World Bank returns to funding energy generation in Viet Nam
This is the first hydropower project the Bank has financed in Vietnam over the past decade.
Approved by the Bank on April 26 this year, the 260 Megawatts multipurpose hydropower project will help meet growing domestic demand for electricity and bring flood control and irrigation benefits to rural and poor communities in the northern province of Thanh Hoa, marking the Bank’s return to funding energy generation in Vietnam.
Through TSHPP, the Bank will also provide technical support to Vietnam Electricity in improving the performance of its hydropower projects in dam safety and operations as well as in adopting international standards in social and environmental practices.
“Trung Son project will help improve Vietnam’s energy mix and energy security as part of the least cost solution in meeting the country’s energy needs. Furthermore, it will also contribute to the climate change agenda by generating clean energy and avoiding an estimated 1 million tonnes of CO2 emissions per year", said Ms Victoria Kwakwa, World Bank Country Director for Vietnam.The TSHPP includes a robust development program to address the social impact from Trung Son’s construction and provide support to people living in the project area.
“Hydropower - when done well - offers a clean, affordable and reliable source of electricity to help drive growth, poverty reduction and sustainable development. Through this project, we are expected to help provide technical support in improving the performance of its hydropower projects in dam safety and operations as well as in adopting international standards in social and environmental practices”, Ms Victoria Kwakwa added.
According to the Bank, the project includes the construction of infrastructure: roads, power supply, water service for households, health, irrigation, schools and housing in the resettlement areas. Additionally, an environmental management plan has been put in place to address the preservation and mitigation measures of three natural reserves of high biodiversity surrounding the project site.
The financing is being provided with 27 years maturity and 6 years of grace period for loan repayment./.