Viet Nam: Northern Power Transmission Expansion (Sector) Project

Sovereign Project | 38196-013

Summary

The project represents a 5-year time slice of Electricity of Viet Nam's (EVN) power transmission system development plan, covering 500 kilovolt (kV) and 220 kV transmission lines and associated substations. The project will transmit power from remote power plants to the northern part of Viet Nam, which is relatively poor. This enables adequate and reliable power supply required in the planned socio-economic development activities including new industrial parks. The Project will also create the potential for regional power interconnection.

Latest Project Documents

Consulting Notices

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Procurement Notices

See also: Operational Procurement

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Procurement Documents


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Project Name Northern Power Transmission Expansion (Sector) Project
Project Number 38196-013
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2225-VIE: Northern Power Transmission Expansion (Sector) Project
Ordinary capital resources US$ 360.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements
Description The project represents a 5-year time slice of Electricity of Viet Nam's (EVN) power transmission system development plan, covering 500 kilovolt (kV) and 220 kV transmission lines and associated substations. The project will transmit power from remote power plants to the northern part of Viet Nam, which is relatively poor. This enables adequate and reliable power supply required in the planned socio-economic development activities including new industrial parks. The Project will also create the potential for regional power interconnection.
Project Rationale and Linkage to Country/Regional Strategy Economic growth has been averaging about 7% per year from 1995 to 2005. This, in turn, has fueled growth in demand for electricity by about 15% per year. This rapid economic expansion has helped Viet Nam reduce the share of the population living in poverty from 58% in 1993 to 25% in 2005. The Government' aimed to sustain the economic growth to reduce poverty incidence. Due to the strong economic growth, Viet Nam's electricity supply deficit increased, especially during the dry season, due to its heavy dependence on hydropower. To meet the load growth, the government started expanding the generation capacity. To transmit the generated power to the load centers, it is reuiqred to develop the transmission networks. During the project design, EVN envisages an investment requirement of $17.5 billion up to 2010, which will not materialize without long-term finance. While local financing were available, the terms were comparatively short. Hence the government approached Asian Development Bank (ADB). ADB apporved the loan, in view of a robust and reliable transmission network with an enabling environment will attract increased private sector participation in generation, transmission, and distribution. Policy dialogue on safeguard issues, and ADB's involvement in reviewing and providing comments to refine EVN's environmental and social policy and procedures, will contribute to EVN's adoption of best practices in safeguard policies and implementation of safeguard measures. Through its loan covenants, it is expected that the proposed project will further the ongoing power sector reforms to restructure EVN and create a viable electricity supply industry in Viet Nam, as well as to improve confidence of private sector investors in the nascent regulatory framework.
Impact The livelihood of people in northern Viet Nam has been improved in a sustainable manner.
Project Outcome
Description of Outcome Households and the industries in northern Viet Nam have access to reliable supply of electricity
Progress Toward Outcome

As of 31 December 2014, 11 out of 12 subprojects financed under the Project were completed and in operation. Thuong Tin-Kim Dong Transmission Line is not yet completed due to remaining conductor stringing works in four towers due to a compensation issue. The issue is being resolved and executing agencies expect to energise the transmission line by May 2015.

Households and the industries in Northern Viet Nam now have access to reliable electricity supply which will be assessed and confirmed during PCR mission within 2015.

Implementation Progress
Description of Project Outputs

500 kV and 220 kV transmission networks expanded.

The power system in the northern Viet Nam is environmentally and socially acceptable.

One new substation is fully functional

Two existing substations are upgraded.

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

Loan closing was 31 December 2014 and financial closing will be on 31 April 2015.

All project outputs acheived. Two (2) 500 kV transmission lines, one (1) 220 kV transmission line, one (1) new 500 kV substation, four (4) new 220 kV substations built and energised. One (1) 500 kV substation and two (2) 220 kV substations extended and energised. One of the transmission lines has been almost completed and energising is expected in May 2015.

Geographical Location Northern Vietnam
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects IEE documents for all the sub projects being implemented that have environmental impacts have been completed and disclosed. Monitoring in progress and periodic monitoring reports are being received by ADB and noted satisfactory implementation of the mitigation plans. Semiannual environmental monitoring reports have been disclosed in ADB website.
Involuntary Resettlement ADB noted issues in implementation of resettlement plans of the subprojects and requested executing agencies to rectify. Most of the resettlement issues identified during loan review missions, and local implementation consultants have been satisfactorily addressed and resolved, among which: (i) Remaining payment for affected assets (trees, crops) have been completed in all districts; (ii) Allowance for renting houses due to delay in completion of resettlement sites have been extended until the completion of the resettlement in all districts; (iii) Allocation of plots in resettlement sites have been mainly completed; and (iv) All 22 resettlement sites were completed with full infrastructure. There is an ongoing compensation issue in one of the project sites which is being addressed, and it is expected all pending issues be resolved by Q2, 2015.
Indigenous Peoples Communes in two provinces, Phu Tho and Son La are affected due to land acquisition. The proportion of ethnic minority households is around 60% in Phu Tho province and 100% in Son La province. The ethnic minority groups include the Muong and Thai, H'mong, Dao, Kho Mu, and Sinh Mun. Resettlement Plans were prepared for all subprojects and for some of the subprojects additional due diligence reports were prepared. Each plan contains activities for compensation and lively hood programs. All activities have been successfully completed and monitoring reports were uploaded in ADB website.
Stakeholder Communication, Participation, and Consultation
During Project Design

Executing Agencies conducted stakeholder consultations with: members of Son La Hydropower Project Management Board; Huoi Quang Project Management Board; government officials from the provincial, district, and commune people's committees of all project affected areas; representatives from the provincial and district resettlement committees; political party cells; National Institute of Agricultural Production and Projection; and Ministry of Agriculture and Rural Development.

In addition, field visits, observations, interviews, and discussions with commune and village officials, affected households, and host communities at the resettlement sites and proposed resettlement sites were carried out. Semi-structured questionnaires also were utilized in gathering information.

During Project Implementation Stakeholder Communication, Participation and Consultation continued during project implementation. Resettlement plans, initial environmental impact assessments, due diligence reports which include the stakeholder communication, participation and consultation activities which have been disclosed in the ADB website. Semiannual monitoring reports by local implementation consultants reviewed by divisional safeguards specialists have been disclosed. Loan review missions closely monitored the actions by the executing agencies to ensure all stakeholders have been involved in the process.
Business Opportunities
Consulting Services

2. Consulting Services

2. EVN has engaged and financed about 300 person-months of domestic consultants for (i) detailed technical design; (ii) bid preparation and procurement; (iii) construction supervision; (iv) implementing the environment management plans; (v) preparing and implementing the resentment plans; and (vii) socioeconomic impact assessment, and project performance monitoring.

3. During project design it was agreed that ADB loan will finance two international consultants for a total of 10 person-months and 14 person-months of national consultants. The international consultants to (i) prepare subproject resettlement plans; (ii) guide and supervise resettlement committees; (iii) train staff of project management boards (NPPMB, CPPMB), and resettlement committees; and (iv) assist NPPMB in the preparation of initial environment impact assessments and environmental management. The domestic consultants to (i) periodically monitor compliance with the approved resettlement plans by meeting with project-affected people, resettlement committees, project management boards, and other stakeholders, including independent domestic resettlement monitoring consultants; (ii) monitor compliance with approved environment plans for the subprojects; and (iii) implement the gender strategy. However executing agencies did not recruit any international consultants and only national consultants with 22 person-months input.

Procurement

1. Procurement

1. Executing agencies were advised that equipment and materials to be financed under the loan to be procured in accordance with ADB's Guidelines for Procurement. International competitive bidding (ICB) was used for supply contracts estimated at more than $1 million. International shopping was also used for contracts below $1 million. Civil works were procured through national competitive bidding for contract values of up to $3 million and ICB was used for contract values more than $3 million.

Responsible ADB Officer Aruna Kumuduni Wanniachchi
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Viet Nam ElectricityPhan Luong Thiennone1111D Hong Ha Street, Hanoi, Viet Nam
Timetable
Concept Clearance 07 Mar 2004
Fact Finding 03 Jul 2005 to 23 Jul 2005
MRM 12 Aug 2005
Approval 21 Dec 2005
Last Review Mission -
PDS Creation Date 27 Feb 2006
Last PDS Update 20 Mar 2015

Loan 2225-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Dec 2005 22 Aug 2006 24 Nov 2006 31 Dec 2010 31 Dec 2014 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 452.70 Cumulative Contract Awards
ADB 360.00 21 Dec 2005 340.89 0.00 95%
Counterpart 92.70 Cumulative Disbursements
Cofinancing 0.00 21 Dec 2005 351.72 0.00 99%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Satisfactory Satisfactory - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Northern Power Transmission Expansion Sector Project: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Nov 2014
Northern Power Transmission Expansion Sector Project: 220 kV Tuyen Quang Substation Due Diligence Report and Corrective Action Plan Safeguards Due Diligence Reports Mar 2014
Northern Power Transmission Expansion Sector Project: 220 kV Bim Son Substation Due Diligence Report and Corrective Action Plan Safeguards Due Diligence Reports Mar 2014
Northern Power Transmission Expansion Sector Project: First Quarterly Social Monitoring Report (2014) Social Monitoring Reports Mar 2014
Northern Power Transmission Expansion Sector Project: First Quarterly Resettlement Monitoring Report (2014) Social Monitoring Reports Mar 2014
Northern Power Transmission Expansion Sector Project: Semiannual Environmental Monitoring Report (July - December 2013) Environmental Monitoring Reports Dec 2013
Northern Power Transmission Expansion Sector Project: 500 KV Hiep Hoa Substation Safeguards Due Diligence Reports Dec 2013
Northern Power Transmission Expansion Sector Project: Son La - Hiep Hoa 500 KV Transmission Line Due Diligence Report and Corrective Action Plan Safeguards Due Diligence Reports Sep 2013
Northern Power Transmission Expansion (Sector) Project: Resettlement Plan for Hai Duong 2 Substation Resettlement Plans Aug 2013
Northern Power Transmission Expansion (Sector) Project: Resettlement Plan for Thuong Tin District Resettlement Plans Jul 2013
Northern Power Transmission Expansion (Sector) Project: Resettlement Plan for Kim Dong 220KV Substation Resettlement Plans Jul 2013
Northern Power Transmission Expansion Sector Project: First Semiannual Resettlement Monitoring Report Social Monitoring Reports Jul 2013
Northern Power Transmission Expansion (Sector) Project: Resettlement Plan for the Khoai Chau District Resettlement Plans Jul 2013
Northern Power Transmission Expansion (Sector) Project: Resettlement Plan for Kim Dong District Resettlement Plans Jul 2013
Northern Power Transmission Expansion Sector Project: Semiannual Resettlement Monitoring Report (January-June 2013) Social Monitoring Reports Jun 2013
Northern Power Transmission Expansion Sector Project: Semiannual Environmental Monitoring Report (July - December 2012) Environmental Monitoring Reports Mar 2013
Northern Power Transmission Expansion Sector Project: Nghi Loc District Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Trieu Son Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Nong Cong Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Vinh City Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Quynh Luu Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Yen Thanh District Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Thieu Hoa Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Dong Son District Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Dien Chau District Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Tinh Gia Resettlement Plans Sep 2012
Northern Power Transmission Expansion Sector Project: Semiannual Environmental Monitoring Report (January - June 2012) Environmental Monitoring Reports Jun 2012
Northern Power Transmission Expansion Sector Project - Subproject 8: 220 kV Thuong Tin-Kim Dong Transmission Line Initial Environmental Examination Jun 2012
Northern Power Transmission Expansion Sector Project - Subproject 9: 220 kV Hai Duong 2 Substation Initial Environmental Examination Jun 2012
Northern Power Transmission Expansion Sector Project - Subproject 7: 220 kV Kim Dong Substation Initial Environmental Examination Jun 2012
Northern Power Transmission Expansion Sector Project - Subproject 6: 220kV Tuyen Quang Substation Initial Environmental Examination Jan 2011
Northern Power Transmission Expansion Sector Project - Subproject 5: Initial Environmental Examination for 220 kV Bim Son Substation Initial Environmental Examination Jan 2011
Northern Power Transmission Expansion Sector Project: Resettlement Plan for Tan Lac District, Hoa Binh Province Resettlement Plans Sep 2009
Northern Power Transmission Expansion Sector Project: Resettlement Plan for Lac Son District, Hoa Binh Province Resettlement Plans Sep 2009
Northern Power Transmission Expansion Sector Project: Resettlement Plan for Yen Thuy District, Hoa Binh Province Resettlement Plans Sep 2009
Northern Power Transmission Expansion Sector Project: Resettlement Plan for Yen Chau District, Son La Province Resettlement Plans Sep 2009
Northern Power Transmission Expansion Sector Project: Resettlement Plan for Mai Son District, Son La Province Resettlement Plans Jul 2009
Northern Power Transmission Expansion Sector Project: Resettlement Plan for Muong La District, Son La Province Resettlement Plans Jul 2009
Northern Power Transmission Expansion Sector Project: Resettlement Plan for Moc Chau District, Son La Province Resettlement Plans Jul 2009
Northern Power Transmission Expansion Sector Project: Updated Resettlement Plan for Mai Chau District, Hoa Binh Province Resettlement Plans Jul 2009
Northern Power Transmission Expansion Sector Project: Resettlement Plan for Nho Quan District, Ninh Binh Province Resettlement Plans Mar 2009
Northern Power Transmission Expansion Sector Project: Son La - Hiep Hoa 500kV Transmission Line Environmental Impact Assessments Feb 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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