Mr. Ho Sy Hung, Vice Chairman of the Committee for Management of State Capital at Enterprises highly appreciated the cooperation between EVN and AFD in the past time.
Speaking at the signing ceremony, Mr. Duong Quang Thanh - Chairman of EVN's Member Board said: "With the commitment of the Prime Minister of Vietnam at the COP 26 conference on net-zero carbon emission target by 2050, currently AFD and its European partners have been actively cooperating with and supporting EVN to play a leading role in the energy industry, contributing to the national energy transition program in order to realize the above-mentioned target. The EUR 80 million loans signed today between AFD and EVN aim to strengthen the Southern power grid system, absorbing the energy from renewable energy sources which are growing vigorously in the Southern provinces, contributing to the low carbon and energy transition process in Vietnam. EVN looks forward to further receiving effective support and assistance from the Government, ministries and agencies in EVN’s power plant and grid investment projects, in line with the Government's energy transition objectives, such as Bac Ai pumped storage hydropower plant project, hydropower plant extension projects, power transmission and distribution projects".
Mr. Duong Quang Thanh - Chairman of EVN's Board of Directors assured that he would direct EVNSPC to implement the project so as to meet the objectives and use the loan effectively.
The leader of EVN highly appreciated AFD's support during more than 20 years of close cooperation between AFD and EVN, especially through non-sovereign preferential loans and valuable technical support to EVN; at the same time, the Chairman pledged to direct EVNSPC to implement the project so as to meet the objectives and use the loan proceedings effectively.
Mr. Herve Conan - Director of AFD in Vietnam said: “This type of project will help EVN and Vietnam achieve their goals of low-carbon transition and sustainable development as well as the realization of the Paris Agreement on climate change and net zero emissions commitments. Effects in terms of reducing greenhouse gas emissions are enormous if we look at the capacity of these new transmission lines in integrating renewable energy sources into the national grid. Today's signing will pave the way for future cooperation between AFD and EVN, not only with non-sovereign financing for EVN but also loans for EVN's member companies in power transmission and distribution activities. AFD is committed to supporting EVN in upgrading its power grid and infrastructure in a smarter, more flexible and modern way.”
The leader of AFD also affirmed that AFD will always stand by and accompany EVN in new power projects in all fields of hydropower, transmission or distribution. AFD will support the necessary transition of EVN, not only with French resources but also with the diverse experience of European member states.
Mr. Nicolas Warnery - French Embassy in Vietnam affirmed that France will support Vietnam in the process of development and energy transition.
Appreciating the results achieved in the relationship between EVN and AFD, Mr. Ho Sy Hung - Chairman of the Committee for State Capital Management at Enterprises stated that AFD's support and cooperation with EVN in particular and the power industry in general are also one of the steps to concretize the good relationship between the two countries.
In order to carry out the great political tasks assigned by the Party and State, EVN together with its member organizations have been aggressively implementing construction investment activities to expand the electricity distribution network. In which, EVNSPC has been investing in the construction of power grid projects in the South, in order to improve reliability, safety and quality of service provision.
Mr. Herve Conan - Director of AFD in Vietnam affirmed that AFD will always stand by and accompany EVN in new power projects.
The Southern power distribution grid project financed by AFD includes 33 sub-projects, located in the provinces of Ben Tre, An Giang, Binh Thuan, Long An, Soc Trang, Tra Vinh, Ca Mau, Binh Phuoc, Dong Nai, French Dong Bac Lieu, Kien Giang and Can Tho city. The sub-projects are all included in the power development plans for the period 2016 - 2025 with a vision to 2035 approved by the Ministry of Industry and Trade.
All 33 sub-projects are economically and financially feasible. Feasibility study reports of sub-projects have been approved by EVNSPC in line with its authority. The total investment cost of the sub-projects is more than VND 4,487 billion, the implementation duration is from 2022 to 2024.
Leaders of EVN and AFD signed the credit facility agreement
Completing and putting into operation the project will improve the efficiency of electricity supply for the Southern region; mitigate power shortages and overloads in many areas; improve quality, safety and reduce power loss on the transmission system, and at the same time absorb the power of some renewable energy sources in the region.
Since the early 2000s, EVN and AFD have cooperated through sovereign and non-sovereign loans for many power generation and grid projects. To date, the total amount AFD has been committed to EVN through non-sovereign loans is about EUR 350 million.
Mr. Tran Dinh Nhan – President and CEO of EVN on behalf of the Group presented a souvenir picture to Mr. Herve Conan - Director of AFD in Vietnam
Preferential loans from AFD have contributed to supporting EVN in construction investment work, meeting the requirement of sufficient electricity supply for socio-economic development. In particular, AFD pioneered in providing direct loans without government guarantee for EVN's power projects while the Government's public debt ceiling has limited ODA loans for the power sector.