Viet Nam: Preparing the Support for the Public-Private Development of the O Mon Gas Pipeline Project

Sovereign Project | 41008-012

Summary

The purpose of the project preparatory technical assistance (PPTA) is to prepare for the construction of a 381 km gas pipeline to provide natural gas from the off-shore gas field to the power plants under construction at the O Mon Power Complex. The Project will not only ensure reliable supply of natural gas for power generation at O Mon power complex but also ensures electricity generation in an environmentally benign manner while continuing to sustain the country?s economic growth. The Project also supports public private partnership in construction of the gas pipeline.

Latest Project Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Preparing the Support for the Public-Private Development of the O Mon Gas Pipeline Project
Project Number 41008-012
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4923-VIE: Preparing the Support for the Public-Private Development of the O Mon Gas Pipeline Project
Japan Special Fund US$ 975,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming No gender elements
Description The purpose of the project preparatory technical assistance (PPTA) is to prepare for the construction of a 381 km gas pipeline to provide natural gas from the off-shore gas field to the power plants under construction at the O Mon Power Complex. The Project will not only ensure reliable supply of natural gas for power generation at O Mon power complex but also ensures electricity generation in an environmentally benign manner while continuing to sustain the country?s economic growth. The Project also supports public private partnership in construction of the gas pipeline.
Project Rationale and Linkage to Country/Regional Strategy

Viet Nam has experienced strong economic growth of over 7.5% per annum during the past seven years and achieved a gross domestic product (GDP) growth rate of 8.1% in 2006. This strong economic growth has resulted in an electricity demand growth rate of about 15% per annum. This rapid but equitable economic growth has contributed to Viet Nam?s success in bringing down the share of population below the poverty line from 58% in 1993 to 25% in 2005. The Government of Viet Nam aims to maintain this level of economic growth till 2010 and to further reduce poverty to 19%. In order to achieve this, GDP growth rate of 7.5% to 8% has to be maintained. To sustain such levels of GDP growth, the installed generating capacity would have to more than double to 26,000 megawatts (MW) by 2010.

Electricity growth rate is expected to grow at 15% per annum till 2010 and thereafter at a growth rate of 12% per annum as envisaged under the draft 6th Power Development Master Plan. This growth in electricity demand is fueled by strong industrial growth coupled with strong demand in consumer electrical goods. As a result, Viet Nam is facing a growing deficit in electricity supply and more so during the dry season, given its significant dependence on hydropower. In order to address this imbalance in power supply and at the same time improve the quality and reliability of electricity supply to industrial, commercial, residential and rural consumers in Viet Nam, a total of 30,000 MW of new generating capacity is planned for addition to the power system from 2006 to 2015.

Of this planned capacity addition, about 15,000 MW will be new thermal power plants and of this figure, 8,000 MW will natural gas fired power plants. The 2,760 MW O Mon power complex is one of the planned power projects to use natural gas and is included in the 6th Power Development Master Plan of Viet Nam. The O Mon Power Complex consists of four power plants. O Mon I (2 x 300 MW) is financed by JBIC and phase I of this is under construction. The plant will have dual firing capability- fuel oil and later operate on gas when it becomes available 2010. O Mon II (750 MW) will be bid out through competitive bidding in late 2007 as an IPP and to be operational by 2012. ADB will assist the Ministry of Industry (MOI) in this bidding process next year. O Mon III (660 MW) will use F9 gas turbines and will initially run on fuel oil and later switch to gas when it become available in 2010. O Mon IV (750 MW), an EVN power plants, will be financed by ADB in 2008.

The offshore gas block is estimated to be have reserves of 4-7 trillion cubic feet of gas (TCF) which is more that sufficient for 25 years of plant operation. Chevron is the operator of this offshore block and has been in discussion with Petro Vietnam and the Government on the gas price, volume of gas to be delivered, pipeline ownership structure, and pipeline routing and other technical specifications.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Can Tho Province, Vietnam
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

This PPTA is closed. No further activity will be taken.

Close.

During Project Implementation The PPTA is closed.
Business Opportunities
Consulting Services A total of 54 person-months of consulting inputs is required comprising of 29 person months of international consultants inputs and 25 pm of national consultants inputs. Individual consultants will be recruited and the expertise required are (i) gas exploration and production specialist; (ii) gas sector risk analysis specialist; (iii) environmental specialist; (iv) marine biologist; (v) air quality specialist; (vi) water and soil sedimentation specialist; (vii) project financial specialist; (viii) project economic analyst; (ix) aquatic specialist; (x) terrestrial biodiversity specialist; and (xi) social and resettlement specialist.
Responsible ADB Officer Duy-Thanh Bui
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Viet Nam Oil & Gas Corporation (PetroVietnam)Nguyen Tien Dzung18 Lang Ha, Hanoi, Viet Nam
Timetable
Concept Clearance 16 Jan 2007
Fact Finding 11 Dec 2006 to 13 Dec 2006
MRM -
Approval 19 Mar 2007
Last Review Mission -
PDS Creation Date 08 Feb 2007
Last PDS Update 05 Mar 2012

TA 4923-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Mar 2007 14 Feb 2008 14 Feb 2008 31 Aug 2007 31 Dec 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
975,000.00 0.00 0.00 0.00 0.00 0.00 975,000.00 19 Mar 2007 494,109.04

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.