HANOI, May 26 (Engineering Daily) -- The Prime Minister asked the Vietnam Electricity (EVN) to strictly implement the obligations of the debtor related to the responsibilities of the project implementing agencies as defined in the Loan Agreement.
The Prime Minister has approved the contents of Japanese ODA Loan Agreement between the Vietnam Government and the Japan International Cooperation Agency (JICA) in Vietnam and the financial mechanism of the loan for Thai Binh Thermal Power Plant Project and transmission lines (4th loan).
The Prime Minister has authorized the Ministry of Finance's leaders on behalf of the Vietnam Government to sign the abovementioned loan agreement with the Japanese side. The Ministry of Foreign Affair will implement the necessary diplomatic procedures for the signing of the loan agreement.
The Prime Minister asked the Vietnam Electricity (EVN) to strictly implement the obligations of the debtor related to the responsibilities of the project implementing agencies as defined in the Loan Agreement; the commitments to ensure the project efficiency and ability to repay, including the priority of adequate repayment source allocation for the project in the first years of operation with no profit and prepare adequate counterpart funds to ensure project schedule.
The Ministry of Industry and Trade is responsible for controlling the amount of the loan as of 4th loans within foreign loan amount approved; direct EVN to closely monitor project implementation in conformity to regulations, effectiveness, and tightly manage cost, production and progress. In the case of risks affecting investment efficiency, promptly notifying the Ministry of Finance and the Prime Minister is mandatory.
For the next projects, the Ministry of Finance has the overall assessment from EVN’s production and business results against their commitments to compensate the shortfall during the project investment from their own capital, ensuring efficiency and ability to repay.