Germany pledges preferential loans to VN’s rural power upgrading

VGP - Germany pledges to offering Việt Nam a soft loan of €120 million to upgrade its rural electricity network and environment, according to a notice released by the German Embassy in Hà Nội on November 1.

December 03, 2009 6:07 PM GMT+7

The rural power grid upgrading project is carried out in 2,000 communes throughout Việt Nam

for three years – Illustration photo

The rural electricity project, lasting for 2-3 years, will benefit some 2.9 million households in 2,000 communes of 45 cities and provinces nationwide. It aims to halve the electricity loss to 15%, annually saving some 400 million kWh or VND350-400 billion.

The latest financial commitment has raised Germany’s total amount of money for Việt Nam’s environment activities in 2009 to €141 million. The loan has a term of 12 years, including three years of grace.

Germany has assisted Việt Nam in investing in advanced and environmentally friendly technologies to improve effective use of energies, especially electric power, German ambassador Rolf Schulze said.

A website about Việt Nam-Germany development cooperation was launched at www.gdc-vietnam.org in Vietnamese, Germany, and English, in a move to celebrate the 35^th anniversary of the Việt Nam-Germany diplomatic relations in 2010.

By Ngọc Vân