WB approves $500 million loan for Vietnam

On August 7, the World Bank (WB) Board of Executive Directors approved a $500 million loan for Vietnam to help improve the capacity, efficiency and stability of the power transmission network in key economic areas such as Hanoi, Ho Chi Minh City, the Mekong Delta and the Central region.

Illustration photo. Source: Internet

The project will finance the construction of 220 and 500 kV transmission lines and substations to increase the capacity and stability of the power transmission network, meeting about 15% of Vietnam's power grid growth demand in the 2015-2020 period and focusing on key economic areas where the power transmission network has been or will be overloaded in the near future.

In addition, the project will also support smart power transmission technology to monitor, test and protect equipment to increase stability and reduce power outages.

The project will also help strengthen the capacity of the National Power Transmission Company through measures to support increased operational and financial autonomy within the framework of the power sector reform program. Under this program, a competitive wholesale electricity market will be piloted from 2015.

The total investment capital of the project is estimated at 731.25 million USD, of which 500 million USD will be provided by the International Bank for Reconstruction and Development - a WB organization specializing in lending capital to middle-income countries. The remaining 231.25 million USD will be provided by the Vietnamese Government.

According to HNMO