International Investment Bank invests into power industry of Vietnam
Investment Bank and Eastern Energy Company signed a memorandum of intentions on the organization of the cooperation at the realization of the construction project
of the coal-fired thermal power plant Quang Trach-2. The Chairman of the Board
of IIB Nikolay Kosov and the Director General of EEC Mikhail Shashmurin have affixed their
signatures on the document.
project will be carried out in accordance with the decision of the Government
of the Socialist Republic of Vietnam and included into the «Plan of the
development of the national electric power industry for the period of 2011−2020.»
The total capacity of the coal-fired thermal power plant is 1200 mill watt; the
preliminary appraisal is USD 2 U.S. million.
transaction will be the first large infrastructure project in the history of the renewed IIB. Setting to the participation of its elaboration IIB is returning to the «deluxe range» of investment banks, which carry out
large-scale projects of national and international levels. An important factor
which makes Quang Trach-2 attractive is the planning during its realization to contract not only from Russia but from other member states of the Bank, in particular: the Czech Republic and the Slovak Republic.
the readiness of the Bank to invest up to USD 100 U.S. million of its own resources,
IIB is intending to attract analogical amounts of finance by way of «sectoral»
syndication. According to Nikolay Kosov, «this project will be interesting for
our partners as from the number of large Vietnamese commercial banks,
representatives of the financial sector of the European territory of IIB, as well as for the international institutions for development.» Thus, the total
participation of IIB as a financial partner of the project can attain up to USD 300−400 U.S. million.
from the attraction of funding, IIB will undertake the participation of the
coordination and the transaction support in the government authorities of Vietnam. The Ministry for Industry and Trade of the Socialist Republic of Vietnam, with whom the Bank has constructive working ties, is the main
administration of coordination of similar large-scale projects.
As Mikhail Shashmurin noted, for EEC who
enters into the group of Inter RAO, Central and Southeast Asia are the priority
regions. Beginning with the large-scale project, the power engineers are
expecting on the active cooperation with IIB, the usage of its experience and
ties on the Vietnamese direction.