The project, part of a ten year power purchase deal between the two countries, is scheduled to commence operations in April 2007. The first transmission line from Yunnan to Vietnam via Guangxi is scheduled for operations by October.
The report comes as the World Bank (WB) and Vietnam finalise a $200 million loan to develop the transmission and distribution network in the country, part of a $323 million project which is expected to be completed by 2010.
The project aims to connect new generation to the national grid, modernise system operations and raise power quality as well as help construct the O Mon transformer station and the Cai Lay-Nha Be 500kV transmission line in Southern Vietnam.
In another financing move state-owned power giant Electricity of Vietnam Corp (EVN) plans to issue bonds worth $22 million this month to raise investment funds for hydro projects. Each 5-year EVN bond will have a face value of around $6 and a 5-year term. The bond’s interest rate for the first year is 9.6%. The Industrial and Commercial Bank will guarantee the repayment and issuance of the bonds.
