The signing ceremony of credit agreement and mortgage contracts for non-government guaranteed loan between EVN and AFD for the Ialy Hydropower Plant Expansion Project

On 29 June 2021 in Hanoi, Vietnam Electricity (EVN) and the Agence Française de Développement (AFD) held the signing ceremony of Credit Agreement for the non-government guaranteed preferential loan worth EUR 74.7. million for Ialy Hydropower Plant Expansion Project.

The project includes 2 units with a total installed capacity of 360MW, total investment is about VND6,398 billion. The loans worth EUR74.7 million (equivalent to VND1,900 billion, accounting for 30.8% of the total investment capital for the project) for the Ialy Hydropower Plant Expansion Project is the 2nd non-government guaranteed preferential loan provided to EVN by AFD.

At the signing ceremony, Mr. Fabrice Richy, Director of AFD in Vietnam said: “The Ialy Hydropower Plant ExpansionProject will contribute to the energy transition to a low-carbon and sustainable energy in Vietnam, one of the important strategies of AFD in Vietnam. The credit agreement signed today helps to promote the development of renewable energy sources and continues to seek international funding sources for EVN's strategic projects. AFD wishes to continue to cooperate with EVN and its member units as well as other state-owned companies throughout Vietnam in the form of non-government guaranteed sponsorship."

Speaking at the Credit Agreement Signing Ceremony, Mr. Duong Quang Thanh - Chairman of the Member Board said: The Ialy Hydropower Plant Project and other hydropower expansion projects are part of the green energy development strategy and sustainability of EVN. Also, EVN highly appreciated AFD's support during the more than 20 years of close cooperation and relations between the two groups, especially through non-government guaranteed preferential loans and valuable technical assistance to EVN.

Once completed, the project will bring about the following effects: increasing the capacity to mobilize capacity of load for the southern region, especially during the peak hours; contributing to improving the working mode of the power system (increasing the source and peak power of the load curve, increasing operational flexibility, the reliability and safety coefficient...), thereby contributing to reducing the production cost of the whole system. By making full use of the flow capacity through limiting the annual discharge, it will increase the average output of annual power generation by about 233.2 million kWh, helping to replace power production from fossil fuels, contributing to reduction in annual fuel cost, greenhouse gas emission. In addition, when coming into operation, the project also effectively reduces the working intensity of existing generating units, thereby prolonging the equipment lifetime, saving maintenance and repair costs.

Ialy Power Plant Expansion Project:

Investor: Vietnam Electricity 

Representing the investor to manage and operate the project: Power Project Management Board No. 2

Construction site: Ya Tang commune, Sa Thay district, Kon Tum province and Ia Mo Nong commune, Ia Kreng, Ialy town, Chu Pah district, Gia Lai province.

Design consultancy unit: Electrical Construction Consulting Joint Stock Company No. 1

Total investment: About VND6,398,630 billion 

Expected to be commenced: Quarter II/2021;

Generating unit 1: Quarter II/2024; Generating unit 2: Quarter III/2024;

Completion of project: December 2024.


Communication Department - Vietnam Electricity;


Tel: 024.66946405/66946413;   Fax: 024.66946402

Address: No. 11, Cua Bac Street, Truc Bach Ward, Ba Dinh District - Hanoi;



  • 29/06/2021 04:27
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