Viet Nam: Supporting Implementation of the National Energy Efficiency Program

Sovereign Project | 41077-012

Summary

The envisioned impact of the TA is the establishment of energy efficient best practices in the country's industrial sector. The TA will provide the Ministry of Industry (MOI) with much needed expertise and resources to assist it in (i) designing and developing training methods and materials for Energy Managers in industrial factories; (ii) designing and conducting a survey of energy consumption industrial enterprises thus, creating the basis for analyzing energy consumption pattern of the country's industry sector recommending energy efficiency plans in some of the most energy intensive industries; and (iii) piloting energy audits in selected or voluntary industrial enterprises with ensuing recommended measures for realization of energy savings or improvement of energy consumption pattern. The ultimate goal is to assist MOI in achieving the target of 5% and 8% reduction of energy consumption in large industrial factories by 2010 and by 2015 respectively.

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Project Name Supporting Implementation of the National Energy Efficiency Program
Project Number 41077-012
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7024-VIE: Supporting Implementation of the National Energy Efficiency Program
ATF AFD GMS Project Preparation Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Energy - Energy efficiency and conservation
Gender Equity and Mainstreaming No gender elements
Description The envisioned impact of the TA is the establishment of energy efficient best practices in the country's industrial sector. The TA will provide the Ministry of Industry (MOI) with much needed expertise and resources to assist it in (i) designing and developing training methods and materials for Energy Managers in industrial factories; (ii) designing and conducting a survey of energy consumption industrial enterprises thus, creating the basis for analyzing energy consumption pattern of the country's industry sector recommending energy efficiency plans in some of the most energy intensive industries; and (iii) piloting energy audits in selected or voluntary industrial enterprises with ensuing recommended measures for realization of energy savings or improvement of energy consumption pattern. The ultimate goal is to assist MOI in achieving the target of 5% and 8% reduction of energy consumption in large industrial factories by 2010 and by 2015 respectively.
Project Rationale and Linkage to Country/Regional Strategy

In 2003, the Government of Viet Nam issued the Decree on Efficient Utilization of Energy and Energy Conservation. Subsequently in 2005, the Ministry of Industry and Trade (MOIT) prepared a National Targeted Program on Energy Efficiency and Conservation (EEC) for the period 2006?2015, which was approved by the Prime Minister on 14 April 2006. The Program called for a concerted effort in improving energy efficiency, reducing energy losses, and instituting measures for improving energy conservation in all sectors of the economy. The Program has time-bound targeted components and projects, with specific objectives and targets to be achieved by 2015 and beyond. The National Targeted Program on Energy Efficiency and Conservation is Viet Nam?s first comprehensive plan for setting up an institutional mechanism for sustained energy efficiency and conservation in all sectors of the economy. The Program uses economic incentives together with administrative measures to put in place day-to-day energy conservation practices in the whole society. The Program aims at achieving specific targets within a timeframe, to bring about actual reductions in energy production and consumption.

The specific objectives of the Program are to (i) formulate and implement a framework for effective management of EEC within the government, enterprises, and public services, and society as a whole; (ii) establish a model for EEC management and apply the model to 40% of the designated energy consumers/enterprises during the period 2006?2010 and to the remaining 60% by 2015; (iii) formulate and enforce an energy-efficient building code for all new buildings to be constructed after 2008; (iv) achieve 3%?5% reduction of the total energy consumption in the country during 2006?2010 and 5%?8% reduction during 2011?2015 (this is equivalent to saving 5 million toe and 13 million toe in the two periods, respectively, based on a business-as-usual scenario); (v) reduce energy consumption in the industry sector by 5% in 2006?2010 and 8% in 2011-2015 (equivalent to energy savings of 2.6 and 5.0 million toe).

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 Viet Nam
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 The implementation of the TA will require the services of a multidisciplinary team of consultants comprising international and domestic specialists. The TA requires 20 person months of intenational and 24 person months of domestic consultants.
Responsible ADB Officer Duy-Thanh Bui
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Department of Science, Technology and EnvironmentMr. Nguyen Dinh Hiephiepnd@moit.gov.vn54 Hai Ba Trung Street Hanoi, Vietnam
Timetable
Concept Clearance 02 May 2007
Fact Finding 11 Jun 2007 to 15 Jun 2007
MRM -
Approval 12 Dec 2007
Last Review Mission -
PDS Creation Date 07 Jun 2007
Last PDS Update 20 Aug 2010

TA 7024-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2007 26 Aug 2008 26 Aug 2008 31 Mar 2009 31 Dec 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 500,000.00 235,000.00 0.00 0.00 0.00 735,000.00 12 Dec 2007 694,905.26

Safeguard Documents

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Evaluation Documents

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