ID :
25669
Tue, 10/21/2008 - 10:02
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https://oananews.org//node/25669
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JAPAN, ADB back a financing programme for Laos and Vietnam
JAPAN, ADB back a financing programme for Laos and Vietnam
(KPL) Japan and the Asian Development Bank (ADB) will help develop a financing program for a $240 million power transmission project that will enable Lao People’s Democratic Republic (Lao PDR) to export hydroelectric power to neighboring Viet Nam, where electricity demand is growing, according to ADB’s press release
The Japan Special Fund, through ADB, will provide a $1 million grant while the governments of Lao PDR and Viet Nam will each allot $150,000 to complete the funding requirement for the program. The financing program will involve the preparation of two loans – one each for Lao PDR and Viet Nam.
The loans will be structured and scheduled to suit the commercial operation schedule of the 11 hydropower developers that will provide the 1,000 MW of electricity targeted for export. A suitable model and arrangements for the operation and maintenance of the transmission facilities to be shared by the two countries will also be prepared. Xavier Humbert, Senior Energy Specialist of ADB’s Southeast Asia Department, said the estimated cost of developing the power transmission facilities will be around $150 million in Lao PDR and $120 million in Viet Nam. “About $55 million have been included in ADB’s 2010 lending program for financing the project, but the final financing plan for the development of the power transmission facilities still needs to be finalized after discussion with potential co-financiers in both countries,” said Mr. Humbert. The power transmission project consists of four components. The first is construction of about 65-kilometer (km), 500 kilovolt (kV) double circuit transmission line, which will run from the Ban Sok substation in Lao PDR to the Viet Nam border.
The second component consists of about 100 km, 500 kV double circuit transmission line from the Lao PDR border to the Pleiku substation in Viet Nam. The third component will be a 500/230 kV Ban Sok substation in Lao PDR, while the final component will extend the Pleiku substation in Viet Nam. Lao PDR has significant hydropower potential, estimated at 18,000 MW, but only 663 MW have been tapped so far. “Maximizing the country’s hydroelectric power potential is challenging due to financing constraints,” said Mr. Humbert. “The government recognizes this and has been strongly promoting private sector involvement.” Given soft domestic demand, most of Lao PDR’s hydropower is for export. Earnings from the exports, in turn, help fund projects that will bring electricity to rural areas, as well as social development and poverty reduction efforts.
With an average annual growth rate of 7.5% over the past decade, Viet Nam is faced with a growing electricity supply deficit. Its Sixth Power Development Plan (2006-2020) estimates domestic power demand to rise 16% annually from 2006 to 2010, by 11% a year from 2011 to 2015, and by 9% annually until 2020. To meet power demand, Viet Nam is turning to its neighbors, including Lao PDR, to purchase electricity. In March, both countries signed a sale agreement involving as much as 5,000 MW by 2020. ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2007, it approved $10.1 billion of loans, $673 million of grant projects, and technical assistance amounting to $243 million.
(KPL) Japan and the Asian Development Bank (ADB) will help develop a financing program for a $240 million power transmission project that will enable Lao People’s Democratic Republic (Lao PDR) to export hydroelectric power to neighboring Viet Nam, where electricity demand is growing, according to ADB’s press release
The Japan Special Fund, through ADB, will provide a $1 million grant while the governments of Lao PDR and Viet Nam will each allot $150,000 to complete the funding requirement for the program. The financing program will involve the preparation of two loans – one each for Lao PDR and Viet Nam.
The loans will be structured and scheduled to suit the commercial operation schedule of the 11 hydropower developers that will provide the 1,000 MW of electricity targeted for export. A suitable model and arrangements for the operation and maintenance of the transmission facilities to be shared by the two countries will also be prepared. Xavier Humbert, Senior Energy Specialist of ADB’s Southeast Asia Department, said the estimated cost of developing the power transmission facilities will be around $150 million in Lao PDR and $120 million in Viet Nam. “About $55 million have been included in ADB’s 2010 lending program for financing the project, but the final financing plan for the development of the power transmission facilities still needs to be finalized after discussion with potential co-financiers in both countries,” said Mr. Humbert. The power transmission project consists of four components. The first is construction of about 65-kilometer (km), 500 kilovolt (kV) double circuit transmission line, which will run from the Ban Sok substation in Lao PDR to the Viet Nam border.
The second component consists of about 100 km, 500 kV double circuit transmission line from the Lao PDR border to the Pleiku substation in Viet Nam. The third component will be a 500/230 kV Ban Sok substation in Lao PDR, while the final component will extend the Pleiku substation in Viet Nam. Lao PDR has significant hydropower potential, estimated at 18,000 MW, but only 663 MW have been tapped so far. “Maximizing the country’s hydroelectric power potential is challenging due to financing constraints,” said Mr. Humbert. “The government recognizes this and has been strongly promoting private sector involvement.” Given soft domestic demand, most of Lao PDR’s hydropower is for export. Earnings from the exports, in turn, help fund projects that will bring electricity to rural areas, as well as social development and poverty reduction efforts.
With an average annual growth rate of 7.5% over the past decade, Viet Nam is faced with a growing electricity supply deficit. Its Sixth Power Development Plan (2006-2020) estimates domestic power demand to rise 16% annually from 2006 to 2010, by 11% a year from 2011 to 2015, and by 9% annually until 2020. To meet power demand, Viet Nam is turning to its neighbors, including Lao PDR, to purchase electricity. In March, both countries signed a sale agreement involving as much as 5,000 MW by 2020. ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2007, it approved $10.1 billion of loans, $673 million of grant projects, and technical assistance amounting to $243 million.
