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Dec 22, 2019 / 09:55

Vietnam needs US$10 billion a year for energy sector

The deputy PM said Vietnam needs to mobilize domestic financial sources and credits to develop 8,000 megawatts per year.

Vietnam is seeking the World Bank’s finance for its growing energy sector which needs roughly US$9-US$10 billion per year.

Deputy Prime Minister Trinh Dinh Dung and Ranjit Lamech, Regional Director of the World Bank’s Infrastructure Department in the East Asia and Pacific region, in Hanoi on Dec. 20. Photo: VNA 

Vietnam needs to mobilize domestic financial sources and loans to fulfil its power generation target which is 8,000 megawatts per year, Deputy Prime Minister Trinh Dinh Dung told World Bank officials in Hanoi Friday.

Vietnam expects to get the World Bank’s support in financial sources, technical assistance, and regulatory framework to feed the country’s economic growth, Dung said at a meeting with Ranjit Lamech, Regional Director of the World Bank’s Infrastructure Department in the East Asia and Pacific region and the World Bank Country Director for Vietnam Ousmane Dione.

Both World Bank officials agreed with the Deputy PM’s emphasis on the importance of energy sector in the development, expressing impression on Vietnam’s successful energy programs, mostly renewable ones.

Working as an energy expert with three decades of experience in financing projects and advising governments, energy utilities and private sector partners on energy security, energy efficiency, and regional energy reforms, Ranjit Lamech suggested that the Vietnamese government should continue issuing policies on mobilizing capital in energy sector.

In addition, the World Bank’s experts emphasized the need to tackle problems in large power projects to soon put them into operation and solve overload in power transmission in the near future.

Deputy PM Dung said the government of Vietnam is aware of the power shortage if existing problems are not aggessively solved, mainly in developing power generation and transmission projects.

He noted that Vietnam is taking different measures to ensure enough power for economic growth with a focus on revising the existing power plan with a more specific power structure and safe power system; investing in key projects; completing legal system with special mechanisms for energy investment, especially renewables.

The World Bank has been supporting Vietnam in energy sector since 1995. It has financed Vietnam US$3.92 billion in 12 power generation, rural electrification, power distribution and transmission programs and projects. Currently, the bank continues extending its financial support for a number of power projects in the country.