Viet Nam: VIE: PHU MY 3 POWER

Nonsovereign Project | 36901-014

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Project Name VIE: PHU MY 3 POWER
Project Number 36901-014
Borrower/Company PHU MY 3 BOT POWER COMPANY LIMITED
Country Viet Nam
Location Ba Ria-Vung Tau Province
Approval Number 7178/1923
Type or Modality of Assistance
7178/1923 Political Risk Guarantee without Govt Guarantee US$ 35.00 million Approved
Strategic Agendas
Drivers of Change
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Regina V. Caluag
Project Sponsor(s) SembCorp
BP HOLDINGS B.V.
Kyushu/Sojitz (formerly Nissho Iwai)
Description The Project is a 716.8 MW gas-fired combined-cycle power plant on a build-operate-transfer (BOT) basis at the Phu My Power Generation Complex in Ba Ria-Vung Tau Province. Electricity generated from the Project is sold to Electricity of Vietnam (EVN) on a take-or-pay basis for 20 years under a power purchase agreement. PetroVietnam Gas Corporation (PVGas) supplies the Project with natural gas from the Nam Con Son Gas Basin for 20 years under a gas supply agreement. The plant will be transferred to the Government of Vietnam at the end of the BOT period. The Project is a high-priority undertaking for the Government as an integral part of the country's least-cost power generation expansion program and also the Integrated Gas-Power-Urea Project in Ba Ria-Vung Tau, a national key project. The Government has guaranteed the availability, convertibility, and transferability of foreign exchange and the performance obligations of the Vietnamese counterparties under the project agreements. The Project is operated by Phu My 3 BOT Power Company Limited (the BOT Company), which is jointly held by BP Holdings B.V., SembCorp Utilities Pte. Ltd., and the consortium of Kyuden International Corporation and Nissho Iwai Corporation.
Objectives and Scope The Project helps: (i) ease Viet Nam's projected power supply shortfalls in a least-cost manner and reduce the power system's dependency on hydropower; (ii) expand consumer access to competitively-priced and reliable power supply within a relatively short time; (iii) improve the sector's governance by promoting good commercial practices in power plant operations and management; and (iv) develop and commercialize indigenous natural gas.
Linkage to Country/Regional Strategy The Project is consistent with ADB's energy sector strategy as well as ADB's Vietnam country strategy and program that advocate private sector participation in infrastructure development and use of environmentally friendly technology.
Status of Development Objectives The Project has succeeded in meeting its primary development objectives. Phu My 3 is the first of two large-scale BOT gas-fired power plants which contributes to more reliable base load and more diversification of energy sources in Viet Nam. It serves as a successful model for the development of an integrated gas for power project. The Project involves the transfer of technology and best practices in power plant operation, as well as in environment, health and safety management. Following the successful implementation of Phu My 2.2 and Phu My 3, Viet Nam is developing other power plant complexes with foreign private sector participation replicating the Phu My model.
Safeguard Categories
Environment A
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects The power plant employs modern combined-cycle technology with high thermal efficiency. With natural gas as the primary fuel, nitrogen oxides comprise the only stack emissions of significant interest and are measured continuously. The emissions of nitrogen oxide and sulfur dioxides, aqueous discharges, and noise comply with Vietnamese standards and World Bank guidelines. Environmental mitigation measures as indicated in the summary environmental impact assessment have been implemented. Phu My 3 has also developed a procedure to assess health and safety risks in workplace conditions and activities to ensure all control measures are in place. In terms of social impact, Phu My 3 has contributed to enhancing the electrification rate in Viet Nam, created jobs, and engaged in various community support programs.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 22 Feb 2002
Due Diligence 09 May 2002
Credit Committee Meeting 19 Jul 2002
Approval 18 Oct 2002
PDS Creation Date 21 Aug 2006
Last PDS Update 01 Oct 2014
Title Document Type Document Date
Loan and Political Risk Guarantee to the Phu My 3 Power Project Project/Program Completion Reports Feb 2007

Safeguard Documents

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Title Document Type Document Date
Phu My 3 Power Project Summary Environmental Impact Assessments May 2002

Evaluation Documents

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