Mr. Nguyen Xuan Nam - Deputy General Director of EVN and Mr. Rémi Genevey - Head of Asia Department of AFD signed Credit Agreement for Se San 4 Solar Power Plant Project.
This is a non-sovereign guaranteed loan of EUR 24.2 million for Se San 4 Solar Power Project; in which the total value of the project's EPC contract will be sponsored by AFD .
Se San 4 solar power project is designed with a total capacity of 49MWp, built on the land of Se San 4 Hydropower Plant, in Gia Lai Province.
In addition to the Se San 4 Solar Power Project, AFD has also a non-sovereign guaranteed fund for the Ialy Hydropower Plant Expansion Project; investment projects to build power grids in some areas in the South (by the Southern Power Corporation) to serve the capacity release of renewable energy sources. In particular, AFD is considering continuing to fund the Hoa Binh Hydropower Plant Expansion Project.
Speaking at the signing ceremony, Mr. Nguyen Xuan Nam - Deputy General Director of EVN said: EVN highly appreciated AFD's support and cooperation in arranging non-sovereign guaranteed loans for power projects, especially in the context of public debt ceiling, the Government is tightening and will gradually stop providing guarantees for EVN's power projects. Currently, EVN is actively diversifying its financial mobilization channels to meet the huge investment needs in the coming years.
AFD is an international financial institution of the French Government operating for non-profit purpose, specializing in providing loans and grants to state-owned organizations and enterprises, with the main funding criteria of reduction in emissions and combat against climate change. Up to now, AFD is the first and only sponsor to provide non-sovereign guaranteed loans to EVN for implementing power projects. AFD's first non-sovereign guaranteed loan, funded to the Huoi Quang Hydroelectric Plant Project, worth US$ 100 million, was signed in 2010.