Vietnam signs US$200M credit deal with WB for power policy program

The State Bank of Vietnam has signed a credit contract to borrow US$200 million from the World Bank (WB) for the first phase of a program to support electricity policy development.

The program aims to assist the government of Vietnam in developing a competitive power generation market, restructuring the electricity industry, and making new power price table to boost investment in the industry, the government said on its website.

Vietnam will launch a pilot competitive power generation market during the first half of 2011, Deputy Minister of Industry and Trade Do Huu Hao said, adding that the market is expected to start commercial operation by end-2011.

The pilot market would provide low-risk measure to test market structure, its rules and structures as well as identify and provide remedies for any deficiencies, he attributed, noting that power price would be adjusted quarterly.

Vietnam is forecast to become an energy importer by 2015, although it is still boosting coal exports and is estimated to squander around US$1 million worth of energy each day due to inefficient energy use.

Tags: Vietnam energy, Vietnam power policy program

Posted by VBN on Aug 24 2010. Filed under Energy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry