HCMC – The Vietnam Electricity Group (EVN) and the Vietnam Bank of Agriculture and Rural Development (Agribank) have signed a credit agreement worth VND2.4 trillion to develop the Ialy hydropower plant expansion project.

The 14-year-term loan accounts for nearly 38% of the project’s total investment. This is the second loan the State-run utility has taken to pour into the expansion project, the local media reported.

In mid-2021, EVN and AFD signed a credit deal for a non-government-guaranteed loan worth VND1.9 trillion to expand the Ialy hydropower plant.

Agribank pledged to ensure the loan is disbursed timely in line with the agreement with EVN, said Agribank Chairman Pham Duc An.

Work on the project is on schedule despite the impact of Covid-19 and the rising prices of building materials. The expanded Ialy hydropower plant will be put into operation in late 2024, according to EVN Chairman Duong Quang Thanh.

The Ialy hydropower plant expansion project spans Sa Thay District in Kon Tum Province and Chu Pah District in Gia Lai Province. The project is set to have a capacity of 360 megawatts and cost some VND6.4 trillion.

When in place, the hydropower plant will supply electricity to the southern region, boost renewable energy development, enhance the quality of the national power grid and help reduce greenhouse gas emissions.