The World Bank (WB) will provide 202 million USD for Vietnam to implement a renewable energy development project between now and 2013. An agreement to this effect was signed between the Governor of the State Bank of Vietnam (SBV) Nguyen Van Giau and the WB’s Director in Vietnam, Victoria Kwakwa in Hanoi on June 16.
Under the agreement, the project, capitalised at 318 million USD, aims to provide more renewable electricity for the national grid to ensure Vietnam’s social development and protect the environment.
As well as the funding from the WB, the Australian government will contribute 2.3 million USD and the remaining will come from Vietnam.
The money will mainly be used to implement 25 mini-projects, most of them small-sized hydro-power plants that are designed to have a combined capacity of 250 MW. They are expected to generate 2,900 MW of electricity each year. The others are bio-gas and wind energy development projects.
In addition, the project will help Vietnamese agencies to develop their policies and measures to develop renewable energies as well as improve the management and control of renewable energy projects.
Besides the Ministry of Industry and Trade, three domestic banks, including the Bank for Investment and Development of Vietnam (BIDV), the Bank for Foreign Trade of Vietnam (Vietcombank) and the Saigon Thuong Tin Commercial Bank will jointly implement the project.
Speaking at the signing ceremony, WB Director Kwakwa spoke highly of Vietnam’s potential for developing renewable energy projects, saying that the project will help the Vietnamese government to diversify its power supplies and limit the impact of climate change on the environment while creating better conditions for private investors to get involved in renewable energy development, thus increasing the benefits to the consumer.
She also stated that the WB attaches a lot of importance to its relationship with Vietnam.