NDO – The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has been approved by the Ministry of Finance to access the on-lending US$500 million transmission efficiency project (TEP) provided by the World Bank for electricity development in Vietnam.
TEP is the biggest World Bank power project in the country, aiming to assist Vietnam’s transmission network growth during the 2015-2020 period.
The project targets to improve capacity, efficiency and stability of electricity transmission systems in key economic areas and major cities including Hanoi, Ho Chi Minh City, Mekong Delta and the central region.
Also in the framework of TEP, the National Power Transmission Corporation under Electricity of Vietnam (EVNNPT) will develop a smart grid by upgrading control systems of five 500kV and eleven 220kV stations in order to protect equipment, enhance stability and reduce outages.
In addition, the project will also help strengthen EVNNPT capacity through support measures enhancing self-operating and financial self-management frameworks under power sector reform programmes.
With experiences in ODA and preferential foreign on-lending projects, BIDV is entrusted by the Ministry of Finance to be in charge of on-lending loans from international institutions like the World Bank, the Asian Development Bank, European Investment Bank, the French Development Agency, and the Nordic Investment Bank.
Especially in the field of power management on-lending, BIDV is in charge of signing a large number of credit contracts with the power sector, including the US$321 million power sector reform phase one development policy operation programme funded by the World Bank, the US$120 million power transmission in the northern region provided by ADB, and the power transmission in the northern region expansion worth US$360 million from ADB loans.