ADB commits $730M to Vietnam's power transmission network

The ADB and the Government of Vietnam signed the first tranche of a $730 million investment program to upgrade the country’s power transmission network.

The multi-tranche loan facility for the Power Transmission Investment Program begins with a first payment of $120.5 million. The program supports the construction of almost 648 kilometers of 500 kilovolt lines and more than 100 kilometers of 220 kV lines, plus upgrades to associated substations, and training and other support for the National Power Transmission Corporation.

ADB funds are expected to be released in four tranches, with the first loan from ordinary capital resources having a 25-year term. The program is scheduled for completion in 2020.

Signatories were State Bank of Vietnam Governor Nguyen Van Binh and ADB Vice-President Stephen P. Groff.

“To keep the economy powering forward, the country needs a stable, steady supply of electricity. Upgrades in power generation, transmission, and distribution capacity, as foreseen under the Investment Program, will remove bottlenecks, reduce transmission losses, and ensure the safety and quality of the electricity supply, allowing the lights to stay on and the economy to keep growing,” said ADB Vice-President Stephen P. Groff.

Although Vietnam has made remarkable progress in expanding access to electricity, many communities – mainly in rural and mountainous areas – are not yet connected to the grid. Without additional network expansion, the share of urban and rural populations without electricity is expected to increase, particularly among populations with lower income.

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