Viet Nam: Power Transmission Investment Program - Tranche 1

Sovereign Project | 42039-034

Summary

The Project proposed for financing under Tranche 1 comprises the following three components:

(i) expansion and upgrading of 500kV and 220kV transmission lines and associated substations throughout Viet Nam. Tranche 1 will financed four subprojects.

(ii) build on ongoing capacity support provided by ADB through capacity building technical assistance. Under Tranche 1, the services of a consulting firm will be engaged to provide training to at least 20 staff on (i) strategic corporate planning, business planning, and management, and (ii) accounting, financial management, planning, and control.

(iii) support project implementation with focus on detailed engineering, construction supervision, procurement, safeguard compliance, and the preparation of subsequent tranches of the investment program.

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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 - Tranche 1
Project Number 42039-034
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2848-VIE: Power Transmission Investment Program - Tranche 1
Ordinary capital resources US$ 120.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Electricity transmission and distribution - Energy sector development and institutional reform

Gender Equity and Mainstreaming Some gender elements
Description

The Project proposed for financing under Tranche 1 comprises the following three components:

(i) expansion and upgrading of 500kV and 220kV transmission lines and associated substations throughout Viet Nam. Tranche 1 will financed four subprojects.

(ii) build on ongoing capacity support provided by ADB through capacity building technical assistance. Under Tranche 1, the services of a consulting firm will be engaged to provide training to at least 20 staff on (i) strategic corporate planning, business planning, and management, and (ii) accounting, financial management, planning, and control.

(iii) support project implementation with focus on detailed engineering, construction supervision, procurement, safeguard compliance, and the preparation of subsequent tranches of the investment program.

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 Enhanced capacity to balance power load in northern and southern Viet Nam
Project Outcome
Description of Outcome Strengthened operational capacity
Progress Toward Outcome

Two subprojects have been commissioned end of 2014.

Continuous discussion between ADB and NPT on the implementation for improvement on operational effectiveness and efficiency of NPT.

All safeguard consulting services have been engaged and closely monitored by project management boards.

Implementation Progress
Description of Project Outputs

Component 1: Expanded Transmission Network

Component 2: Improved Operational Effectiveness and Efficiency of NPT

Component 3: Project Implementation Support

Status of Implementation Progress (Outputs, Activities, and Issues) All contract packages have been awarded and project implementation being closely monitored by ADB in coordination with NPT and PPMBs.
Geographical Location Viet Nam
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Subprojects of tranche 1 are category B under ADB's environment guidelines. No component of any of the four subprojects is located in an environmentally sensitive or protected area, and potential impacts during construction will be mitigated by using good international construction practices. An initial environmental examination report with an environmental management plan and implementation budget was prepared for each of the subprojects of tranche 1 and is disclosed on ADB's website. Environmental and social units will be formed within each PPMB to supervise implementation and assure occupational and community health and safety until operation.
Involuntary Resettlement Two subprojects of tranche 1 are category A - the 500kV/220kV Pho Noi substation and the 220kV Song May-Uyen Hung transmission line - and the other two subprojects are category B. There is no need to relocate houses, but 1,880 households will be affected by land acquisition, including 293 households likely to be significantly affected.
Indigenous Peoples Provincial governments confirmed that ethnic minorities do not reside in the subproject areas financed under tranche 1.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The procurement plan is provided on ADB's website.
Procurement The procurement plan is provided on ADB's website.
Responsible ADB Officer Jim Liston
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
National Power Transmission CorporationTUONGDP@NPT.EVN.VN885 Hong Ha Street
Hoan Kiem District
Ha Noi
Timetable
Concept Clearance -
Fact Finding -
MRM 16 Dec 2011
Approval 29 Dec 2011
Last Review Mission -
Last PDS Update 27 Mar 2015

Loan 2848-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Dec 2011 10 Feb 2012 09 Jul 2012 31 Dec 2015 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 155.77 Cumulative Contract Awards
ADB 120.50 29 Dec 2011 87.76 0.00 84%
Counterpart 35.27 Cumulative Disbursements
Cofinancing 0.00 29 Dec 2011 61.34 0.00 59%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Power Transmission Investment Program, Tranche 1: Semi-Annual Monitoring Report on Resettlement Plan Implementation (July-December 2014) Social Monitoring Reports Jan 2015
Power Transmission Investment Program - Tranche 1: 220kV Phu My 2 Industrial Zone Substation Semiannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
Power Transmission Investment Program - Tranche 1: 220kV Song May-Uyen Hung Transmission Line Semiannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
Power Transmission Investment Program - Tranche 1: 220kV Phu My 2 Industrial Zone Substation and Connection Lines Internal Monitoring Report on Resettlement Plan Implementation (October-December 2014) Social Monitoring Reports Jan 2015
Power Transmission Investment Program - Tranche 1: 220kV Song May-Uyen Hung Transmission Line Internal Monitoring Report on Resettlement Plan Implementation (October-December 2014) Social Monitoring Reports Jan 2015
Power Transmission Investment Program - Tranche 1 - 500kV/220kV Bac Ninh 2–Pho Noi Transmission Line Subproject: Semiannual Environmental Monitoring Report No. 2 (July-December 2014) Environmental Monitoring Reports Dec 2014
Power Transmission Investment Program (Tranche 1) - Bac Ninh 2-Pho Noi Transmission Line: Resettlement Plan (November 2014) Resettlement Plans Nov 2014
Power Transmission Investment Program (Tranche 1) - Pho Noi 500 kV Substation: Resettlement Plan (October 2014) Resettlement Plans Oct 2014
Power Transmission Investment Program (Tranche 1) - 220kV Song May-Uyen Hung Transmission Line: Resettlement Plan (September 2014) Resettlement Plans Sep 2014
Power Transmission Investment Program (Tranche 1) - 220kV Phu My 2 Industrial Zone Substation and Connection Lines: Resettlement Plan (September 2014) Resettlement Plans Sep 2014
Power Transmission Investment Program (Tranche 1) - 500kV/220kV Bac Ninh 2–Pho Noi Transmission Line Subproject: Semiannual Environmental Monitoring Report No. 1 (April-September 2014) Environmental Monitoring Reports Sep 2014
Power Transmission Investment Program - Tranche 1: 220kv Phu My 2 Industrial Zone Substation Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
Power Transmission Investment Program - Tranche 1: 220kv Song May - Uyen Hung Transmission Line Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014

Evaluation Documents

See also: Independent Evaluation

No documents found.


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