First private firm receives ODA loans

The Vietnam Development Bank has just signed a credit contract with Hoa Phat Energy Joint Stock Company to dole out VND319 billion of official development assistance (ODA) loans to the company.

With this fund, Hoa Phat, a member company of Hoa Phat Group, becomes the first private enterprise in Vietnam to receive ODA loans.
The fund, which comes from ODA loans funded by the Japanese Government through the Japan International Cooperation Agency (JICA), will be used for the second phase of the construction of the Hoa Phat Coke Coal and Thermoelectricity Plant.
Hoa Phat was given the loan at a preferential interest rate of 9.6 percent for a 15-year term.
The plant construction, which began in March 2008, will meet state-of-the-art world standards with clean technology and environmental safety.
After completion of the second phase, scheduled to finish by the end of the first quarter of 2012, the coke plant will have an annual capacity of 700,000 tons of coke coal and the power plant will generate power with an average monthly output of 26 million KW, equivalent to a medium hydropower plant.

By B. Minh – Translated by Hoang Yen

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