The World Bank signed a concessional credit agreement with the State Bank of Vietnam Tuesday to provide US$202 million to increase the supply of electricity to the national grid from renewable energy sources on a commercially, environmentally and socially sustainable basis.
The credit, coming from the International Development Association (IDA), the World Bank’s concessional lending arm, will contribute to total investment of US$ 315.77 million for the renewable energy development project. The remaining investment comes from the Government’s own budget, local banks, and private investors.
“The aim of the project is to increase the supply of electricity to the national grid from renewable energy which is important to help Vietnam expand and diversify its sources of electricity generation and to help in Vietnam’s efforts to reduce climate change,” the Country Director for the World Bank in Vietnam, Ms Victoria Kwakwa, said at the signing ceremony in Hanoi.
“We will work hard with the government, the local banks and most of all the private investors in their efforts to make this project a success,” she added.
The renewable energy development project includes three components.
The first is investment in renewable energy through the Bank for Investment and Development of Vietnam, Sacombank and Vietcombank who will provide loans to renewable energy projects not exceeding 30MW developed by private sponsors.
The second and third components will help develop the regulatory framework and capacity of Ministry of Industry and Trade and relevant agencies, and help develop other renewable energy projects in the future.
