Vietcombank will provide financial services to a $731million project to improve efficiencies of Viet Nam's power transmission lines. – Photo EVN NPT

HA NOI (Biz Hub) – The State Bank of Viet Nam's governor has permitted Vietcombank (VCB) to provide financial services to a World Bank-sponsored power project.

The project aims to increase the capacity, efficiency and security of electricity transmission lines in the regions that play an important role in the country's economic development, including the expanded areas of Ha Noi, HCM City, Cuu Long (Mekong) river delta and the central region.

The project is estimated to cost US$731.25 million, of which $500 million will be borrowed from the International Bank for Reconstruction and Development, an international financial institution of the World Bank which offers loans to middle-income developing countries.

The financial support from World Bank is being given as per agreement No 8417-VN, signed by the representatives of the Vietnamese government and the bank on November 12, 2014.

The National Power Transmission Corporation under the Electricity of Viet Nam will be responsible for providing the rest of the capital of $231.25 million.

The governor has asked the VCB general director to strictly follow the government's regulations on using finance resources of the official development assistance and favourable loans, as well as the World Bank's guidelines on providing financial services to the project. – VNS