$752,000 agreements for project planning at two EVN subsidiaries.
Mr. Rémi Genevey, Director of the French Agency for Development (AFD) in Vietnam, and Mr. Andréas Greim, General Manager of EDF International Networks (EFD IN), signed two financial agreements valued at $752,223 in Hanoi on September 29. The money comes from the Funds for Technical Expertise and Experience Sharing (FEXTE), which is managed by AFD.
The agreement is expected to optimize investment planning of two major electricity distribution companies - Hanoi Power Corporation and the Northern Power Corporation, both subsidiaries of Electricity of Vietnam (EVN). It falls under the partnership agreement signed in July and provides for the transfer of experience and expertise in developing distribution networks and investment optimization methodologies.
EDF IN will assist the two companies in drawing up a master plan for two pilot areas jointly identified at a later date.
Vietnam’s aggregate energy demand has significantly increased over the last two decades (almost double the 6 per cent annual average GDP growth in the same period) and the trend is projected to continue in the coming years. Vietnam is forecast to face several major challenges in the future, with reliable power supply requiring expansion of the country’s investment capacity. In 2014 EVN invested nearly $6 billion in the construction of electricity lines, which represents a major effort compared to previous years.