Viet Nam: Northern Power Transmission (Sector) Project

Sovereign Project | 32273-013

Latest Project Documents

Project Results



kilometers of transmission lines installed or upgraded

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Project Name Northern Power Transmission (Sector) Project
Project Number 32273-013
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2128-VIE: Northern Power Transmission (Sector) Project
Ordinary capital resources US$ 120.00 million
Loan: Northern Power Transmission (Sector) Project
Agence Francaise de Developpement US$ 50.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The objectives of the Project are to (i) expand and strengthen EVN's transmission system in the north to improve system reliability and quality; and (ii) improve the efficiency of the power sector by supporting restructuring and commercialization of EVN. The Project will support the power sector reform efforts by ensuring that EVN's generation units are corporatized and its four transmission units are merged into one prior to the establishment of a 'single-buyer' model of operation for EVN in 2007.
Project Rationale and Linkage to Country/Regional Strategy

According to the revised Fifth Master Plan Adjustment File (MP5 AF) the total investment requirement of the power sector for the period 2002?2010 is estimated to be $19.1 billion, consisting of $11.8 billion for generation and $7.3 billion for transmission and distribution.

Given the huge investment needs of the sector, it is envisaged that the non-Electricity of Vietnam (EVN) investments in the sector, including those from the private sector, will amount to $3.0 billion and that these investments will be mainly in the generation sector. The investments to be mobilized by EVN would be $16.1 billion and the internal cash generation of EVN would contribute to more than half (i.e., $8.9 billion) with modest tariff increases. The financing gap of $7.2 billion is expected to be filled through borrowings. The official development assistance (ODA) flows to the sector are expected to be $3 billion?3.5 billion and the balance would be sourced from commercial borrowings. The domestic banks and export credit agencies are financing several power generation projects and this trend is expected to continue in the future as EVN?s credit worthiness improves.

Recognizing its fiscal constraints in meeting all the investment demands, the Government requested assistance from ADB to upgrade its power transmission network in the northern part of the country. The Government?s request was included in the 1999 CSP and a project preparatory technical assistance (PPTA) was approved in 2002. Due diligence has been conducted and the Loan was approved and being implemented

Impact Stimulated economic growth in the northern part of Viet Nam and contributed to the reduction of poverty in the north
Project Outcome
Description of Outcome Expanded and strengthened the electricity network in the northern part of Viet Nam, and improved the efficiency of the power sector
Progress Toward Outcome

The loan was approved on 13 Dec 2004 and now extended to 31 Dec 2012

Major outputs have also been achieved: (i) Quang Ninh Thuong Tin 500 kV, Tuyen Quang Yen Bai 220 kV, Vinh Ban La 220 kV transmission lines have been constructed and energized in December 2009 and March 2010 respectively; (ii) Quang Ninh and Thuong Tin 500 kV substations have also been commissioned in December 2009; and (iii) upgrading and creation of ten 220 kV substations are almost completed as to date.

Implementation Progress
Description of Project Outputs

Expanded and upgraded 500 kV and 220 kV transmission systems

Expanded and upgraded supervisory control and data acquisition (SCADA) and telecommunications system

Status of Implementation Progress (Outputs, Activities, and Issues)

The Loan 2128-VIE consists of equipment supply and installation to two components: (1) transmission lines and substations and (2) upgrading of the Supervisory Control and Data Acquisition (SCADA) system being implemented by the Northern Power Project Management Board (NPPMB) and the National Load Dispatching Center (NLDC) respectively. ADB provided $120 million to both components and AFD co-financed 40 million (Euros) to component 1. The ADB loan was approved on 13 December 2004, with the loan and project agreements signed on 25 August 2005, and declared effective on 16 December 2005. Loan closing date for ADB loan is 31 December 2011 (original was 31 December 2009), and AFD loan is 31 July 2010

Five (05) transmission line subprojects under ADB financing have been completed or almost completed except construction of Hai Phong Dinh Vu 220 kV T/L is on-going at the remaining 0.55 km of underground cable. Commissioning of some substations continues delaying from few months to 1 year. In general, construction and equipment installation of these substations are almost completed as to date

For Van Tri Soc Son 220 kV transmission line, all equipment supply contracts have been disbursed while construction of the line is being severely delayed due to uncertainty of route selection. This issue arose since last year and noted/discussed in the Loan review mission in October 2009. Some actions have been taken by both NPT/NPPMB and Hanoi's People Committee (HPC) but the issue remained unsolved until now. The Mission requested EVN/NPT to organize tripartite meeting with the presents of ADB/AFD, MOIT/EVN/NPT/NPPMB, and HPC and its relevant departments to settle out this issue at soonest time.

SCADA component 2 of Loan 2128-VIE is on-going on track in spite of a little concern in progress of Phase 2 of the component. There would be slight possibility of delay in commissioning of Phase 2 beyond Project Closing Date i.e. 31 December 2011. The Mission requested EVN/NLDC to speed up bidding process of Phase 2 and to accelerate implementation of Phase 1 so that both phases can be completed in time

Geographical Location Northern Vietnam
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects NPPMB has not submitted final reports for subprojects detailing the status of implementation of EMP provisions by the contractor as committed during the Review Mission in January 2010. The Mission again requested NPT/NPPMB to submit these reports as it is required in compliance with loan covenants. Since NPPMB does not have staff that has capacity in doing/monitoring environmental work, it committed to recruit an environmental consultant to assist NPPMB in implementing environmental-related works including above activities.
Involuntary Resettlement Two remaining issues have not been able to resolved so far which are (i) compensation some affected household (HH) located along Van Tri Soc Son transmission line, and (ii) reallocation of 7 HH affected by Hai Phong Vat Cach transmission line (refer to paras 32 & 33 in the attached MOU for further details). The Mission requested EVN/NPT/NPMB to pay highest efforts in order to settle out these issues. ADB's resettlement team will closely follow up with NPPMB, and provide guidance, if necessary.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services International resettlement consultants and an independent local resettlement monitoring consultant will be required to assist NPPMB. Consultants will be recruited by EVN/NPPMB in accordance with ADB's Guideline on the Use of Consultants. The Government requested advance action for recruitment of consultants to minimize front-end delays in project implementation. ADB approved early recruitment action and informed the Government that this action would not in any way commit ADB to finance the consultants.
Procurement Procurement of goods and services for the Project will be carried out in accordance with the ADB Guidelines for Procurement. Supply of materials will be on the basis of international competitive bidding (ICB) or international shopping (IS). Civil works will be carried out using NPPMB's own labor force and using local contractors through competitive bidding. The material required for the Project will be grouped into packages suitable for ICB and IS procurement.
Responsible ADB Officer Au Minh Tuan
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Viet Nam Electricity
Phan Luong Thien
1111 D Hong Ha str. Hanoi Vietnam
Concept Clearance 08 Mar 1999
Fact Finding 04 May 2004 to 07 May 2004
MRM 03 Jun 2004
Approval 13 Dec 2004
Last Review Mission -
PDS Creation Date 29 Nov 2006
Last PDS Update 15 Dec 2011

Loan 2128-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2004 25 Aug 2005 16 Dec 2005 31 Dec 2009 31 Dec 2011 10 May 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 273.60 Cumulative Contract Awards
ADB 120.00 13 Dec 2004 97.13 0.00 92%
Counterpart 103.60 Cumulative Disbursements
Cofinancing 50.00 13 Dec 2004 105.68 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory
Title Document Type Document Date
Northern Power Transmission Sector Project Project/Program Completion Reports Oct 2012
Northern Power Transmission Sector Project Project/Program Administration Manual Dec 2005
Northern Power Transmission Sector Project Reports and Recommendations of the President Nov 2004

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Northern Power Transmission Expansion Sector Project Initial Environmental Examination Aug 2005
Northern Power Transmission Sector Project Initial Environmental Examination Dec 2004

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Viet Nam: Northern Power Transmission Sector Project Validations of Project Completion Reports Aug 2014

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