5:00:51 PM | 8/10/2008
The Asian Development Bank (ADB) October 6 clinched an agreement to lend US$196 million Song Bung 4 hydropower project in central Quang Nam province, the Vietnam News Agency reported.
The 156-MW hydropower project is the first of its kind in Vietnam to receive funding from a multilateral financial institution, the agency said.
The Song Bung 4 hydropower project costs a total US$267.3 million. Apart from the ADB’s loan, US$22.3 million will be provided by the Vietnam Development Bank and the rest of US$49 million financed state-owned Electricity of Vietnam Group (EVN).
Once fully operational in 2013, the plant is expected to enhance power supply in Vietnam so as to fuel growing power demand of 16 per cent per year until 2010 and 12 per cent per annum thereafter.
The project will also help improve living conditions among local ethnic minorities by building settlement areas and upgrading healthcare, education and transport facilities in the region.
“We hope ADB’s financing of a hydropower project developed by EVN will provide comfort for other lenders to finance additional power generation projects developed by EVN in the future”, said Ayumi Konishi, ADB country director for Vietnam.
Vietnam plans to raise the total capacity of hydropower generation projects to more than 18,000 MW and the annual output of over 80 billion kWh by 2015. (VNA)
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