The German government has provided Vietnam with a preferential loan of 120 million euro to help the country slash its electric energy loss from 30 percent to 15 percent and save it about 400 million kWh per year or VND350-400 billion annually.

The credit package, which will be channeled to Electricity of Vietnam Group through Germany’s Reconstruction Credit Institute KfW, will be spent on an ‘effective power’ project in rural areas.

The project will focus on improving, upgrading and expanding the rural electric grid, reducing electric loss on exhausted electric wires, and raising the quality of electricity and safety standards. It will also ensure equality for rural clients in terms of prices and service quality.

The project will be carried out in about 2000 communes in 45 provinces across Vietnam, benefiting some 2.9 million households.

Surveys show that many rural electric grids have been seriously downgraded, resulting in an enormous loss of electric power and poor technical standards. Given this, the government has had Energy of Vietnam take over all low-voltage systems in rural areas to provide rural residents with better services and drastically reduce carbon dioxide created by poor electric grids.

Source: VOV