| Loan Agreement Dates | January 28, 1994 April 18, 1995 March 26, 1997 March 30, 1999 |
|---|---|
| Loan Amounts | 26.9 billion yen (I) 10.3 billion yen (II) 11.6 billion yen (III) 13.1 billion yen (IV) |
| Interest (%) | 1.0 1.8 2.3 0.75|0.75 |
| Repayment/Grace Period (Years) | 30/10 30/10 30/10 40/10 | 40/10 |
| Executing Agency | Electricity of Vietnam (EVN) |
| Project Location | Ba Rịa-Vung Tau Province |
Summary
Under the doi moi economic reform started in 1986, Vietnam has promoted a transition toward the market economy, which has resulted in a high level of foreign investment between 1992 and 1997 and an annual economic growth rate of over 8 percent. However, the outbreak of the Asian financial crisis in 1997 led to a fall in Vietnam’s gross domestic product to 5.8 percent the following year, and there was anxiety about its future.
Meanwhile, demand for electrical power in Vietnam has been steadily increasing. Power consumption rose by an annual average of 17 percent from 1990 to 1995 and by 18.3 percent between 1995 and 1997. Electric power consumption was expected to rise by a further 11 to 14 percent annually by 2005, and so the development of electrical power resources that balances thermal with hydroelectric power has been required to meet future demands of electricity, especially in Vietnam's southern region where power needs were high.
The region centered around Ho Chi Minh City consumes a large quantity of electrical power. To meet southern Vietnam’s impending demand for electrical power, which was expected to continue growing remarkably, this project constructed a gas combined cycle power plant with the capacity of 1090 megawatts in Phu My, southeast of Ho Chi Minh City, along with the associated transmission lines and substations. JICA has provided loans to cover the costs for construction works (including supervision) and consulting services, thereby , stable power supply for southern part of Vietnam could become a reality and the people’s livelihood be improved together with industrial development.
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