The loan, which does not have a Government guarantee, accounts for 30.8 percent of the total investment of the project - estimated at nearly VND6.4 trillion (US$278.6 million).
The expanded Ialy Hydropower plant will have two turbines with a combined capacity of 360 megawatts.
Speaking at the signing ceremony, Director of AFD in Vietnam Fabrice Richy said the Ialy Hydropower Plant Extension project will contribute to the transformation of Vietnam's energy into a low-carbon and sustainable form of energy, adding that this is one of the important strategies of AFD in Vietnam.
He also said that AFD wants to continue to cooperate with EVN and its member units as well as other state-owned companies in Vietnam through funding without a government guarantee.
Duong Quang Thanh, Chairman of EVN's Member Council said the Ialy Hydropower Plant Extension project and other expansion hydropower projects are part of EVN's green and sustainable energy development strategy.
“EVN appreciates AFD’s support over the past 20 years, especially through concessional loans without government guarantees and valuable technical assistance to EVN,” he said.
