The World Bank (WB) hasshown its close collaboration with Vietnam in improving the nationalpower network operation by providing 449 million USD to the country’selectricity distribution efficiency project.

Thefunding formed a credit agreement designed the project, to which the WBsigned with the Electricity of Vietnam (EVN) in Hanoi on November 8.

The electricity distribution efficiency project isestimated to cost 800 million USD in total, of which 30 million USD willcome from the WB’s Clean Technology Fund (CTF) to finance the use ofsmart grid technologies.

The Australian Agency for InternationalDevelopment (AusAID) will provide 8 million USD to fund technicalassistance and capacity building while the Vietnamese Government willcover the remaining 313 million USD.

Theproject will focus on improving the efficiency of the national powergrid to provide users across Vietnam with better quality andreliable services and to reduce greenhouse gas emissions.

It covers construction and reinforcement of electricity distributionnetworks, use of smart grid technologies in distribution, technicalassistance and capacity building for the Electricity RegulatoryAuthority of Vietnam (ERAV) and five power companies to shape effectivepower usage management programmes.

The WB has, in the pastdecade, worked closely with the Vietnamese Government in expanding thenational power grid coverage from 50 percent in 1996 to 97 percent in2011./.