WB approves US$102 million loan for energy efficiency project
HANOI - The World Bank (WB) on April 17 approved a US$102 million loan for the Vietnamese Government to support industrial enterprises to adopt energy-efficient technologies and practices.
In this project, industrial enterprises can access a new line of credit to fund their purchases of technologies for improving energy efficiency and production optimization, thus reducing energy consumption and production costs and increasing their competitiveness on 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. Therefore, financing institutions can lend to industrial energy-efficiency investments, thereby scaling 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 WB’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, Dione added.
Funding under this project will be provided to participating financial institutions, which will then lend to industrial enterprises to invest in energy-efficient subprojects.