Vietnam: Gov't to guarantee oil refinery loans

The Prime Minister on Sunday gave specific guidelines for foreign currency guaranteed loans provided by local commercial banks for the Dung Quat Oil Refinery in central Quang Ngai Province. The Ministry of Finance is guaranteeing the bank loans, including the US$200 million loan issued by the Vietnam Bank for Industry and Trade (Vietinbank) for the refinery. If the refinery’s investor, the Vietnam National Oil and Gas Group (PetroVietnam), runs short of foreign capital to complete the project, the Ministry of Finance and the State Bank of Vietnam will support the company’s bid to attract additional loans. It is expected that Dung Quat will be producing diesel, kerosene, fuel oil, Jet A1 (for aeroplanes), LPG (liquid petroleum gas) and A92, A95 petrol by the end of this month. It is expected to be fully operational in August with an annual capacity of 2.6 million tonnes of petroleum products. It was also announced on Sunday that loans would be guaranteed for a Polypropylene workshop – a part of the Dung Quat Oil Refinery, including credit from South Korean partners. Insurance is being provided by the Korea Export Insurance Corporation. (June 22, 2009)