Viet Nam: Multitranche Financing Facility Mong Duong 1Thermal Power Project

Sovereign Project | 39595-013

Summary

The Project will (i) provide adequate and reliable power supply to meet part of Viet Nam's rapidly growing electricity demand in an environmentally sustainable manner; (ii) contribute towards increasing the share of thermal power generation capacity in Viet Nam, thereby correcting the current dry season imbalance of hydropower plants; and (iii) by the inclusion of common facilities to be shared by each of Mong Duong 1 and 2 thermal power projects, it facilitates the construction of Mong Duong 2 by a private sector developer under a build, operate and transfer arrangement. The project will provide for appropriate capacity building in number of areas, and incorporate all necessary environment and social safeguards.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Multitranche Financing Facility Mong Duong 1Thermal Power Project
Project Number 39595-013
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0013-VIE: Multitranche Financing Facility Mong Duong 1Thermal Power Project
Ordinary capital resources US$ 930.71 million
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming No gender elements
Description The Project will (i) provide adequate and reliable power supply to meet part of Viet Nam's rapidly growing electricity demand in an environmentally sustainable manner; (ii) contribute towards increasing the share of thermal power generation capacity in Viet Nam, thereby correcting the current dry season imbalance of hydropower plants; and (iii) by the inclusion of common facilities to be shared by each of Mong Duong 1 and 2 thermal power projects, it facilitates the construction of Mong Duong 2 by a private sector developer under a build, operate and transfer arrangement. The project will provide for appropriate capacity building in number of areas, and incorporate all necessary environment and social safeguards.
Project Rationale and Linkage to Country/Regional Strategy

The high level of growth rate in electricity demand, coupled with the country's present disproportionately high dependency on hydropower has resulted in Viet Nam experiencing dangerously low reserves during annual dry seasons when limited river flows reduce hydropower output to about 40-50% of their rated output.

Without significant increments in thermal plant capacity, the continuing demand for electricity would reduce system reserve capacity to zero by 2010. Electricity of Viet Nam (EVN) therefore plans to urgently develop a number of coal power plants including Mong Duong 1 thermal power project to address system imbalances and seasonal generation shortages. The Government has taken an important policy decision to predominately use domestic coal resources to ensure security of electricity supply, and its 6th Power Development Master Plan provides for coal power plants to provide for key base-load power generation. Coal's share in the total generation mix will more than double from 16% (in 2006) to 34% in 2020, while the share of hydropower will fall gradually from 37% in 2006 to 27% in 2020 but nevertheless will remain second largest component in the country's generation capacity mix.

Impact Adequate and reliable supply of power to meet Viet Nam's electricity demand in an environmentally sustainable manner.
Project Outcome
Description of Outcome Adequate system generating capacity to meet growing electricity demand in Northern Viet Nam
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Tranche 1: Site for the construction of the MD1 and MD 2 power plants

Tranche 2: MD 1 1,000 MW CFB technology coal-fired power plant

Common facilities for MD2

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consulting services will be required for (i) reviewing technical designs; (ii) preparation of bid document for the engineering, procurement and construction (EPC) contract; (iii) supervision of site preparation; (iv) monitoring implementation of the resettlement plan; (v) implementation of the environmental management plan; (vi) socioeconomic impact assessment of the health situation; (vii) project performance monitoring; and (viii) supervision of the EPC contractor. The consultants will be selected and engaged by EVN in accordance with ADB's Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers. Services will be provided through consulting firms following international competition using the quality-and cost-based selection (QCBS) method. Individual experts may be recruited based on bio data submitted in response to specific terms of reference for the assignment. Two recruitments of consulting services will be undertaken for the Project. The first recruitment of consultants will be to assist in the preparation of bid documents for selection of the EPC contractor, negotiations and award of EPC contract; preparation of civil works bid documents, bidding, award of contract and supervision of civil works; assist in the implementation of resettlement plans; and implementation and supervision of environmental management plans. This recruitment will undertake during the implementation of the first loan. The second recruitment of consultants will be to assist EVN in the overall management of the Project, supervision of the EPC contract and civil works contracts. This recruitment will be undertaken prior to approval of the second loan. The total consulting inputs will be 820 person months comprising 556 person months of international consultancy services and 264 person months of national consultancy services.
Procurement Equipment and materials to be financed under the MFF will be procured in accordance with ADB's Procurement Guidelines. International competitive bidding (ICB) will be used for the engineering, procurement and construction (EPC) contract of the power plant and common facilities, for supply contracts estimated to cost the equivalent of or more than $1.0 million, and for civil works contracts valued at more than $3 million. National competitive bidding (NCB)/Limited international bidding will be used for supply contracts valued at less than $1 million. Civil works contracts estimated at less than $3.0 million will be procured following NCB procedures acceptable to ADB. Miscellaneous goods and civil works contracts valued at less than $100,000 will be procured using shopping procedures. Contract packages will be prepared to ensure maximum competition under ICB. Similar contractual arrangements and specifications will be applied to other subprojects.
Responsible ADB Officer Takafumi Kadono
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Viet Nam ElectricityMR. TRAN VAN DUOC, Vice Pres., Thermal Power Proj.69 Dinh Tien Hoang Street Hanoi, Viet Nam
Timetable
Concept Clearance 29 Sep 2005
Fact Finding 20 Jun 2006 to 03 Jul 2006
MRM 15 Aug 2006
Approval 21 Sep 2007
Last Review Mission -
Last PDS Update 04 Oct 2010

MFF Facility Concept

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

MFF Facility Concept 0013-VIE

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,099.60 Cumulative Contract Awards
ADB 930.71 - 0.00 0.00 %
Counterpart 168.89 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Safeguard Documents

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Evaluation Documents

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