World Bank Funds $449M for Vietnam Power Distribution Project

The World Bank (WB) and the Vietnam Electricity Group (EVN), the country’s sole power distributor, has signed a credit agreement to fund $449 million for Vietnam’s Distribution Efficiency Project (DEP), the Thoi Bao Kinh Te Viet Nam newspaper reported on Nov 9. The WB’s International Development Association (IDA) will finance the sum to help the EVN conduct the project costing a total of $800 million, the newspaper reported. Five power corporations under the EVN will undertake the project which aims to raise the electricity supply capacity. The project will enable Vietnam to improve the performance of the state-run power corporations in providing electricity services, which are lacking in many aspects due to the state monopoly of power distribution. Ineffective power distribution capacity has resulted in a high power loss rate of about 11% in the Southeast Asian country, compared to lower rates of 4%-5% in regional countries like the Philippines, Singapore, Malaysia and Indonesia. The EVN targets to reduce the figure to 8.9% in 2015. After being strongly criticized by local people and foreign partners, Vietnam plans to maintain the state control over power distribution only until the next decade. (Thoi Bao Kinh Te Viet Nam – Vietnam Economic Times Nov 9 p3)