At the meeting, two banks leaders have discussed co-operation extension and the development of financial products in Vietnam, especially the implementation of credit line up to 1 billion USD signed on October 18th 2011 to finance the wind farm program in the Mekong Delta for the period of 2011-2015.
This financing is the fulfillment of the Memorandum of Understanding (MOU) singed on June 14th 2010, in the witness of Mr. Micheal W. Michalak, Former Ambassador of the United States to Vietnam and representatives of Vietnam Ministry of Finance.
The MOU called for cooperation between VDB and Ex-Im Bank in two forms: VDB directly borrows from US EXIM [(or a commercial lender under an US EXIM guarantee)] to on-lend to Vietnamese companies and VDB and US EXIM co-finance projects. In particular, the two banks desire to work together to promote export financing opportunities in the following areas: Renewable energy and energy efficiency projects; Environmental projects, such as solid waste treatment and wastewater treatment projects; Infrastructure development projects (seaport, airport, transport, etc) and safety network projects, such as hospital and school construction; Importing raw materials.
In connection with these projects, USEXIM gave the letter of intent to finance wind farm project in Bac Lieu province. This is the first step in deploying the credit for the wind farm program in the Mekong Delta in the period of 2011-2015.
The facility was proposed to be Ex-Im Bankguaranteed- loans from a commercial bank to VDB, guaranteed by the Ministry of Finance of Vietnam, with VDB on-lending to the project owners (similar to funding for buying aircrafts Boeing of Vietnam Airlines). VDB received offers from some of foreign banks interested in financing the project.
The wind farm project in Bac Lieu province with total investment of 200 million USD is applied technology leadership from US companies. The first phrase of installing 10 turbines of GE is being implementedand expectedly finishes in the end of 2012. In addtion to, 52 turbines for the second period of project are negotiating.
Along with Bac Lieu project, VDB has been surveying other provinces such as Tra Vinh, Soc Trang to build up a wind farm program in Mekong Delta. This program deploy the credit of 1 billion USD from USEXIM. Total productivity of wind farm program in Mekong Delta region is expected up to 500MW.
The wind farm program in Mekong Delta will help to solve energy demand from renewable energy of nature which is harmfulless to environment according to national strategy of developing clean energy, against climate change. The co-operation between VDB and US EXIM takes a important role and ensures the success of the program.
During its trip to Vietnam, the Ex-Im Bank delegation also met with Prime Minister Nguyen Tan Dung, Minister of Finance Vuong Dinh Hue, the CEO of Electricity of Vietnam Corporation and VDB./.