The Electricity of Vietnam – Hanoi branch (EVN Hanoi) on December 24 kicked off construction on the Gia Lam 2 110kV line and transformer station as part of the World Bank (WB)’s Distribution Efficiency Project (DEP).

The VND99.9 billion project, the first of its kind funded by the WB, is a key work in Hanoi’s power plan in the 2011-2015 period with a vision towards 2020 approved by the Ministry of Industry and Trade in August 2011.

Speaking at the ceremony, EVN Hanoi General Director Tran Duc Hung said that the station, built on an area of 3,100 sq.m in Phu Thi and Dang Xa communes, includes two 110kV transformers with a capacity of 63 MVA each.

The first transformer is expected to become operational in October 2013, improving power supply quality for Gia Lam district and surrounding areas. The second one will be installed in 2016.

Franz Genrer, WB Country Coordinator on Energy said the project aims to improve Hanoi ’s power supply and suggested the city well address land revoking and resettlement work.

The DEP, which has a total investment of US$724.8 million, is the largest power grid project funded by the WB so far. It is implemented by the EVN in the southern, central and northern regions, Hanoi and Ho Chi Minh City, benefiting 40 provinces and cities nationwide.