The International Partners Group (IPG), co-leaded by the European Union (EU) and the United Kingdom (UK), has welcomed progress made on two JETP supported investment projects in Vietnam, with the signing of agreements worth €547m (US$624m), on the sidelines of the French President’s visit to Vietnam. 

A Memorandum of Understanding (MoU) was signed between Electricité du Vietnam (EVN) and the Agence Française de Développement (AFD) as coordinator of six IPG Development Finance Institutions (AFD, EIB, JICA, KfW, CDP, and Proparco) to provide up to €480m (US$547m) for long term financing to support the construction of the first 1.2 GW pumped-storage hydropower project in Vietnam, located in Bac Ai, Ninh Thuan province. The project also benefits from €10m (US$11.4m) of technical assistance, funded by the EU and managed by AFD. 

In addition, a €67m (US$76m) Credit Facility Agreement was signed between Vietnam Electricity National Power Transmission Corporation (EVN NPT) and AFD to build 500 kV transmission lines and substations across the Binh Duong and Dong Nai provinces. This project will increase Vietnam’s transmission network’s capacity to integrate renewable energy and deliver reliable electricity in southern Vietnam.

In its recently revised of National Power Development Plan (PDP8), Vietnam envisages to tackle emissions, limit coal usage and increase the share of renewables in its power mix.