World Bank Approves $102 Million in Financing to Help Vietnam Improve Energy Efficiency in Industrial Sector

World Bank Approves $102 Million in Financing to Help Vietnam Improve Energy
Efficiency in Industrial Sector

The World Bank's Board of Executive Directors today approved a $102 million
loan to the government of Vietnam to support the effort of industrial
enterprises to adopt energy-efficiency technologies and practices.

Under this project, industrial enterprises can access a new line of credit
to fund their purchases of energy-efficiency and production-optimization
technologies, thus reducing energy consumption and production costs and
increasing their overall competitiveness in the domestic and international
markets.

With the support of the project, financial institutions and industrial
enterprises will be able to prepare, evaluate and appraise energy efficiency
projects. This will create a new line of business for financing
institutions, providing loans to support industrial energy-efficiency
investments, which will enable them to scale up energy-efficiency lending to
industries.

"We are committed to support Vietnam's drive to meet its future energy
demand, and improving energy efficiency is the single best and cheapest
option, because it will help consumers save energy and reduce the need for
new thermal power generation, while also reducing pollution and mitigating
the risks of climate change," said Ousmane Dione, the World Bank's Country
Director for Vietnam. "If stronger programs and policies are put in place,
businesses would also have the incentive to cut down on wasteful practices
and adopt more energy-efficient technologies."

Funding under this project will be provided to participating financial
institutions, which will then lend to industrial enterprises to invest in
energy-efficient subprojects.

Of the $156.30 million, $100 million comes from the World Bank's
International Bank for Reconstruction and Development, the financing
resource for middle-income countries, and $1.7 million is from the
International Development Association, the Bank's fund for the poorest
countries. The rest of the project's funding will come from the Vietnam
government and participating financial institutions.

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Link to Original Article:
http://www.satprnews.com/2017/04/15/world-bank-approves-102-million-in-finan
cing-to-help-vietnam-improve-energy-efficiency-in-industrial-sector/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com