WB,
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The investment will fund
construction of over 1,000 kilometers of transmission lines and implement
Smart Grid technologies to improve reliability and quality of electricity
supply.
“Improving energy efficiency is
critical for Vietnam ’s
ability to meet energy demand to power growth and maintain improvements in
welfare.” said Victoria Kwakwa, Country Director for the World Bank
in Vietnam Vietnam
The loan supports a Transmission
Efficiency Project, which is expected to improve the capacity, efficiency and
reliability of electricity transmission in areas that are key to the
country’s economic development, including the Greater Hanoi Area, the Greater
Ho Chi Minh City Area, the Mekong Delta, and the Central Region.
It will finance transmission lines
and substations, constituting about 15% of the expected need for transmission
network expansion by 2020. The project targets key investment needs in major
economic development areas where transmission overloads are already present
or are expected in the very near term.
In addition, the project will
support Smart Grid technologies for monitoring, control, and protection
equipment to improve reliability and reduce electricity outages, and help
build the capacity of the National Power Transmission Company by supporting
its operational and financial independence, as part of a plan to pilot a
competitive energy wholesale market 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 International Bank for Reconstruction and Development, the
World Bank Group’s lending arm for middle-income countries. The remaining
US$231.25 million will be financed by the National Power Transmission
Company, Electricity of Vietnam.
VOV
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