission lines and 110 kV lines, and enhance the safe and stable operation of the power grid. The project will also help meet the N-1 reliability criterion and enhance the reliability of power supply to loads, particularly in areas experiencing rapid industrial growth.

The successful mobilization of international capital for the 220 kV transmission line project connecting the Binh Duong 1 500 kV Substation with a branch to the Uyen Hung–Song May line further strengthens EVNNPT’s resources for transmission system development. This will help ensure adequate transmission capacity, enhance power supply reliability, and meet electricity demand in the Ho Chi Minh City area.

Translator: Đình Nam