ADB supports power transmission improvement in South of Vietnam

The Asian Development Bank (ADB) and the Government of Vietnam October 13 signed a $231.3 million loan agreement to enhance the power transmission network in the South of Vietnam.

The loan is the third tranche of the 10-year Power Transmission Investment Program, which was approved by ADB in 2011.

“The inadequate supply of electricity is a key bottleneck inhibiting economic growth and adversely affecting all consumer groups, especially the poor households in rural and disadvantaged areas,” said ADB Country Director for Vietnam Eric Sidgwick. “ADB’s investment program is supporting the Government to address this bottleneck by expanding transmission system capacity in time to cope with the increasing power demand driven by strong economic growth.”

Tranche 3 will add 60 km of 500 kV, 64 km of 220 kV, and 3700 MVA of transmission capacity in the South, complementing the additional transmission capacity provided in Northern and Central Vietnam under tranches 1 and 2 respectively. The expanded capacity will enable electricity transmission from the power plant cluster of Vietnam’s Southwest region to the national grid system, and improve the reliability and stability of power supply to major economic centers in Southern Vietnam.

The last tranche, tranche 4, which is being prepared and is expected to be approved in 2017, will focus on a 500 kV transmission line and substations, also in the South.

Including this Investment Program, ADB has assisted Vietnam to develop transmission systems throughout the country with a total of around 1,200 kilometers of 500 kV lines and 670 kilometers of 220 kV lines, and around 10,000 MVA of 220/500 kV substations.  ADB has also provided project management related capacity building support to the National Power Transmission Corporation.

Upon completion in 2020, ADB’s Power Transmission Investment Program is expected to help Vietnam remove major bottlenecks of transmission systems in the North, the Central and the South, promote the efficient utilization of existing and planned power plants, and increase power availability across the country to fuel the country's fast growing economy.

By Uyen Phuong

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