Viet Nam: Song Bung 4 Hydropower Project

Sovereign Project | 36352-013

Summary

The Project's objective is to contribute to meet Viet Nam's increasing power demand in an environmentally sustainable and socially inclusive manner.

The Project's scope is the construction of Song Bung 4 hydropower project in compliance with ADB's safeguard requirements and the restoration and improvement of livelihoods of Project affected people.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents

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Project Name Song Bung 4 Hydropower Project
Project Number 36352-013
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2429-VIE: Song Bung 4 Hydropower Project
Ordinary capital resources US$ 196.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Large hydropower generation
Gender Equity and Mainstreaming Some gender elements
Description

The Project's objective is to contribute to meet Viet Nam's increasing power demand in an environmentally sustainable and socially inclusive manner.

The Project's scope is the construction of Song Bung 4 hydropower project in compliance with ADB's safeguard requirements and the restoration and improvement of livelihoods of Project affected people.

Project Rationale and Linkage to Country/Regional Strategy

Viet Nam has maintained an average economic growth of 7.5% during the last 10 years and has reduced the incidence of poverty from 58% in 1993 to less than 25% in 2005. This has been achieved through rapid industrialization and urbanization, which has resulted in an increasing demand for electricity. Electricity demand has grown at an average rate of 15% per annum and is forecast to maintain the same growth rate until 2010 and then reduce to 12% by 2015.

The planned capacity addition for the period 2006-2015 is over 23,000 MW of which over 10,000 MW is already under construction. The total investment requirement in the power sector for the period 2006-2011 is expected to be about $23 billion, out of which Electricity of Vietnam (EVN) plans to make an investment of $14 billion, with non-EVN investments in the sector, including the private sector, expected to be $9 billion. Hence, financing from the Asian Development Bank (ADB) would bridge the financing gap of the sector and complement financing from other sources.

The Project is the first hydropower project in Viet Nam to receive financing from a multilateral financial institution and has been designed to effectively address environmental and social impacts in a sustainable and socially inclusive manner. The Project will also promote Integrated Water Resource Management (IWRM) in the river basin through policy dialogue and targeted technical assistance.

Impact Meeting Vietnam's increasing power demand in an environmentally sustainable and socially inclusive manner.
Project Outcome
Description of Outcome Increased power generation capacity in Quang Nam Province through sustainable use of hydropower, and mitigation of adverse environmental and social impacts.
Progress Toward Outcome

Commissioning test of Unit 1 completed/complied (Start 1 Sep 2014; End 30 Sep 2014)

Commissioning test of Unit 2 completed/complied with (Start 1 Oct 2014; End 31 Oct 2014)

Implementation Progress
Description of Project Outputs

Construction and commissioning of the 156 MW song Bung 4 Hydropower Project and associated facilities

Improvement of livelihoods of project-affected persons in a sustainable manner.

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

Construction and commissioning of Units 1 and 2 completed.

Programs being implemented continuously. No legitimate claims received.

Geographical Location Quang Nam Province, Central Viet Nam
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects

Change in hydrology downstream of the dam: The water flow in the river stretch between the dam and power station will be almost negligible and flows downstream of the power station will be significantly affected reflecting the operation regime of the power station. If the power station is operated as a peaking plant as expected, there will be significant fluctuations in the water level which could be as high as 1.5 m in the immediate vicinity of the power station. This fluctuation would diminish further downstream reducing to 0.2 m in the inhabited sections of the river.

Release of greenhouse gases from the reservoir: During the first 3-5 years of reservoir operation, the reservoir will be anaerobic and greenhouse gases such as methane and carbon dioxide will be released to the atmosphere through the turbines and reservoir surface. However, after a few years, the reservoir will become oligotrophic and the emissions will be reduced. Cumulative emissions are estimated to be much less than the emissions from a fossil fuel fired power plants of similar size.

Increased access to Song Thanh Nature Reserve (STNR): The reservoir will inundate about 143 ha of the STNR which is less than 0.2% of the area of the reserve. More importantly there will be increased access to the nature reserve through the reservoir and the realigned highway 14D. The capacity building for STNR authorities and the CBFM plan under the conservation off-set will contribute to preserving the biodiversity in the Project area, and specifically the STNR.

Impacts on Aquatic Ecology and Fauna: The altered hydrology in the Bung River will cause adverse impacts on the aquatic ecology of the river as the diurnal fluctuations in the water level and the dry sections of the river will affect the biological productivity of the river and reduce the fish populations. The migratory barrier of the SB4 dam, and later the SB5 dam downstream, if constructed, will adversely impact the migratory fish that use the river for spawning. It was not found that aquatic and faunal species are considered endangered, and impacts will have insignificant biodiversity implication. Strict enforcement against illegal hunting and fishing will be imposed under the EMP.

Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The planning approach followed to date has enabled full participation of the resettlers in the detailed resettlement planning process so that their concerns and needs are fully reflected in the REMDP. This approach has allowed flexibility and adaptability, particularly in the selection of resettlement sites, and design of the resettlement strategy and household livelihood activities, so that they are tailored towards the needs and situation of each individual household. Local level consultations have been targeted at the men and women affected by reservoir inundation, Project construction, and upstream and downstream impacts. Information on compensation, resettlement and livelihood options has been presented to all affected men and women by trained community and district facilitators through easily understandable visual materials together with verbal explanations in the Co Tu language, site visits of village men and women to proposed resettlement areas, and open discussions and feedback on proposals, concerns and preferences. All affected persons have been informed and consulted regarding the impacts, proposed mitigation and rehabilitation measures
During Project Implementation To ensure that the basic rights of Project-affected peoples are protected, concerns adequately addressed and entitlements delivered, a grievance procedure will be implemented. The first level of complaint will be the Village Resettlement Committee, followed by Commune and District Resettlement Grievance Committees. The Commune Grievance Committee will include the Commune Women's Union Chief and another woman representative of the Commune, who will be a Co Tu woman for Co Tu villages; the District Grievance Committee will include representation from the Justice Department, Women's Union, Ethnic Council, and Department of Agriculture.
Business Opportunities
Consulting Services

About 121 person-months of International consultants and about 1,189 person-months of national consultants will be required to assist in (i) review of bid documents and in bid evaluation; (ii) contract negotiation; (iii) construction supervision and management; and (iv) monitoring effectiveness of social and environmental measures of the Project. These consultants will be financed under the loan and will be recruited and engaged by EVN in accordance with ADB's Guidelines on the Use of Consultants. There will be two ADB-financed consulting service contracts as set out below.

(i) Construction supervision for the major civil works contracts including the support for implementing the EMP during construction. A recognized expert on concrete dams will be also provided under this consultancy package to ensure the quality of design and construction of the RCC dam. These services will be obtained through an international firm of consultants to be recruited using Quality Cost Based Selection (QCBS) and will require 121 person months of international consultants and 1,129 person months of national consultants.

(ii) A national monitoring agency will be engaged using Fixed Budget Selection to undertake the independent monitoring of the effectiveness of implementing environmental and social mitigation measures. This will require about 60 person months of national consultancy services.

Procurement Procurement of works, goods and services financed by ADB will be in accordance with ADB's Procurement Guidelines. The major civil works are divided into four packages (i.e. (i) dam & spillway (ii) Waterway and power station (iii) transmission line and (iv) realignment of highway 14 D ) to be procured using international competitive bidding (ICB) procedures. The first two packages will be subject to prequalification of contractors. The equipment component is divided into two packages (i.e. (i) Electromechanical equipment and (ii) Hydro mechanical equipment) and will be procured using ICB procedures. Small civil works contracts partly or wholly financed by ADB and costing up to and less than $2 million and goods costing less than $ 1 million will be procured using National Competitive Bidding (NCB) procedures acceptable to ADB and will be subject to selective post review. For certain equipment and goods, procurement by shopping for contracts estimated to cost less than $500,000 and direct purchase procedures for contracts estimated to cost less than $100,000 will be authorized.
Responsible ADB Officer Michiko Suga
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Viet Nam ElectricityTruong Thiet Hunghungtt@asb4.vn5th Floor, EVN-Land Central Bldg. 78A Duy Tan, Hai Chan District, Danang City
Timetable
Concept Clearance 05 Aug 2005
Fact Finding 31 Jul 2006 to 11 Aug 2006
MRM 14 Sep 2006
Approval 26 Jun 2008
Last Review Mission -
PDS Creation Date 27 Apr 2007
Last PDS Update 18 Mar 2015

Loan 2429-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2008 06 Oct 2008 16 Jan 2009 30 Jun 2014 31 Dec 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 267.30 Cumulative Contract Awards
ADB 196.00 26 Jun 2008 184.73 0.00 94%
Counterpart 71.30 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2008 171.86 0.00 88%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Song Bung 4 Hydropower Project: Environmental Monitoring Report (April 2015) Environmental Monitoring Reports Apr 2015
Song Bung 4 Hydropower Project: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Feb 2015
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 12 Social Monitoring Reports Jan 2015
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 11 Social Monitoring Reports Sep 2014
Song Bung 4 Hydropower Project: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 10 Social Monitoring Reports Jun 2014
Song Bung 4 Hydropower Project: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Jan 2014
Song Bung 4 Hydropower Project: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Sep 2013
Song Bung 4 Hydropower Project: Environmental Monitoring Report (August 2013) Environmental Monitoring Reports Aug 2013
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 9 Social Monitoring Reports Jul 2013
Song Bung 4 Hydropower Project: Social Monitoring Report (January 2013) Social Monitoring Reports Jan 2013
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 8 Social Monitoring Reports Jan 2013
Song Bung 4 Hydropower Project: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Jan 2013
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Parum B Village–Zuoih Commune Combined Resettlement Plan and Indigenous Peoples Plans Sep 2012
Song Bung 4 Hydropower Project: Social Monitoring Report (July 2012) Social Monitoring Reports Jul 2012
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 7 Social Monitoring Reports Jul 2012
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Parum A Village–Zuoih Commune, Nam Giang District, Quang Nam Province Combined Resettlement Plan and Indigenous Peoples Plans Feb 2012
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 6 Social Monitoring Reports Feb 2012
Song Bung 4 Hydropower Project: Environmental Monitoring Report (July-December 2011) Environmental Monitoring Reports Dec 2011
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Padhi-Zuoih Commune Combined Resettlement Plan and Indigenous Peoples Plans Nov 2011
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Land Acquisition for Zuoih Commune Administrative Office Center Combined Resettlement Plan and Indigenous Peoples Plans Oct 2011
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 5 Social Monitoring Reports Aug 2011
Song Bung 4 Hydropower Project: Environmental Monitoring Report (January-June 2011) Environmental Monitoring Reports Jun 2011
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Reservoir Inundated Village (Thon 2) Combined Resettlement Plan and Indigenous Peoples Plans Jun 2011
Song Bung 4 Hydropower Project: Volume 2 - Reservoir Resettlement and Development Plan: Addendum on DMS and Compensation Plan for Pa Dhi Access Road Combined Resettlement Plan and Indigenous Peoples Plans Mar 2011
Song Bung 4 Hydropower Project: Resettlement Due Diligence Report for Access Road to Pa Pang Resettlement Site Combined Resettlement Plan and Indigenous Peoples Plans Jan 2011
Song Bung 4 Hydropower Project: Resettlement Due Diligence Report for Access Road to Pa Rum A and Pa Rum B Resettlement Sites Combined Resettlement Plan and Indigenous Peoples Plans Jan 2011
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 4 Social Monitoring Reports Jan 2011
Song Bung 4 Hydropower Project: Volume 2: Reservoir Resettlement and Development Plan (Updated) Combined Resettlement Plan and Indigenous Peoples Plans Dec 2010
Song Bung 4 Hydropower Project: Volume 1: Cross Cutting Issues (September 2010) Combined Resettlement Plan and Indigenous Peoples Plans Sep 2010
Song Bung 4 Hydropower Project: Volume 1: Cross Cutting Issues (August 2010) Combined Resettlement Plan and Indigenous Peoples Plans Aug 2010
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 3 Social Monitoring Reports Jul 2010
Song Bung 4 Hydropower Project - Volume 3: Project (Construction) Lands Resettlement Plan Combined Resettlement Plan and Indigenous Peoples Plans Apr 2010
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 2 Social Monitoring Reports Jan 2010
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 1 Social Monitoring Reports Jul 2009
Song Bung 4 Hydropower Project Phase II: Environmental Impact Assessment Environmental Impact Assessments Jan 2007
Song Bung 4 Hydropower Project Phase II: Environmental Impact Assessment (tiếng Việt) Environmental Impact Assessments Jan 2007
Song Bung 4 Hydropower Project Phase II Summary Environmental Impact Assessments Aug 2006

Evaluation Documents

See also: Independent Evaluation

No documents found.


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