Monday, June 30, 2008

ADB lends Vietnam $195m for hydroelectric plant

The Asian Development Bank (ADB) will provide a US$196 million loan to Vietnam for a hydroelectric project in Quang Nam Province, the Manila-based lender said Friday.

The 156-megawatt Song Bung 4 hydropower project will be built on the Song Bung River in the central Vietnamese province and is expected to be completed by 2013, the ADB said in a statement.

“Vietnam has an acute need formore power generation,” statement said.

“Electricity demand has grown at an average rate of 15 percent per annum and it is expected to maintain a high growth rate until 2015.

“Affordable and reliable electricity is essential to Vietnam’s continued economic growth and poverty reduction efforts,” said ADB Energy Specialist Pradeep Perera.

“This project will improve the stability and reliability of the country’s power network, and will further reduce its dependency on fossil fuels,” he said.

The project will require the relocation of four villages with 206 households, all from the Co Tu ethnic minority group.

The households are all living below the poverty line.

The ADB said the relocated people will be provided with new homes as well as clean water, schools and medical facilities.

(Source: AFP)