WB to help Vietnam improve energy efficiency in industrial sector

The World Bank’s Board of Executive Directors has approved a $102 million loan to the government of Vietnam to support the effort of industrial enterprises to adopt energy-efficiency technologies and practices.

Illustrative photo (Photo: VNA)

Illustrative photo (Photo: VNA)

Under this project, industrial enterprises can access a new line of credit to fund their purchases of energy-efficiency and production-optimization technologies, thus reducing energy consumption and production costs and increasing their overall competitiveness in the domestic and international markets.

With the support of the project, financial institutions and industrial enterprises will be able to prepare, evaluate and appraise energy efficiency projects. This will create a new line of business for financing institutions, providing loans to support industrial energy-efficiency investments, which will enable them to scale up energy-efficiency lending to industries.

Funding under this project will be provided to participating financial institutions, which will then lend to industrial enterprises to invest in energy-efficient subprojects.

Of the $158 million, $100 million comes from WB’s International Bank for Reconstruction and Development, the financing resource for middle-income countries, and $1.7 million is from the International Development Association, the Bank’s fund for the poorest countries. The rest of the project’s funding will come from the Vietnam government and participating financial institutions.

By Ham Yen - translated by Uyen Phuong

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