The German Reconstruction Bank (KfW) signed a nine-year credit contract with the state-run Electricity of Vietnam Group (EVN) in Hanoi on Sept 7 to finance EUR120 million for the project “Enhancing energy efficiency in rural areas” in Vietnam. The investor, EVN, will provide EUR42 million in reciprocal capital for the EUR162-million project, the government of Vietnam said on its website late Sept 7, adding that the KfW will disburse the capital through June 30, 2014. The project will be carried out during the 2010-2013 period in 26 provinces across Vietnam in order to upgrade low and average-voltage power grids in rural areas, reduce power loss rate, and ensure safe and stable power supply. Power loss rate in Vietnam’s rural areas are estimated at between 20% and 35%. Currently, downgraded power grids and the lack of power transmisson lines are among major causes of Vietnam’s power shortage. (baodientu.chinhphu.vn Sept 9)
