The project RE II will provide electricity to some communes which previously had to use the solar power. Photo: The solar power supply in combination with wind power at An Nghia commune of An Lao district. Photo N.T

The Rural Electricity II (RE II) project with the loan from World Bank (WB) is for newly investment and improvement of the electricity in rural areas. 25 communes in Binh Dinh will be invested at the first phase of the project. Binh Dinh newspaper reporter interviewed the director of Binh Dinh Industry Department and head of the management board of project RE II, Nguyen Kim Phuong, on this issue.

Q: Could you brief about the project RE II?

A: The aim of the project is to newly invest and improve the grids in communes where there is no the national grid or the system was downgraded. Simultaneously, the project will also provide power for the expansion of production and improvement of the socio-economic development in these communes.

This is a project with the WB loan, so the plan for paying the debt is specified. Provinces will be responsible for using the capital effectively and refunding the Central budget with the interest of 1% in VND per year within 20 years and the grace period of 5 years. The work, after being finished, will be handed over to the power management administration in localities and the annual depreciation will be partly used to pay the loan.

Q: How will the project be conducted in Binh Dinh?

A: In Binh Dinh, many communes expressed their expectations to join in the project. However, only 25 communes in which there is no the national grid or the power system is downgraded have been selected to take part in the project with the total loan of US$ 5.1 million. The provincial management administration of RE II project had completed all formalities which were approved by WB and the provincial People’s Committee.

The provincial management administration of RE II project has recently opened the bid for constructing the grids in 9 communes of 3 mountainous districts, including Canh Thuan, Canh Lien (Van Canh district), Vinh Hiep, Vinh Son, Vinh Quang (Vinh Thanh), and An Hoa, An Quang, An Nghia, An Toan (An Lao). The grids will have been finished in 2007. For the remaining communes: Hoai Xuan, Hoai Tan (Hoai Nhon district), My Cat, My Thang, My Thanh (Phu My), Cat Nhon, Cat Chanh, Cat Thang (Phu Cat), Phuoc Quang, Phuoc Hung (Tuy Phuoc), Nhon My, Nhon Phuc (An Nhon), Binh Tan, Tay An (Tay Son), An Duc, An Thanh (Hoai An), the administration will finish formalities in the coming time and we’ll try to construct the grid in 2008.

Q: What will local residents benefit from this project?

A: The rural electricity system in Binh Dinh was built long time ago with different sources of capital. Moreover, the equipments don’t meet the technical specifications and the expenditure for the annual restore is not enough. The grid, therefore, has been downgraded. Alongside this, the management of the grid is inadequate, which has caused the loss of electrical energy in some rural areas in the province.

When the project is conducted in the above-mentioned communes, they will have chance to improve the grid and technical factors synchronously. The loss of electrical energy will, thus, be reduced and the voltage will become more stable. All will contribute to promote the socio-economic growth in the localities.

• Interviewer: Ngoc Thai
• Translated by Hong Quang