Bank signs deal with Finance Ministry on loans to Transmission Efficiency Project.
The Ministry of Finance (MoF) and the Bank for Investment and Development of Vietnam (BIDV) have signed a contract assigning BIDV to provide credit to the Transmission Efficiency Project (TEP), with $500 million in funds coming from the Word Bank (WB). This would be the largest ever loan for electricity transmission in Vietnam from the WB.
The development objectives of the TEP is to improve the technical and operational performance of National Project Training (NPT) in providing reliable and energy efficient electricity transmission services in Vietnam. The project costs a total of $731.25 million and will finish on December 31, 2019, according to the WB.
Within the framework of the TEP, the National Power Transmission Corporation (EVNNPT) will build modern grids and upgrade control systems at five 500kV stations and eleven 220 kV stations.
Deputy Minister of Finance Truong Chi Trung said the TEP is one of the largest investment projects for NPT and the MoF believes in BIDV’s experience in the field.
BIDV has committed loans to EVN and its subsidiaries totalling VND22 trillion ($1.02 billion), with VND13 trillion ($603.72 million) having been disbursed.
BIDV has been involved in 17 projects in Vietnam’s power industry using ODA, totaling VND2.4 billion ($2.4 billion).