Vietnam will spend around US$1 billion each year to develop power transmission facilities and is dependent on foreign financing sources, a state-owned company said.
According to the National Power Transmission Corp., Vietnam will develop between 300 and 350 transmission projects from 2011 to 2015.
Vu Tran Nguyen, deputy general director of the corporation, said his company is charging the lowest transmission price in the world, at only VND77.5 per kilowatt-hour. As a result, it does not have enough capital for reinvestment.
To arrange enough money for new projects, the company has to find loans from various sources, including the World Bank and the Asian Development Bank, Nguyen said.
General director Nguyen Manh Hung said transmission projects cannot be delayed otherwise the country will face a serious power shortage.
He said new power plant projects should not be implemented until transmission grids have been completed. Without money for new transmission projects, many power plants will be useless, he added.