JICA provides additional JPY36.4 billion to improve power supply

Friday, 2015-01-30 17:27:54
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Rendering of the Thai Binh Power Plant (Credit: JICA)
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NDO – The Japan International Co-operation Agency (JICA) has inked an agreement with the Vietnamese Government on providing an additional JPY36.392 billion of official development assistance (ODA) to support a project on building the Thai Binh Power Plant and Transmission Line II.

The project will construct a 600MW coal-fired thermal power plant using locally produced coal and a 220KV transmission line in the northern province of Thai Binh, in order to meet the power demand in the region. It will help reduce fuel costs and power loss because of long-distance power transmission, and increase the efficiency of the power supply, alleviating the strained power supply and demand balance, and promoting economic growth and the international competitiveness of the country.

The project will also lower the high dependency on hydroelectric power, currently at 50.2%, providing power stability overall by avoiding the reduction in power supply in the dry season when less water is available for producing hydroelectric power.

Together with JPY20.737 million for the project’s first phase in 2009, the loan will be used for engineering works, material and equipment procurement and consulting services, including the construction and supervision required for constructing the power station and setting up power transmission lines, and for constructing common facilities for the power station and adjacent power stations.

JICA said that it will continue to provide active support to address Vietnam's development issues, while pursuing integrated implementation of a wide range of ODA assistance, such as ODA loans, technical co-operation and non-refundable aid.