WB approves US$500 million loan to improve electricity transmission

Friday, 2014-08-08 16:34:06
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Nhan Dan Online-  The World Bank on August 8 approved a loan of US$500 million to Vietnam to improve the capacity, efficiency and reliability of electricity transmission in areas that are of key importance to the country’s economic development.

Investment aims to construct over 1,000 kilometres of transmission lines and implement Smart Grid technologies to improve reliability and quality of electricity supply.

The project will finance transmission lines and substations at voltage levels of 220 and 500 kilovolts to increase the transport capacity and reliability of the electric grid in the greater Hanoi area, greater Ho Chi Minh City, the Mekong Delta and the central region.

It will finance about 15% of Vietnam’s transmission network growth from 2015 to 2020, targeting key investment needs in major economic development areas where transmission overloads are already present or will happen in the very short term.

In addition, the project will support Smart Grid technologies for monitoring, control, and protection of equipment to improve reliability and reduce electricity outages. At the same time, the project will also help build the capacity of the National Power Transmission Company by supporting its operational and financial independence, in line with the power sector reforms programme, which foresees a wholesale competitive market to be piloted by 2015.

The total financing requirement of the project is estimated at US$731.25 million, of which US$500 million will be funded by the WB. The remaining US$231.25 million will be financed by Vietnam.