MoF authorises BIDV to refinance $500 million for improving the grid in key economic regions.— Photo sbv.gov.vn

HA NOI (Biz Hub) — The Ministry of Finance has authorised the Bank for Investment and Development of Viet Nam (BIDV) to refinance US$500 million for improving the grid in key economic regions.

The two parties signed the refinancing contract on March 26 and the loan will be granted by the World Bank for disbursements during the 2015 to 2020 period.

The project will also help enhance capacity and stability in the performance of the electricity transmission systems in Ha Noi and HCM City, as well as the central region and the Mekong (Cuu Long) Delta.

The National Power Transmission Corporation, an affiliate of Electricity of Viet Nam, will be responsible for upgrading control systems for 500 kilovolts (kV) and 220kV to reduce power failure incidents. The project is also aimed at intensifying operational and financial abilities of the firm.

The State Bank of Viet Nam said BIDV was entrusted with the contract because it had significant experience in refinancing official development assistance (ODA) and other preferential capital sources that the Government received from international organisations.

In the electricity industry alone, BIDV has already been designated for distributing a $312 million loan of the World Bank, and $480 million in loans from the Asian Development Bank. — VNS