ADB Lends Vietnam US$360Mln to Expand Power Grids
The Asian Development Bank (ADB) has agreed to lend Vietnam a soft loan worth US$360 million for a project to ensure stable power supply in the country, which is now thirsting for power to speed up its economic growth.
State Bank of Vietnam (SBV) governor Le Duc Thuy and ADB's Country Director for Vietnam Ayumi Konishi inked the credit agreement yesterday August 22 in Hanoi.
Vietnam’s power sector will pump the soft loan with a 25-year duration and a five-year extension period provided by ADB’s Ordinary Capital Resources (OCR) and $92.7 million contributed by Electricity of Vietnam (EVN) to expand the high voltage transmission network in the north to ensure stable and effective electricity supply.
The project, which is scheduled for completion as of June of 2010, once fully in place will help deal with power transmission bottle-necks and shedding, facilitate efficient use of existing and planned power plants.
Speaking at the signing ceremony SBV governor Thuy said the government plans to double the capacity of existing power sources to 24,000 MW by 2010 in a bid to satisfy the rising power demand and eliminate load-shedding and voltage fluctuations that undermine operating cost of businesses in the fields of industry, commerce and services.
"Ensuring stable supply of power is essential for Vietnam's continuing growth and efforts to reduce poverty," the ADB's country director for Vietnam, Ayumi Konish said.
Last year, ADB provided the southeastern nation $120 million to carry out a northern power transmission project aimed at expanding, upgrading, and improving the quality and reliability of the 500 kV and 220 kV transmission systems.
P.V
Vietnamese
