The total project cost is US$800 million. The World Bank contributes US$449 million and US$30 million comes from the Clean Investment Fund (CTF) to support the implementation of smart grid technologies. The Australian Agency for International Development (AusAID) provides US$8 million in grants for technical assistance and capacity building. The remaining investment of US$313 million will come from the Government of Vietnam in counterpart funds. The project will contribute to meeting the objectives of the National Energy Development Strategy to 2020 by reducing investment needs in the power sector, strengthening energy security and contribute to climate change mitigation. The project covers the construction and reinforcement of electricity distribution networks, the introduction of smart grid technologies in distribution and a technical assistance and capacity building facility for the Electricity Regulatory Authority of Vietnam (ERAV) and the five power companies (Northern Power Corporation, Central Power Corporation, Southern Power Corporation, Ho Chi Minh City Power Corporation and Hanoi Power Corporation) to develop efficient electricity tariffs and design effective energy demand programmes.