The World Bank, through the International Bank for Reconstruction and Development (IBRD), has extended a $500 million loan to the State Bank of Vietnam for improving the country’s energy sector. The loan will fund the $731.25 million transmission efficiency project being implemented by the National Power Transmission Company (NPT) – a subsidiary of state-owned Electricity of Vietnam (EVN) Group. The remaining $231.25 million cost of the project will be funded by NPT. The project aims to improve the reliability and capacity of the country’s power transmission network and comprises three components – enhancing transmission infrastructure ($625 million), developing a smart grid network ($80 million) and capacity building ($25 million). Under the first component, 500 kV and 220 kV transmission lines and substations, constituting about 15 per cent of the expected need for transmission network expansion by 2020, will be constructed in select areas of the country. The second component aims at developing a smart grid network by modernising monitoring, control and protection of equipment in 500 kV and 220 kV substations. The third component will build the capacity of NPT by supporting its operational and financial independence, as part of a plan to pilot a competitive energy wholesale market by 2015.
