The loan will be used by Vietnam to fund construction of more than 1,000km of transmission lines as well as deploy smart grid technologies to enhance reliability and electricity supply quality.
The investment will also support a $731.25m transmission efficiency project which would enhance the capacity, efficiency and reliability of electricity transmission in the areas of Greater Hanoi, the Greater Ho Chi Minh City, the Mekong Delta, and the Central Region.
The International Bank for Reconstruction and Development, the World Bank Group’s lending arm for middle-income countries, will provide $500m of $731.25m for the project, while the remaining $231.25m will be financed by the National Power Transmission Company, Electricity of Vietnam.
World Bank Vietnam country director Victoria Kwakwa said: "Improving energy efficiency is critical for Vietnam’s ability to meet energy demand to power growth and maintain improvements in welfare.
"Energy efficiency improvements are also important for reducing Vietnam’s rapidly growing greenhouse gas emissions and contributing to climate change mitigation."
