World Bank Pledges to Fund Energy Projects in Vietnam without Govt Guarantee

Chief Executive Officer of the World Bank (WB) Kristalina Georgieva said during her visit to Vietnam on Mar 22-24 that the bank will consider imposing proper tools to help Vietnamese energy firms get financial support without the government’s guarantee. Ms. Georgieva made the statement in a field trip to the WB-funded Trung Son hydropower plant located in Vietnam’s central province of Thanh Hoa on Mar 22. On this occasion, Deputy General Director Dinh Quang Tri of state utility Vietnam Electricity (EVN), said that the country’s sole power distributor is facing difficulties in mobilizing capital without the government’s guarantee. Mr. Tri noted that the situation becomes harder as investors need to arrange a large amount of money for power projects in the context that the country’s power consumption grows between 11% and 12% annually. The WB’s official also reminded Vietnam of keeping foreign debts at reasonable rates. The 260-megawatt Trung Son plant is the first hydropower project in Vietnam getting fund from the WB’s International Bank for Reconstruction and Development (IBRD), an international financial institution that offers loans to middle-income developing countries. Trung Son costs total investment of $411.5 million, including 80% from the IBRD. It is designed to generate one billion kWh of electricity per year. It is among the few power facilities in Vietnam with functioning flood circulation and carbon dioxide emission reduction. Currently, two out of four turbines of Trung Son facility are operational to serve the construction completion in August 2017. (Nangluongvietnam Mar 23, VnExpress Mar 23, Phap LuatVietnam – Vietnam Law Mar 23)