European Commission Director-General of International Cooperation and Development Stefano Manservisi speaks at the ceremony. (Photo: EU Delegation in Vietnam)

It is part of the implementation of the EU Energy Sector Policy Support Program. It costs 108 million euros.

The program aims to improve access to sustainable energy in rural areas and create to a more sustainable energy sector by promoting efficient, clean, renewable energy for all citizens.

The EU-Vietnam Energy Facility, co-financed by the EU and the German Federal Ministry for Economic Cooperation and Development will be operated by the German Society for International Cooperation (GIZ) in close cooperation with the Ministry of Industry and Trade.

At the launch in Hanoi on Tuesday, EC Director-General of International Cooperation and Development Stefano Manservisi said the program will not only help the Vietnamese government achieve its 2020 objective of delivering reliable and sustainable electricity access to 1. 2 million households in rural areas, it will also improve governance of the energy sector to facilitate the shift to a more sustainable energy development path in Vietnam.

The EU is providing non-refundable aid worth 346 million euros to Vietnam’s energy sector until 2020.