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Japan, ADB develop power project funding plan for Lao and Vietnam
Japan and the Asian Development Bank (ADB) will help develop a financing programme for a US$240 million power transmission project that will enable Lao People’s Democratic Republic to export hydroelectric power to neighboring Vietnam, where electricity demand is growing, ADB announced in a news release dated October 17.
The Japan Special Fund, through ADB, will provide a US$1 million grant while the governments of Laos and Vietnam will each allot US$150,000 to complete the funding requirement for the programme.
The financing program will involve the preparation of two loans – one each for Laos and Vietnam. 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 US$150 million in Laos and US$120 million in Vietnam.
“About US$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 finalised 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 Laos to the Vietnam border.
The second component consists of about 100 km, 500 kV double circuit transmission line from the Lao border to the Pleiku substation in Vietnam. The third component will be a 500/230 kV Ban Sok substation in Laos, while the final component will extend the Pleiku substation in Vietnam.
ND
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