51093-002: Northern to Central 500 kV Transmission Grid Reinforcement Project | Asian Development Bank

Viet Nam: Northern to Central 500 kV Transmission Grid Reinforcement Project

Sovereign (Public) Project | 51093-002 Status: Proposed

The project will support the Socialist Republic of Viet Nam in the implementation of its Revised National Power Development Master Plan 2011 2020 (Revised PDP VII). The project will (i) construct three new 500 kilovolt (kV) transmission lines [approximately 362 double circuit-kilometer (cct-km)] from northern to central Viet Nam to reach the grid reliability standard N-1, ensuring more reliable power supply to load centers and (ii) install an intelligent transmission line monitoring system for efficient and proactive operation and maintenance of transmission lines. The use of high temperature with low sag conductors and/or low losses conductors will also be reviewed for increasing reliability and reducing technical losses of the grid. The project will contribute to provide adequate and reliable power supply to sustain economic growth, and expand employment and income-generating opportunities articulated in the socioeconomic development strategy of Viet Nam.

Project Details

Project Officer
Jung, Choon Sik Southeast Asia Department Request for information
Country
  • Viet Nam
Sector
  • Energy
 
Project Name Northern to Central 500 kV Transmission Grid Reinforcement Project
Project Number 51093-002
Country Viet Nam
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Northern to Central 500 kV Transmission Grid Reinforcement Project
Ordinary capital resources US$ 200.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The project will support the Socialist Republic of Viet Nam in the implementation of its Revised National Power Development Master Plan 2011 2020 (Revised PDP VII). The project will (i) construct three new 500 kilovolt (kV) transmission lines [approximately 362 double circuit-kilometer (cct-km)] from northern to central Viet Nam to reach the grid reliability standard N-1, ensuring more reliable power supply to load centers and (ii) install an intelligent transmission line monitoring system for efficient and proactive operation and maintenance of transmission lines. The use of high temperature with low sag conductors and/or low losses conductors will also be reviewed for increasing reliability and reducing technical losses of the grid. The project will contribute to provide adequate and reliable power supply to sustain economic growth, and expand employment and income-generating opportunities articulated in the socioeconomic development strategy of Viet Nam. It is included in the draft Country Operations Business Plan 2018 2020.
Project Rationale and Linkage to Country/Regional Strategy

One of the core problems in the power sector is insufficient power grid infrastructure to provide adequate and reliable electricity supply to support economic development. In Viet Nam, there is an imbalance between power generation and power demand across regions. The southern region is the biggest power load center accounting for about 50% of total power demand in the country. However, this region is short on generating capacity while the northern and central regions are in surplus. A single 500 kV backbone transmission line (about 1,487 cct-km) completed in 1994 is currently the only connection between the northern and southern region. However, this overloaded line has reliability concerns due to occasional power faults that cause blackouts in some parts of the southern region. To address this issue, the National Power Transmission Corporation (NPT) is currently constructing a new 500 kV transmission line from the central to the southern region, and seeks ADB support for a new 500 kV transmission line from the northern to the central region.

Annual electricity demand growth in Viet Nam averaged 12.0% during 2005 2015. The peak demand grew from 9.5 gigawatts (GW) to 24.2 GW and total installed generation capacity increased from 11.6 GW to 38.9 GW over the period. The Revised PDP VII also projects the average power demand growth at 10.5% through 2020 and 8% during 2021 2030. Generation expansion plans to accommodate this power demand growth require commensurate transmission grid expansion.

To address this challenge, the government prepared the master plan for the development of power grids in the Revised PDP VII, which includes: (i) upgrading power transmission grids to reach the grid reliability standard N-1; (ii) addressing overload incidents and low voltage quality, ensuring a higher degree of reliability; (iii) constructing 500 kV transmission lines to connect to large load centers; and (iv) constructing 200 kV double-circuit transmission lines where applicable, all with highest technological specifications.

Based on the master plan for the development of power grids, the government prioritizes a new 500 kV transmission line from the northern to the central region for ADB financing, which comprises three segments: (i) a Nam Dinh-Thanh Hoa transmission line, (ii) a Thanh Hoa-Quynh Lap transmission line, and (iii) a Quynh Lap-Vung Ang transmission line.

The proposed project is aligned with the Viet Nam country partnership strategy (2016 2020) and consistent with the Viet Nam Energy Sector Assessment, Strategy, and Road Map. The transaction technical assistance for the project is included in the country operation business plan (2017 2019).

Impact Adequate and reliable power supplied (National Power Development Master Plan 2011-2020 with vision to 2030)
Outcome Power Transmission grid efficiency and reliability from the Northern to Central region increased
Outputs

500 kV transmission line from the Northern to Central region constructed.

Intelligent transmission line monitoring system installed and operation capacity improved.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples B
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 A consulting firm will be engaged to provide consulting services including 26 person-months of international consultants and 28 person-months of national consultants who are experts in the areas of power transmission grid, procurement, economy, finance, safeguards (environment and social resettlement), smart grid, and climate change. Recruitment will be by quality- and cost-based selection method with a technical: financial weighting of 90:10. The consultants will be engaged by ADB in accordance with ADB Procurement Policy and Procurement Regulations for ADB Borrowers, 2017
Responsible ADB Officer Jung, Choon Sik
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
National Power Transmission Corporation
18 Tran Nguyen Han Street,
Hoan Kiem District, Hanoi-Vietnam
Ha Noi
Timetable
Concept Clearance 11 Sep 2017
Fact Finding 03 Jun 2019 to 07 Jun 2019
MRM 31 Oct 2019
Approval -
Last Review Mission -
Last PDS Update 22 Sep 2017

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.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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