Vietnam and the World Bank signed a US$500 million loan to fund construction of over 1,000 kilometers of transmission lines and implement Smart Grid technologies to improve reliability and quality of electricity supply.
Vietnam will finance another $231.25 million for the operation, known as the Transmission Efficiency Project, according to a press release from the WB.
The project 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.
“Improving energy efficiency is critical for Vietnam’s ability to meet energy demand to power growth and maintain improvements in welfare.” Victoria Kwakwa, Country Director for the World Bank in Vietnam, was quoted as saying in the release.
“Energy efficiency improvements are also important for reducing Vietnam’s rapidly growing greenhouse gas emissions and contributing to climate change mitigation,” she also said.
The project will finance transmission lines and substations, constituting about 15 percent of the expected need for transmission network expansion by 2020, according to the release.
It will also 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.