The loan will fund construction of more than 1,000km of transmission lines and deploy smart grid technologies to enhance reliability and electricity supply quality.
It supports a transmission efficiency project, which is expected to improve 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.
New transmission lines and substations will be built as part of the project. They will constitute around 15% of the estimated requirement for transmission network expansion by 2020.
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."
The entire project is estimated to cost $731.25m, of which $500m will come from the International Bank for Reconstruction and Development, the World Bank Group’s lending arm for middle-income countries.
The remaining $231.25m will be financed by the National Power Transmission Company, Electricity of Vietnam.
Image: The World Bank loan will fund construction of more than 1,000km of transmission lines in Vietnam. Photo: Courtesy of franky242/FreeDigitalPhotos.net.
