The Deputy Minister of Finance has just signed a circular on disbursing capital for the Ninh Thuan Nuclear Power Plant, for the 2014 to 2021 period.
Perspective of Ninh Thuan Nuclear Power Plant
As a result, the Vietnam Development Bank (VDB) will take over the funding provided by the Russian government and lend it to the state-owned Electricity of Vietnam Group (EVN) for the project’s implementation.
The Bank for Foreign Trade of Vietnam (Vietcombank) has been assigned to provide financing for EVN.
Capital disbursement will start from 2014 through 2021. The lending and debt payment would be all in USD.
If EVN pays in VND, the exchange rate would be compliant with the rate applied by Vietcombank at the moment of the payment.
EVN would be allowed to borrow the capital for 29 years with an eight-year grace period. The interest rate will be defined in a lending contract with the bank. EVN will have to pay an interest rate of 150% in case of any deferred payment.
Apart from interest rates, EVN must also pay payment service fees to Vietcombank and a lending fee of 0.125% per year on the outstanding principal for VDB.
The Ninh Thuan Nuclear Power Plant will comprise of 2 reactors with combined capacity of over 4,000 MW. Construction of the plant will start in 2014 with expected completion by 2022.
