Vietnam overseas bonds include funding 250-MW Sekamang 3

Vietnam’s government has approved an international bond issue to raise up to US$1 billion this year for hydropower plant and refinery construction as well as a cargo ship purchase.

Prime Minister Nguyen Tan Dung agreed on three possible options for raising the funds, with the finance ministry to complete the plans this month, a government statement said April 19. The government could sell a sovereign bond and lend the proceeds; corporate bonds could be issued with a government guarantee; or the companies could issue bonds without any guarantee.

Any issue of government bonds would be for maturities of 15 and 20 years.

Included in the projects to be funded is the 250-MW Sekamang 3 hydropower plant being built by Song Da Corp.

Last year, the Bank for Investment and Development of Vietnam agreed to lend 1.15 trillion dong (US$71.7 million) to the Vietnam-Lao Electricity Investment Development Joint Stock Co. to construct Sekamang 3 in Laos’ Sekong Province. (HNN 11/6/06)

Sekamang 3, also spelled Xekaman 3, is a foreign investment project by Vietnamese enterprise being built on a build-operate-transfer basis for a total cost of 4.26 trillion dong (US$266 million). Xekaman 3 Electronic Ltd. Co. was established to carry out the project by shareholders including Vietnam-Lao Electricity Investment and Electricite du Laos.

Song Da Corp., Vietnam’s largest power plant builder, began construction of the project in 2006. Upon completion, it is to generate 982 million kWh annually, with 90 percent exported to Vietnam.

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