WB fund for energy saving

WB fund for energy saving - 

According to information of VNF website, the World Bank (WB) Directorate has approved a $102 million loan for the Vietnamese government to support the efforts of industrial enterprises in applying energy saving technologies and solutions.

Through this project, Vietnamese industrial enterprises will approach a new capital source to invest in energy efficient technologies and production optimizing, and thereby to reduce energy consumption, production costs and increase competitiveness in domestic and international markets.

With the support of the project, the financial institutions and enterprises in industrial sector can prepare to value and appraise energy saving projects. According to WB, this project will create a new business direction for financial institutions to provide loans for energy efficient investments in the industry, helping them to expand their lending industries for implementing projects on energy efficiency.

Mr. Ousmane Dione, WB Director in Viet Nam, said: “We commit to support Vietnam to meet energy demand in the future, and improving energy efficiency is the best and cheapest option, because it will help consumers to save energy, reduce the need to build new thermal power plants, and at the same time, reduce pollution and mitigate the risks of climate change.

If there more powerful programs and policies are offered, enterprises will have a motive to cut down energy waste and apply more energy efficient technologies”

The VNF has also informed that, the loan from the project will be provided for financial institutions participating in the project, then the institutions relend to the industrial enterprises for investing the energy saving subprojects.

In total capital of $156.30 million for the project, $100 million is from the Bank for Reconstruction and International Development under WB - a financial source for middle-income countries and $1.7 millions from the International Development Association – a fund of WB for Poverty countries. The rest is Vietnam's counterpart fund from the financial institutions and industrial enterprises involved in the project.

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