OREANDA-NEWS. July 10, 2012. General Electric (NYSE: GE) signed today an equipment supply contract worth USD16.5 million with the Power Transmission Company No. 4 (PTC4), a subsidiary of the National Power Transmission Corporation (NPT), to double Vietnam’s existing power capacity through upgrading of the country’s national backbone transmission system.

GE’s series capacitor banks will be installed as part of the upgrade of the 500-kV Pleiku–Phu Lam transmission line to increase power capacity from 1,000 amps to 2,000 amps.

U.S. Secretary of State Hillary Rodham Clinton witnessed the signing of the contract in Hanoi.

“The 500-kV Pleiku-Phu Lam transmission line, which is 500 km in length, is the backbone of Vietnam’s North-to-South power transmission. Increasing the capacity of the line to transmit power across the country more efficiently will enable EVN to mobilize generation sources to more effectively meet power demand, which varies from region to region. When it comes into operation in 2013, the project is expected to supply approximately 800 megawatts to the Southern area,” said Dang Phan Tuong, chairman of the Board of Management of NPT.

GE Energy Asia Pacific President Kenji Uenishi said, “We are delighted with this opportunity to assist Vietnam meet its power needs. A healthy power infrastructure is vital to supporting economic growth. GE’s advanced equipment, services and partnership with local corporations will enable Vietnam to manage power needs more efficiently in line with efforts to enhance current infrastructure.”

Under the terms of the contract, GE will supply six series capacitor banks to NPT and provide on-site supervision for installation testing and commissioning. The project utilizes GE’s latest fuseless technology to enable a 100 percent increase in the current capacity of the existing transmission line and installed infrastructure.

GE will partner for the first time with a local corporation, 3C Company, to provide local content for the project.

Stuart Dean, GE CEO for ASEAN, said, “GE has been in ASEAN from its beginning helping countries meet their energy and power needs to accelerate development plans and competitiveness in the industrial and manufacturing sectors. We believe in making the world better and one of the ways we do this is to build world-class infrastructure.”

GE's capacitor technology is proven technology in Vietnam with the first GE banks installed in the 1990s. This is the second time GE has signed a contract directly with NPT. The first involved a similar capacitor banks installation in the 500-kV Da nang - Ha Tinh transmission line.

The U.S. Export-Import Bank is financing the project. Shipping and installation of the capacitors at the three locations will begin in the second quarter of 2013, with commercial operation set to begin in the third quarter of the year.

GE signed a memorandum of understanding in March 2011 with NPT for both companies to work together in an effort to increase Vietnam’s power transmission efficiency and expertise, while reducing the risk of power shortages.