EVNNPT and AFD sign agreement to expand and modernize the power transmission grid

(Chinhphu.vn)- The French Development Agency (AFD) and the National Power Transmission Corporation (EVNNPT) have just signed a funding agreement worth 67 million Euros to support the expansion and modernization of the power transmission network in Vietnam.

The ceremony of awarding the credit contract to finance the Southern Power Transmission Grid Enhancement Project between AFD and EVNNPT witnessed by the President of France andthe President of the Socialist Republic of Vietnam - Photo: VNA

This is one of the activities during the official visit of French President Emmanuel Macron to Vietnam, right after the meeting with President of the Socialist Republic of Vietnam - Luong Cuong at the Presidential Palace.

Mr. Rémy Rioux, General Director of AFD and Mr. Pham Le Phu, General Director of EVNNPT, represented the two sides to sign the agreement. This event marks an important step forward in the strategic partnership between France and Vietnam.

The investment will finance three subprojects, including two new 500kV substations (TSAs) and related transmission lines located in two fast-growing southern provinces of Binh Duong and Dong Nai.

The project aims to enhance grid stability and improve operational efficiency, thereby meeting essential infrastructure needs to sustain economic growth and promote the energy transition in Vietnam.

This agreement reaffirms France's commitment within the framework of the Partnership for a Just Energy Transition (JETP), under which France commits to mobilizing up to 500 million Euros in concessional loans to support Vietnam's energy transition in the period 2023–2027.

This is the first “JETP” project approved by an international partner and is also the first public funding among financial commitments made by the international community to support JETP Vietnam from 2022.

This project also demonstrates Vietnam’s strong determination to move towards a low-carbon, resilient and sustainable energy future, in line with the country’s carbon neutrality goals.

This funding marks a new step forward in the implementation of JETP and also demonstrates the long-term cooperation between AFD and EVNNPT in developing a more modern, reliable and environmentally friendly electricity infrastructure system.

Vietnam is emerging as one of the world’s fastest growing economies, with strong industrial and commercial growth driving up demand for electricity. By 2030, this demand is expected to double compared to 2020.

In addition to financial support, AFD supports technical cooperation between the French Electricity Transmission Agency (RTE) and EVNNPT. This cooperation will exchange expertise between EVNNPT and French experts who are leading international experts, focusing on the following areas: Technical standards and equipment specifications, ensuring that Vietnam's power infrastructure complies with the highest international standards; cybersecurity measures, to enhance the resilience of energy infrastructure in the context of the digitalization of the power grid system; Safety, health and environment (HSE) practices, helping to optimize sustainable operations and comply with international standards.

AFD is the French public financial institution, implementing the French Government's development cooperation and sustainable investment policy. Through financing public projects, supporting non-governmental organizations (NGOs), scientific research, training on sustainable development and raising awareness in France, AFD finances, accompanies and promotes transformational initiatives towards a more equitable and sustainable world.

Toan Thang

Source: https://baochinhphu.vn/evnnpt-va-afd-ky-thoa-thuan-mo-ronghien-dai-hoa-luoi-truyen-tai-dien-102250528071120922.htm