Five commercial banks grant credit

Five commercial banks grant credit
Published: 16 August 2004

Five commercial banks have signed a 1,830 billion VND credit contract with the Viet Nam Construction and Import-Export Corporation (Vinaconex) for the construction of Cam Pha cement plant in northern border Quang Ninh province. Under the contract, the Industrial and Commercial Bank of Viet Nam (Incombank) will arrange the  13-year loans with a three-year grace period. Incombank is the biggest sponsor providing loans worth 650 billion VND. It is followed by the Viet Nam Bank for Agriculture and Rural Development, 500 billion VND; the Bank for Investment and Development of Viet Nam, 450 billion VND; the Viet Nam Foreign Trade Bank, 200 billion VND; and Indovina Bank, 30 billion VND.

 The project includes the construction of a cement plant with an annual capacity of 2.3Mt, limestone and clay quarries, a deep sea port which is capable of receiving 15,000 tonne vessels in Quang Ninh and another port in southern Ba Ria-Vung Tau province’s My Xuan Industrial Zone and a grinding station with an annual capacity of 1.48Mt of cement. Out of the total investment capital of almost 4,400 billion VND, Vinaconex will contribute more than 770 billion VND and foreign loans make up around US$134m. The plant is expected to be operational after 42 months of construction.