World Bank to Loan Viet Nam USD200 Million for Power Development

The 500KV power transmission line

Viet Nam got a loan of USD200 million for its second electricity transmission and distribution project.

The project will facilitate the connection of the new power sources to the 500KV transmission network, ending the power shortage and reducing the frequency and the time of interruption in the 500 and 200KV and the 110KV distribution systems.

The project will cost about USD323 million in the 2006-2010 period, invested by Electricity of Viet Nam, Ho Chi Minh Power Company and Power Company 3.

A total of 85% of the credit will be spent on reinforcement of the current 500 KV, 200 KV and 110 KV transmission systems.

The demand for electricity in Viet Nam has grown at an annual rate of 10% to 15% during the past few years. And, it is predicted to increase in the coming years to catch up with the rapid economic growth.

This project has a significant importance for the implementation of the new Electricity Law in particular and for the objectives of economic growth and poverty reduction objectives in Viet Nam, said Le Duc Thuy, State Bank of Viet Nam Governor, at the signing ceremony.

Klaus Rohland, World Bank’s Country Director for Viet Nam, affirmed that to meet the rising demand for electricity, it is essential to facilitate the transmission of power from generation complexes, and to improve the overall control and stability of the local distribution system in addition to new generation capacity.

The USD200 million credit agreement was signed by Le Duc Thuy, State Bank of Viet Nam Governor, and Klaus Rohland, World Bank’s Country Director for Viet Nam on March 16 in Ha Noi.

By BM - Translated by Van Hanh

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