HANOI -(Dow Jones)- The state-run Vietnam Development Bank has signed a letter of credit with the Export-Import Bank of the U.S. for a $ 1 billion loan to finance the development of wind-energy projects in the Mekong Delta region during the period 2011-2015, the Vietnamese government said in a statement issued late Tuesday.
Ex-Im Bank will make loans and may also serve as guarantor when VDB borrows from international banks. The loans will be used to pay for the construction and equipment of wind-energy projects to be built in Vietnam, the statement said.
In the first project in Bac Lieu Province, borrowings from Ex-Im Bank will be used to pay for the purchase of wind-turbines from U.S. firm General Electric, the statement said.
At the All Energy exhibition in Australia, GE’s Asia-Pacific renewable sales manager Peter Cowling says: “Vietnam is simply the most exciting wind prospect in the region.”