Vietnam Okays Mechanism for $1.7B ADB-funded Power Transmission Project

Vietnam’s Deputy Prime Minister Vuong Dinh Hue has approved a financial mechanism to borrow $1.75 billion in loans from the Asian Development Bank (ADB) for a power transmission project in the country. Accordingly, the Ministry of Finance will check all conditions to allow Vietnam JS Commercial Bank for Industry and Trade (VietinBank), the country’s largest lender by registered capital, to relend the ADB’s loans to a power transmission project – third section. Costing total $1.75 billion, the project comprising of three components will include $730 million from ordinary capital resources (OCR) from the bank. The project will focus on expanding power transmission network, mostly in the northern, central and southeastern region, improving power transmission capacity of National Power Transmission Corporation (NPT), an affiliate of state utility Vietnam Electricity (EVN), and implementing the project closely following environmental protection regulations. NPT will conduct the project in the 2011-2020 period. (Bnews.vn Dec 7, Baodautu.vn Dec 8)