HA NOI – The National Power Transmission (NPT) said it has invested VND9.3 trillion to build a 500kV electric grid connecting five provinces and Ho Chi Minh City.
The 437km network, which will spread across the provinces of Gia Lai, Dac Lak, Dak Nong, Binh Phuoc, Binh Duong and Ho Chi Minh City, will increase the electric back-up capacity in the southern part of the country for the 2014-2015 period, NPT said.
It will also boost power connectivity within the country and throughout Viet Nam, Laos and Cambodia after 2015, the company, which is a subsidiary of Electricity of Viet Nam, said.
Meanwhile, the Project Management Board of Central Power Projects (AMT), also a subsidiary of EVN, will act on behalf of NPT to implement the project.
While the equipment side of the project will be funded by the Asia Development Bank (ADB), the installation and ground clearance will be financed by Viet Nam Bank for Industry and Trade (Vietinbank) and Viet Nam Development Bank (VDB).
The project, codenamed 500kv Pleiku-My Phuoc – Cau Bong, will also include maintenance of 8km of the existing 500kv grid in Ho Chi Minh City and two power transmission stations in Pleiku and Cau Bong.
Project constructionwill be completed by 2013 and will be supervised by the number two and number four Electricity Construction Consultancy companies.
Electricity of Viet Nam (EVN) last month said it will borrow US$3 billion in official development assistance (ODA) sources and foreign commercial banks in order to finance electricity projects this year.
Lenders will include the World Bank, the German Reconstruction Bank, the Asian Development Bank, the French Development Agency and the Japan International Co-operation Agency.
Funds will be used to complete the O Mon 3 and 4 thermoelectric projects, improve the national distribution grid and assist the electricity sector in reforming policy.
On Tuesday EVN announced they will target reducing production costs by VND1.8 trillion (US$85.7 million) in 2012.
EVN's total capital expenditure this year is estimated at a total of VND75.5 trillion ($3.5 billion), an increase of 18.7 per cent over last year. – VNS