The Asian Development Bank (ADB) and Vietnam have signed a loan agreement worth USD 231.3 million that will help the country construct and upgrade its power transmission networks in the southern region.

This is the third loan in the 10-year lasting Power Transmission Investment Program approved by the bank in 2011.

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Eric Sidgwick, ADB National Director in Vietnam, said the financing is expected to support the Vietnamese Government in tackling power supply shortage, which is a major obstacle to the country’s economic growth.

The program will also help Vietnam access and use latest technologies to develop its transmission systems in line with international standards, contributing to minimizing power losses and preventing climate change.

Accordingly, Vietnam will use the loan to develop 60km more of 500kV transmission line and 64km more of 220kV transmission line, and add 3,700 MVA to existing transmission systems in the south.

As scheduled, ADB will approve the fourth loan for Vietnam in 2017, focusing on developing 500kV transmission lines and transformer stations in southern localities.

Once completed in 2020, the program is hoped to help improve the efficiency of power transmission systems nationwide, contributing to promoting the nation’s economic growth.

Source: VNA