The Asian Development Bank (ADB
) and the Vietnamese government have signed a $231.3 million loan agreement to enhance the power transmission network in the country’s southern region.
The loan is the third tranche of the 10-year Power Transmission Investment Program, which was approved by ADB in 2011, the bank said in a statement.
Tranche 3 will add 60 km of 500 kV, 64 km of 220 kV, and 3700 MVA of transmission capacity in southern Vietnam, complementing the additional transmission capacity provided in northern and central Vietnam under the first two tranches.
The expanded capacity will enable electricity transmission from the power plant cluster of Vietnam’s southwest region to the national grid system, and improve the reliability and stability of power supply to major economic centers in southern Vietnam.
The last tranche, tranche 4, which is being prepared and is expected to be approved in 2017, will focus on a 500 kV transmission line and substations, also in the southern region.
Including this investment program, ADB has assisted Vietnam to develop transmission systems throughout the country with a total of around 1,200 kilometers of 500 kV lines and 670 kilometers of 220 kV lines, and around 10,000 MVA of 220/500 kV substations.
“This Investment Program also brings the latest and advanced technologies to upgrade the transmission system to international standards, and reduces transmission losses contributing to climate change mitigation,” said ADB Country Director for Vietnam Eric Sidgwick.
Upon completion in 2020, ADB’s Power Transmission Investment Program is expected to help Vietnam remove major bottlenecks of transmission systems across the country, promote the efficient utilization of existing and planned power plants, and increase power availability to fuel the country's fast growing economy.