Switzerland’s State Secretariat for Economic Affairs (Seco) will provide a non-refundable aid of EUR2.34 million to help Vietnam carry out its renewable energy development program (REDP). The assistance followed an agreement signed yesterday [May 10] in the capital city of Hanoi by representatives from Seco and the Vietnamese Ministry of Industry and Trade. REDP will have a total investment of $318.3 million, comprising $202.2 million financed by the World Bank-based International Development Association, $2.43 million from Seco and the rest from the Vietnam’s state budget.
The program aims to increase Vietnam’s power supply resourced from environmentally-friendly energies. About 25 sub-projects on developing renewable energies of Vietnamese private businesses can gain access to REDP’s capital through local commercial banks. Speaking at the signing ceremony, Deputy Minister of Industry and Trade Hoang Quoc Vuong said Vietnam is rich in renewable energies but the potentials are yet to be tapped fully. Ambassador and Head of Seco Beatrice Maser Mallor said that REDP would also focus on developing a legal framework on renewable energy sources in Vietnam in a bid to attract more investment into this field. To date, seven mini hydropower projets in Vietnam have obtained loans totaling $55 million from REDP while ten others with a combined capacity of 109 MW are waiting for finance of $65 million from the program. (Dau tu – Investment May 11 p2, Kinh te Vietnam & the gioi – Vietnam & World Economy May 11 p4, Tuoi tre – Youth May 11 p16, An ninh thu do – Capital Security May 11 p7)
