The Unification Ministry says building additional power plants is unnecessary for the government's proposed electricity aid to North Korea.

In a report to the National Assembly Friday, the ministry also said that with Pyongyang's cooperation, the construction of power transmission lines will take no more than three years, and that South Korea will secure adequate energy reserves by September 2008.

Facility investment costs for the aid is estimated between 1.55 trillion and 1.72 trillion won while power generation will cost an annual 650 billion to 800 billion won.

Seoul will take sole charge of the project unlike the light reactor project led by an international consortium.

On rice aid to Pyongyang, South and North Korean banks will sign a loan contract Saturday, with the first shipment to go by land Tuesday and the second by sea on July 30th.

The ministry also pledged to secure transparency in distributing the aid through field inspections at 20 locations in the North.