Inter RAO, IIB mull power plant project in Vietnam
MOSCOW. July 24 (Interfax) - LLC Eastern Energy Company (EEC), a wholly owned subsidiary of Inter RAO UES , and the International Investment Bank (IIB) have signed a memorandum on the construction of the 1.2 GW Quang Trach 2 coal-fired thermal power plant in Vietnam at a preliminary cost of $2 billion, the IIB said in a statement.
Inter RAO told Interfax that it was only thinking about the project and that there was no question of it financing the project.
The IIB is prepared to invest up to $100 million of its own resources in the project and to raise similar amounts by way of "sectoral" syndications.
The bank thinks the project will be interesting for its partners, including Vietnamese banks, representatives of the financial sector of the European territory of IIB, as well as for the international development institutions. The IIB's overall contribution to the project as financial partner might $300 million-$400 million.
The IIB will also provide coordination and support for the project, which is part of an approved plan for the development of Vietnam's power industry for the period 2011-2020, by liaising with the Vietnamese government authorities.
The IIB was created in 1970 by the countries of the Council for Mutual Economic Assistance (Comecon). After Comecon disintegrated, the shareholders that are left are Russia, with a 58% stake, Bulgaria, Vietnam, Cuba, Mongolia, Romania, the Czech Republic and Slovakia. The IIB, which has the status of an international organization, focuses on financing investment projects. The bank is headquartered in Moscow.
