Second Rural Energy Project

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The Second Rural Energy Project for Vietnam aims to improve access to good quality, affordable electricity services to rural communities, in an efficient and sustainable manner to support Vietnam's efforts towards socio-economic development. The project includes the following five components: 1) Major upgrading and/or expansion of the Low Voltage (LV) system in the rural power network in 1,200 communes. 2) This component will rehabilitate the Medium Voltage (MV) systems in the same project communes where the LV systems are rehabilitated and expanded under project component 1). 3) This component will rehabilitate the MV systems in the same project communes where the LV systems are rehabilitated and expanded in the project component 1). 4) This project component will rehabilitate the MV system in the same project commune where the LV systems are rehabilitated and expanded in project component 1). 5) This component will support: (i) the development and implementation of a framework for regulation of companies and cooperatives and building the capacity of national and provincial authorities in planning and regulation of rural electrification; (ii) transformation of the Local Distribution Utility (LDUs) into legal entities; (iii) strengthening the abilities of the LDUs in commercial, technical and financial management of electricity distribution companies; and (iv) replication of the best practices developed in other LDUs participating in the later phases of the project and subsequently.