Vietnam, EU sign financing agreement

Saturday, 2017-12-02 05:05:19
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At the signing ceremony
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NDO – Vietnam and European Union (EU) signed a Financing Agreement for the ‘Energy Sector Policy Support Programs which enhance Access to Sustainable Energy in Rural Areas of Vietnam’ at a ceremony held in Brussels, Belgium on December 1.

Vietnamese Minister of Industry and Trade Tran Tuan Anh and Stefano Manservisi, Director-General of the European Commission's Directorate General for International Cooperation and Development (DG DEVCO) signed the agreement.

Accordingly, EU will grant non-refundable aid worth EUR108 million for the programme, including EUR100 million directly supported for the State budget of Vietnam, EUR7.5 million to add techniques and EUR500,000 for supervision and evaluation activities.

The programme will be implemented within three years (2018-2020) to develop and extend electricity grids along with renewable energy sources to supply electricity to rural, mountainous and island areas.

Under the programme, 23 subprojects on electricity supply to rural and mountainous areas from national electricity grids will be invested in 23 provinces; two subprojects on electricity supply to rural areas from renewable energy sources will be implemented in Cao Bang provinces and Bach Long Vi Island. In addition, two underground submarine cable subprojects will provide electricity to Tran Island in Quang Ninh province and Nhon Chau island in Binh Dinh.

The subprojects will enhance the socio-economic development in rural, moutainous and island areas, contributing to sustainable alleviation of poverty for the most difficult localities in the country.

Once the programme is completed, around 750 villages, with about 60,000 households, as well as an island district and two island communes will be supplied with electricity.

The programme also aims to improve the efficiency of the activities of the electricity sector to attract more new investors, particularly in the field of renewable energy; reduce the investment and subsidies from the State; ensure the stable and reliable power supply; and improve the management and planning capacity at all levels, ensuring sustainable energy development and the building of energy statistics systems.