According to a report by the Energy Department under the Ministry of Industry and Trade, by August 2010, the Rural Energy Project II (EPII) and Amended Rural Energy Project II had been carried out in 1,566 communes in 25 provinces and cities, 366 communes more than expected.

The projects’ purpose is to improve quality of electricity supply services at reasonable price for rural areas. Accordingly, electricity network in rural areas will be improved and broadened and models of electricity supply and consumption management will be established to increase rural electricity management capacity for local authorities.

By far, most of provinces and cities have finished the Rural Energy Project II. 90-100 percent of communes in Ca Mau, Bac Giang, Hanoi, Ha Tinh, Ha Nam, Hoa Binh, Hung Yen, Lao Cai, Phu THo, Nghe An, Thai Binh, Thanh Hoa, Vinh Phuc, Quang Binh, Thua Thien Hue and Binh Dinh have electricity. Some provinces including Lai Chau, Cao Bang, Dien Bien, Hai Duong, Quang Nam, Quang Ngai and Phu Yen have had some difficulties such as unfavorable terrain, price slippage and delayed ground clearance, therefore the project has been delayed. The provinces are striving to finish the low-frequency electricity network within 2010.

According to the World Bank (WB), US$180.860 million equal to 80 percent of investment capital which was sourced from WB has been disbursed to construct medium and low tension electricity networks. As for the Amended Rural Energy Project II, the Ministry of Industry and Trade and WB have granted capital for 21/25 provinces to implement the project. At present, 17 of those have approved investment project and remainders including Quang Binh, Thanh Hoa, Ha Noi, Hung Yen, Dien Bien, Vinh Phuc, Lao Cai and Phu Tho are inviting tenders and have started construction.

At a meeting between the Ministry of Industry and Trade and investors, the ministry and investors discussed and learnt from experiences in the project implementation, ways to overcome difficulties, especially problems in capital disbursement and project completion procedures.

By Thuy Tien