The project will finance transmission lines and substations at voltage levels of 220 and 500 kilovolts to increase the transport capacity and reliability of the electric grid.

It will finance about 15% of Vietnam’s transmission network growth from 2015 to 2020, targeting key investment needs in major economic development areas where transmission overloads are already present or will happen in the very short term.

In addition, the project will support Smart Grid technologies for monitoring, control, and protection equipment to improve reliability and reduce electricity outages.

At the same time, the project will also help build the capacity of the National Power Transmission Company by supporting its operational and financial independence, in line with the power sector reforms programme, which foresees a wholesale competitive market to be piloted by 2015.