10:02 | 27/06/2018 Industry
(VEN) - Within only 10 years of its founding, the National Power Transmission Corporation (EVNNPT) has built a modern power transmission system, contributing greatly to the country’s socioeconomic development. This success is attributed to the corporation’s efficient use of official development assistance (ODA).
|The EVNNPT has so far signed bilateral and multilateral agreements to access US$2.6 billion in ODA loans and technical assistance|
An EVNNPT leadership representative said ODA has greatly helped the development of the national power transmission system. The EVNNPT encountered many difficulties especially financial ones in its first days of operation, as it was assigned to develop electricity grids urgently, he said. The power projects required investment capital of about US$700-800 million per annum, while the corporation didn’t meet loan access conditions set by donors, banks as well as the Ministry of Finance, he added. In addition, the EVNNPT was established during the global economic crisis, when donors and credit organizations offered limited credit, so credit access became one of its biggest problems.
However, with support from the government, ministries, sectors and the Electricity of Vietnam (EVN) together with its efforts and flexibility, the EVNNPT has step by step overcome financial difficulties by closely working with such major donors. These include the World Bank (WB), the Asian Development Bank (ADB), the KfW (a German banking group), the Japan International Cooperation Agency (JICA) and the French Development Agency (AFD).
The EVNNPT has so far signed bilateral and multilateral agreements to access US$2.6 billion in ODA loans and technical assistance (3.1 times that in 2008), including US$1.15 billion from the WB, US$944 million from the ADB, US$184 million from the KfW, US$174 million from the JICA, and US$138 million from the AFD. About US$1.6 billion of the total capital has been invested.
All donors have highly rated the EVNNPT’s ODA use, saying that the corporation has efficiently and properly used the aid, reached a high ratio of already invested capital, and basically met capital arrangement, project pace and market approach requirements. This is the very thing that makes donors continue to trust and support EVNNPT.
With its efficient use of ODA, the EVNNPT not only helps Vietnam build modern, stable and sustainable electric infrastructure but also contributes to satisfying the National Assembly’s and the government’s requirements on improving ODA efficiency and ensuring public debt security.
The EVNNPT is continuing to implement signed loan agreements totaling about US$1 billion in value, including
US$500 million from the WB, US$231 million from the ADB, US$109 million from the JICA, US$90 million from the
AFD and 78 million from the KfW.