Vietnam gets a $730 mln shot to its electricity network
"Without the removal of these transmission bottlenecks the proportion of people without electricity would increase, and economic growth would be negatively affected,” said Daniela Schmidt, energy specialist in ADB's Energy Division for Southeast Asia. “These network upgrades will increase power availability by reducing transmission system losses and other problems that are currently plaguing the system.”
The mutli-tranche loan facility for the Power Transmission Investment Program has been approved by ADB’s Board of Directors with a first payment of USD120.5 million. The program supports the construction of almost 648 kilometers of 500 kilovolts (kV) lines and over 100 kilometers of 220 kV lines, while upgrading associated substations. Funds will also be used to provide training and other support to the state-owned National Power Transmission Corporation.
Since 2005 Vietnam has been working hard to increase power capacity, create a competitive power market and broaden ownership in the power sector with generating plants being gradually transferred to independent power producers.
From 2011 to 2020, up to 46 percent of new generating capacity is expected to come from foreign and domestic private sector entities.
ADB funds are expected to be released in four tranches, with the first loan from ordinary capital resources having a 25-year term. The program is due for completion by June 2020.