Switzerland helps VN develop renewable energy

May 10, 2011 | 20:48

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Switzerland’s State Secretariat for Economic Affairs (Seco) has granted a non-refundable aid of $2.43 million for the renewable energy development program (Redp) in Vietnam.

Illustration photo

The agreement to this effect was signed by the Vietnamese Ministry of Industry and Trade (MoIT) and Seco in Hanoi on May 10, in the presence of World Bank (WB) Country Director Victoria Kwakwa.

Redp has total investment capital of $318.3 million, with $202.2 million financed by WB-based International Development Association, $2.43 million from Seco and the rest coming from Vietnam.

It aims to increase the country’s power supply resourced from renewable energies on the back of sustainable financial, environment and social backgrounds.

About 25 sub-projects of Vietnamese private businesses can gain access to Redp’s capital through local commercial banks.

Speaking at the signing ceremony, Deputy Minister of Industry and Trade Hoang Quoc Vuong said Viet nam is rich in renewable energies but the potentials are yet to be tapped fully.

Ambassador and Head of Seco Beatrice Maser Mallor said that the program also focuses on developing a transparent legal framework in Vietnam in a bid to attract investment from the private sector into this field.

Seven mini hydro-power projects have so far obtained loans totaling $55 million from Redp. Besides, ten other power projects with total designed capacity of 109 MW have submitted applications for loans of up to $65 million from the program.

VGP

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