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China, Vietnam Ink Electricity Supply Deal

The China Southern Power Grid Company will supply Vietnam with annual electricity of 1.3 billion kwh in a purchase term of ten years, said sources with the State-owned Assets Supervision and Administration Commission (SASAC).

Under an agreement signed between the Southern Power Grid and the Vietnam National Power Corporation, the Chinese company will supply electricity to six provinces in northern Vietnam via 220 kv electrical lines, with annual sales income topping US$50 million.

The two sides also signed a memorandum of understanding on stepping up cooperation and investment in the power sector.

The Sino-Vietnamese cooperation in the power sector constituted an important component in the power cooperation in the Greater Mekong River sub-region, said a leading person with the China Southern Power Grid, adding that joint efforts to develop other power grid projects are going on.

The Chinese power grid company started electricity supply to Vietnam in September 2004.

(Xinhua News Agency November 9, 2005)

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