Viet Nam: Power Transmission Investment Program (MFF)

Sovereign Project | 42039-033

Summary

The investment program will enhance the capacity of the transmission network to balance power loads in northern, central, and southern Viet Nam. It will (i) expand the electricity transmission infrastructure by constructing and upgrading 500 kilovolt (kV) and 220 kV transmission lines and associated substations, (ii) improve the operational effectiveness and efficiency of the National Power Transmission Corporation, and (iii) support the implementation of the investment program.

The expected total number of MFF tranches is 4.

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Consulting Notices

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Procurement Notices

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Procurement Documents

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Project Name Power Transmission Investment Program (MFF)
Project Number 42039-033
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0066-VIE: Power Transmission Investment Program (MFF)
Ordinary capital resources US$ 730.00 million
MFF Facility Concept: Power Transmission Investment Program (MFF)
Agence Francaise de Developpement US$ 100.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming No gender elements
Description

The investment program will enhance the capacity of the transmission network to balance power loads in northern, central, and southern Viet Nam. It will (i) expand the electricity transmission infrastructure by constructing and upgrading 500 kilovolt (kV) and 220 kV transmission lines and associated substations, (ii) improve the operational effectiveness and efficiency of the National Power Transmission Corporation, and (iii) support the implementation of the investment program.

The expected total number of MFF tranches is 4.

Project Rationale and Linkage to Country/Regional Strategy

Viet Nam's rapid development has been accompanied by steadily growing demand for electricity for both industrial development and private consumption. Consumption grew by an average of 14% annually during 2004-2010, substantially surpassing the average economic growth rate of 7% per year in the same period. Demand for electricity is expected to continue growing by an average of 14% per year during 2011-2015 and 11% during 2016-2020. It is projected that electricity consumption will increase from 85,932 gigawatt-hours in 2010 to 251,763 gigawatt-hours in 2020.

Industry consumes 52% of electricity, residential consumers 39%, service businesses 8%, and agriculture 1%. While industry is the largest electricity consumer, it is also the most important sector economically, projected by 2015 to account for 41% of gross domestic product, 29% of the workforce, and 87% of export revenues. Ensuring reliable electricity supply is therefore an important prerequisite to sustaining economic growth at the target of 7.5%-8.0% per year.

Viet Nam has made remarkable progress in expanding access to electricity, as the percentage of households without electricity fell from 22% in 1999 to only 3% in 2010. Those communities that are not yet connected to the grid are mainly in the less-developed and rather sparsely populated mountainous areas of the northwest. Per capita income reached $1,168 in 2010, and the poverty rate fell to 14.2%. The high concentration of industrial parks and general economic development induce many people to migrate to the centers of dynamic development and employment opportunities in the southeast, Central Highlands, and Red River Delta. Without additional generation capacity and transmission network expansion, the main load centers in these regions are expected to suffer a worsening electricity supply deficit and the share of urban and rural populations without electricity is expected to increase, in particular among populations with lower income and electricity consumption.

Impact Meeting electricity demand growth from industrial, commercial and residential consumers throughout Viet Nam
Project Outcome
Description of Outcome Enhanced capacity of transmission network to balance power load in northern, central, and southern Viet Nam
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Component 1: Expanded Transmission Network

Component 2: Improved Operational Effectiveness and Efficiency of National Power Transmission Corporation

Component 3: Project Implementation Support

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects At tranche level
Involuntary Resettlement At tranche level
Indigenous Peoples At tranche level
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder participation and consultations were undertaken with the National Power Transmission Corporation, various government ministries at national, provincial and district level. The resettlement and ethnic minority development framework and environmental review framework establishes detailed requirements for consultation with affected people and disclosure during the preparation and implementation of future financing tranches.
During Project Implementation
Business Opportunities
Consulting Services Consultant services financed from ADB's loan proceeds will be recruited according to ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement International competitive bidding procedures (ICB) will be used for civil works contracts estimated to cost $5.0 million or more, and supply contracts valued at $500,000 or more. National competitive bidding procedures (NCB) will be used for civil work contracts valued less than $5.0 million, and for supply contracts valued less than $500,000 but more than $100,000. Qualification and eligibility requirements will be specified in the procurement plan and bidding documents. International shopping will be authorized for procurement of goods and works with a contract price equivalent of $100,000 or less. Secondary equipment for expansion of existing 500 kV and 220 kV substations under operation using computerized control system may be procured on the basis of international shopping or through direct contracting, as appropriate.
Responsible ADB Officer Daniela Schmidt
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
National Power Transmission Corporation885 Hong Ha Street
Hoan Kiem District
Ha Noi
Timetable
Concept Clearance 03 Dec 2010
Fact Finding 09 Aug 2011 to 19 Aug 2011
MRM 20 Sep 2011
Approval 16 Dec 2011
Last Review Mission -
Last PDS Update 26 Mar 2015

MFF Facility Concept

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 100.00 - 0.00 0.00 %

MFF Facility Concept 0066-VIE

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 920.00 Cumulative Contract Awards
ADB 730.00 - 0.00 0.00 %
Counterpart 190.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %
Title Document Type Document Date
Framework Financing Agreement for the Multitranche Financing Facility to the Socialist Republic of Viet Nam for the Power Transmission Investment Program Framework Financing Agreement Jan 2012
Power Transmission Investment Program Facility Administration Manual Nov 2011
Power Transmission Investment Program Reports and Recommendations of the President Nov 2011
Power Transmission Investment Program Summary Poverty Reduction and Social Strategies Nov 2011
Power Transmission Investment Program (MFF) Design and Monitoring Frameworks Sep 2011

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Power Transmission Investment Program (MFF): Initial Environmental Examination for 500 kv/220 kV Pho Noi Substation and Connection Lines Initial Environmental Examination Nov 2011
Power Transmission Investment Program (MFF): Environmental Assessment and Review Framework (as of Board approval) Environmental Assessment and Review Framework Nov 2011
Power Transmission Investment Program (MFF): Initial Environmental Examinations (as of Board approval) Initial Environmental Examination Nov 2011
Power Transmission Investment Program (MFF): Initial Environmental Examination for 220 kV Song May-Uyen Hung Transmission Line Initial Environmental Examination Nov 2011
Power Transmission Investment Program (MFF): Resettlement and Ethnic Minority Development Framework (as of Board aproval) Combined Resettlement Framework and Indigenous Peoples Planning Frameworks Nov 2011
Power Transmission Investment Program (MFF): Initial Environmental Examination for 220 kV Phu My 2 Industrial Zones and Connection Lines Initial Environmental Examination Nov 2011
Power Transmission Investment Program (MFF): Resettlement Plans (as of Board approval) Resettlement Plans Nov 2011
Power Transmission Investment Program (MFF): Initial Environmental Examination for 500 kV/220 kV Bac Ninh2-Pho Noi Transmission Line Initial Environmental Examination Nov 2011
Power Transmission Investment Program (MFF) Combined Resettlement Framework and Indigenous Peoples Planning Frameworks Nov 2011
Power Transmission Investment Program (MFF): Resettlement Plan for Bac Ninh 2 - Pho Noi 500/220kV T/L Project Resettlement Plans Oct 2011
Power Transmission Investment Program (MFF): Resettlement Plan for 220kV Phu My 2 Industrial Zone Sub-station and Connections Subproject Resettlement Plans Oct 2011
Power Transmission Investment Program (MFF): Resettlement Plan for Song May-Uyen Hung Transmission Line Subproject Resettlement Plans Oct 2011
Power Transmission Investment Program (MFF): Resettlement Plan for 500kV Pho Noi Substation and Connections Resettlement Plans Oct 2011
Power Transmission Investment Program (MFF) Environmental Assessment and Review Framework Sep 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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