Vietnam in dire need for $10B for power grids in 2010-2015
Vietnam is forecast to need $10 billion for power grid development in the 2010-2015 period, which is between five and seven times higher than the investment for the past five years.
The Ministry of Industry and Trade’s Institute of Energy was cited by the Vietnam News Agency as saying Thursday that the state-owned Vietnam National Power Transmission Corporation (NPT) has mobilized a combined $1.789 billion.
NPT is seeking ways to mobilize between VND55 trillion and VND64 trillion to ensure capital for power grid projects in the next five years, regardless of the need for VND25 trillion for debt payments, General Director Nguyen Ha Dong said.
The company plans to put into operation 189 power grid works, raise capacity of transformer stations to a combined 35,125 MVA, and run 5,307 kilometers of power lines by 2015, Dong attributed.
NPT is finding hard to borrow capital for its projects as only four out of total 116 domestic financial institutions are affordable to lend it VND1.5 trillion and more for a project while others have to form alliances for the lending, he noted.
He added that with a registered capital of VND7.2-trillion, NPT has to call for approval for loans worth over VND21.6 trillion while its total debts have been close to the cap. (Vietnam & World Economy)
Tags: Vietnam electricity, Vietnam energy, Vietnam power grids
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