The project requires an investment of $731.25m, of which $500m will be funded by the International Bank for Reconstruction and Development, the World Bank’s lending arm for middle-income countries.
The Socialist Republic of Vietnam will finance the remaining $231.25m of investment.
Under the project, more than 1,000km of transmission lines and substations at voltage levels of 220 and 500 kilovolts will be built.
The World Bank said the funding will make up 15% of Vietnam’s transmission network growth in the 2015 to 2020 period.
The project will support Smart Grid technologies to monitor, control, and protect equipment in order to enhance reliability and reduce electricity outages.
According to the bank, the project will also help build the capacity of the National Power Transmission Company by supporting its operational and financial independence.
