21 August 2002 - Work has begun on a 500 kV transmission line that will carry power to Ho Chi Minh City and the southern provinces of Vietnam. The VND 1506bn ($100m) Electricity Corporation of Vietnam [EVN] project, which will link the Phu My power plant, in Ba Ria-Vung Tau Province, with Ho Chi Minh City, is expected to be completed by the end of next year.

It will run across Ba Ria-Vung Tau and Dong Nai provinces and Ho Chi Minh City. The project, besides the transmission line, will include the construction of Nha Be and Phu My sub-stations, and the expansion of Phu Lam Sub-station.

"The 500kV transmission line is very important and construction must be completed quickly. The line will connect the Phu My No. 3, Phu My No.2 and Phu My No. 4 plants with the national grid," said general director of EVN, Dao Van Hung.

Their combined output will be 1900 MW while the Phu My Complex is totally expected to generate 3875 MW by mid-2004. The project will be financed by official development assistance loans from the Japan Bank for International Co-operation and EVN's own resources.

"The 500 kV line will not only pave the way for the socio-economic development of Ho Chi Minh City but also the rest of the country. It will also help attract foreign investment to the region," said Hiroshi Suzuki, chief representative of JBIC in Vietnam.

"I hope the contracts for supply of materials and sub-stations will be completed soon, and construction work carried out smoothly, so that the 500kV line will be in operation by mid-2004."

EVN general director Hung added that demand for power has been increasing sharply and EVN aims to construct more than 4000km of 500 kV transmission lines soon.