Approval of Financial Mechanism of Power Transmission Investment Program Tranche 3

Deputy Prime Minister Vuong Dinh Hue has just approved the financial mechanism and onlending terms and conditions of the loan from the Asian Development Bank (ADB) – Power Transmission Investment Program Tranche 3

The Deputy Prime Minister assigned the Ministry of Finance to study the proposal made by the Vietnam Bank for Industry and Trade (Vietinbank) on implementing the Power Transmission Investment Program Tranche 3 by taking advantage of the available appraisal results, in order to avoid the prolonged disbursement schedule and project implementation and soon reporting to the Prime Minister on the selection of a suitable onlending institution for the Power Transmission Investment Program Tranche 3.

Transmission grid has been significantly developed over the past years

 

he Ministry of Industry and Trade promptly reported the Prime Minister and informed the Ministry of Finance and relating agencies on policy changes which affected the efficiency of the project and the approved financial mechanism.

The Deputy Prime Minister assigned the National Power Transmission Corporation (EVNNPT) to take responsibility for arranging adequate counterpart fund and sources for repayment (principal, interest and fees), to closely coordinate with the onlending institution in finalizing all procedures for ensuring the secured loan and  that the project shall be efficiently implemented as scheduled. EVNNPT shall report the project deployment to all the relating agencies in accordance with current regulations.   

It is known that the "Power Transmission Investment Program tranche 3" is under the Multi-tranche Financing Facility for the Power Transmission Investment Program financed by ADB for the period 2011-2020 with a total investment of USD 1.75 billion divided into four tranches for the whole program, in which the funded amount by ADB is USD 730 million from the Ordinary Capital Resources (OCR).

The program will contribute in efficiently developing the power transmission system, to meet the power demand for the entire country, to maintain the safety and reliability of the power system and enhance the quality thereof.   

This project is the tranche following tranche 1 and tranche 2 within the framework of the “Power Transmission Investment Program”  

The objective of the project is to expand the   power transmission system throughout Vietnam to evacuate power from the new power plants, to enhance reliability, to fix overloaded situations and to ensure the transmission capacity of the national power transmission system. The line agency of the project is the Ministry of Industry and Trade and the project executing agency is the National Power Transmission Corporation.


  • 08/12/2016 05:05
  • evn.com.vn
  • 991