15:06 | 28/05/2016 Industry
Prime Minister Nguyen Xuan Phuc has approved a guarantee for an insured untied NEXI loan to fund the 500kV transmission line between the Vinh Tan Power Centre and Song May-Tan Uyen.
To obtain the guarantee, the National Power Transmission Corporation (NPT) must secure enough of its own capital for the project in line with its progress, and register mortgaged assets as security for government guarantee in line with the law.
Electricity of Vietnam (EVN) is responsible for overseeing NPT’s implementation of the project and fulfilling the debt obligation as the parent of NPT in case it is unable to pay back.
The guarantee fee is 0.25% per year.
The Ministry of Industry and Trade was tasked with supervising the finances of EVN and NPT and reporting to the prime minister if the two are in financial trouble.
The prime minister approved the letter of guarantee and asked the Ministry of Finance to sign the letter on behalf of the government with foreign creditors.
Construction of the Vinh Tan-Song May-Tan Uyen transmission line started in November last year. Total investment for the project is estimated at VND5.333 trillion (US$240 million)./.