Viet Nam : Song Bung 4 Hydropower Project

Sovereign Project | 36352-013

The Project's objective is to contribute to meet Viet Nam's increasing power demand in an environmentally sustainable and socially inclusive manner.

The Project's scope is the construction of Song Bung 4 hydropower project in compliance with ADB's safeguard requirements and the restoration and improvement of livelihoods of Project affected people.

Project Name
Song Bung 4 Hydropower Project
Project Number
36352-013
Country / Economy
  • Viet Nam
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 2429-VIE: Song Bung 4 Hydropower Project
Source Amount
Ordinary capital resources US$ 196.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
Sector / Subsector
  • Energy / Large hydropower generation

Gender
Some gender elements
Description

The Project's objective is to contribute to meet Viet Nam's increasing power demand in an environmentally sustainable and socially inclusive manner.

The Project's scope is the construction of Song Bung 4 hydropower project in compliance with ADB's safeguard requirements and the restoration and improvement of livelihoods of Project affected people.

Project Rationale and Linkage to Country/Regional Strategy

Viet Nam has maintained an average economic growth of 7.5% during the last 10 years and has reduced the incidence of poverty from 58% in 1993 to less than 25% in 2005. This has been achieved through rapid industrialization and urbanization, which has resulted in an increasing demand for electricity. Electricity demand has grown at an average rate of 15% per annum and is forecast to maintain the same growth rate until 2010 and then reduce to 12% by 2015.

The planned capacity addition for the period 2006-2015 is over 23,000 MW of which over 10,000 MW is already under construction. The total investment requirement in the power sector for the period 2006-2011 is expected to be about $23 billion, out of which Electricity of Vietnam (EVN) plans to make an investment of $14 billion, with non-EVN investments in the sector, including the private sector, expected to be $9 billion. Hence, financing from the Asian Development Bank (ADB) would bridge the financing gap of the sector and complement financing from other sources.

The Project is the first hydropower project in Viet Nam to receive financing from a multilateral financial institution and has been designed to effectively address environmental and social impacts in a sustainable and socially inclusive manner. The Project will also promote Integrated Water Resource Management (IWRM) in the river basin through policy dialogue and targeted technical assistance.

Impact

Meeting Vietnam's increasing power demand in an environmentally sustainable and socially inclusive manner.

Project Outcome

Description of Outcome

Increased power generation capacity in Quang Nam Province through sustainable use of hydropower, and mitigation of adverse environmental and social impacts.

Progress Toward Outcome
All units commissioned and no outstanding environmental and social issues.

Implementation Progress

Description of Project Outputs

Construction and commissioning of the 156 MW song Bung 4 Hydropower Project and associated facilities

Improvement of livelihoods of project-affected persons in a sustainable manner.

Status of Implementation Progress (Outputs, Activities, and Issues)

Complied.

Complied.

Complied. Programs being implemented continuously.

No legitimate claims received.

Geographical Location
Huyen Nam Giang

Safeguard Categories

Environment
A
Involuntary Resettlement
A
Indigenous Peoples
A

Summary of Environmental and Social Aspects

Environmental Aspects

Change in hydrology downstream of the dam: The water flow in the river stretch between the dam and power station will be almost negligible and flows downstream of the power station will be significantly affected reflecting the operation regime of the power station. If the power station is operated as a peaking plant as expected, there will be significant fluctuations in the water level which could be as high as 1.5 m in the immediate vicinity of the power station. This fluctuation would diminish further downstream reducing to 0.2 m in the inhabited sections of the river.

Release of greenhouse gases from the reservoir: During the first 3-5 years of reservoir operation, the reservoir will be anaerobic and greenhouse gases such as methane and carbon dioxide will be released to the atmosphere through the turbines and reservoir surface. However, after a few years, the reservoir will become oligotrophic and the emissions will be reduced. Cumulative emissions are estimated to be much less than the emissions from a fossil fuel fired power plants of similar size.

Increased access to Song Thanh Nature Reserve (STNR): The reservoir will inundate about 143 ha of the STNR which is less than 0.2% of the area of the reserve. More importantly there will be increased access to the nature reserve through the reservoir and the realigned highway 14D. The capacity building for STNR authorities and the CBFM plan under the conservation off-set will contribute to preserving the biodiversity in the Project area, and specifically the STNR.

Impacts on Aquatic Ecology and Fauna: The altered hydrology in the Bung River will cause adverse impacts on the aquatic ecology of the river as the diurnal fluctuations in the water level and the dry sections of the river will affect the biological productivity of the river and reduce the fish populations. The migratory barrier of the SB4 dam, and later the SB5 dam downstream, if constructed, will adversely impact the migratory fish that use the river for spawning. It was not found that aquatic and faunal species are considered endangered, and impacts will have insignificant biodiversity implication. Strict enforcement against illegal hunting and fishing will be imposed under the EMP.

Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

The planning approach followed to date has enabled full participation of the resettlers in the detailed resettlement planning process so that their concerns and needs are fully reflected in the REMDP. This approach has allowed flexibility and adaptability, particularly in the selection of resettlement sites, and design of the resettlement strategy and household livelihood activities, so that they are tailored towards the needs and situation of each individual household. Local level consultations have been targeted at the men and women affected by reservoir inundation, Project construction, and upstream and downstream impacts. Information on compensation, resettlement and livelihood options has been presented to all affected men and women by trained community and district facilitators through easily understandable visual materials together with verbal explanations in the Co Tu language, site visits of village men and women to proposed resettlement areas, and open discussions and feedback on proposals, concerns and preferences. All affected persons have been informed and consulted regarding the impacts, proposed mitigation and rehabilitation measures

During Project Implementation
To ensure that the basic rights of Project-affected peoples are protected, concerns adequately addressed and entitlements delivered, a grievance procedure will be implemented. The first level of complaint will be the Village Resettlement Committee, followed by Commune and District Resettlement Grievance Committees. The Commune Grievance Committee will include the Commune Women's Union Chief and another woman representative of the Commune, who will be a Co Tu woman for Co Tu villages; the District Grievance Committee will include representation from the Justice Department, Women's Union, Ethnic Council, and Department of Agriculture.

Business Opportunities

Consulting Services

About 121 person-months of International consultants and about 1,189 person-months of national consultants assisted in (i) review of bid documents and in bid evaluation; (ii) contract negotiation; (iii) construction supervision and management; and (iv) monitoring effectiveness of social and environmental measures of the Project. These consultants were financed under the loan, and recruited engaged and engaged by EVN in accordance with ADB's Guidelines on the Use of Consultants. There were two ADB-financed consulting service contracts as set out below.

(i) Construction supervision for the major civil works contracts including the support for implementing the EMP during construction. A recognized expert on concrete dams will be also provided under this consultancy package to ensure the quality of design and construction of the RCC dam. These services were obtained through an international firm of consultants to be recruited using Quality Cost Based Selection (QCBS) and will require 121 person months of international consultants and 1,129 person months of national consultants.

(ii) A national monitoring agency was engaged using Fixed Budget Selection to undertake the independent monitoring of the effectiveness of implementing environmental and social mitigation measures. This will require about 60 person months of national consultancy services.

Procurement
Procurement of works, goods and services financed by ADB made in accordance with ADB's Procurement Guidelines. The major civil works were divided into four packages (i.e. (i) dam & spillway (ii) Waterway and power station (iii) transmission line and (iv) realignment of highway 14 D) procured using international competitive bidding (ICB) procedures. The first two packages were subjected to prequalification of contractors. The equipment component was divided into two packages (i.e. (i) Electromechanical equipment and (ii) Hydro mechanical equipment) and procured using ICB procedures. Small civil works contracts partly or wholly financed by ADB and costing up to and less than $2 million and goods costing less than $ 1 million procured using National Competitive Bidding (NCB) procedures acceptable to ADB and subjected to selective post review. For certain equipment and goods, procurement by shopping for contracts estimated to cost less than $500,000 and direct purchase procedures for contracts estimated to cost less than $100,000 was authorized.

Contact

Responsible ADB Officer
Suga, Michiko
Responsible ADB Department
Southeast Asia Department
Responsible ADB Division
Energy Division, SERD
Executing Agencies
Viet Nam Electricity

Timetable

Concept Clearance
05 Aug 2005
Fact Finding
31 Jul 2006 to 11 Aug 2006
MRM
14 Sep 2006
Approval
26 Jun 2008
Last Review Mission
-
PDS Creation Date
27 Apr 2007
Last PDS Update
31 Mar 2016

Funding

Loan 2429-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2008 06 Oct 2008 16 Jan 2009 30 Jun 2014 31 Dec 2015 21 Jul 2016
Financing Plan
  Total (Amount in US$ million)
Project Cost 267.30
ADB 196.00
Counterpart 71.30
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 181.14 0.00 100%
Cumulative Disbursements 17 Jun 2022 181.14 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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 Access to Information Policy (AIP) 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.


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.

Title Document Type Document Date
Song Bung 4 Hydropower Project: Environmental Monitoring Report (January-December 2015) Environmental Monitoring Reports Jan 2016
Song Bung 4 Hydropower Project: Final Independent Monitoring Report on the Combined Resettlement Plan and Ethnic Minority Development Plan Social Monitoring Reports Jul 2015
Song Bung 4 Hydropower Project: Environmental Monitoring Report (April 2015) Environmental Monitoring Reports Apr 2015
Song Bung 4 Hydropower Project: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Feb 2015
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 12 Social Monitoring Reports Jan 2015
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 11 Social Monitoring Reports Sep 2014
Song Bung 4 Hydropower Project: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 10 Social Monitoring Reports Jun 2014
Song Bung 4 Hydropower Project: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Jan 2014
Song Bung 4 Hydropower Project: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Sep 2013
Song Bung 4 Hydropower Project: Environmental Monitoring Report (August 2013) Environmental Monitoring Reports Aug 2013
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 9 Social Monitoring Reports Jul 2013
Song Bung 4 Hydropower Project: Social Monitoring Report (January 2013) Social Monitoring Reports Jan 2013
Song Bung 4 Hydropower Project: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Jan 2013
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 8 Social Monitoring Reports Jan 2013
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Parum B Village–Zuoih Commune Combined Resettlement Plan and Indigenous Peoples Plans Sep 2012
Song Bung 4 Hydropower Project: Social Monitoring Report (July 2012) Social Monitoring Reports Jul 2012
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 7 Social Monitoring Reports Jul 2012
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Parum A Village–Zuoih Commune, Nam Giang District, Quang Nam Province Combined Resettlement Plan and Indigenous Peoples Plans Feb 2012
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 6 Social Monitoring Reports Feb 2012
Song Bung 4 Hydropower Project: Environmental Monitoring Report (July-December 2011) Environmental Monitoring Reports Dec 2011
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Padhi-Zuoih Commune Combined Resettlement Plan and Indigenous Peoples Plans Nov 2011
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Land Acquisition for Zuoih Commune Administrative Office Center Combined Resettlement Plan and Indigenous Peoples Plans Oct 2011
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 5 Social Monitoring Reports Aug 2011
Song Bung 4 Hydropower Project: Environmental Monitoring Report (January-June 2011) Environmental Monitoring Reports Jun 2011
Song Bung 4 Hydropower Project: REMDP Volume 2: Compensation Plan for Reservoir Inundated Village (Thon 2) Combined Resettlement Plan and Indigenous Peoples Plans Jun 2011
Song Bung 4 Hydropower Project: Volume 2 - Reservoir Resettlement and Development Plan: Addendum on DMS and Compensation Plan for Pa Dhi Access Road Combined Resettlement Plan and Indigenous Peoples Plans Mar 2011
Song Bung 4 Hydropower Project: Resettlement Due Diligence Report for Access Road to Pa Rum A and Pa Rum B Resettlement Sites Combined Resettlement Plan and Indigenous Peoples Plans Jan 2011
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 4 Social Monitoring Reports Jan 2011
Song Bung 4 Hydropower Project: Resettlement Due Diligence Report for Access Road to Pa Pang Resettlement Site Combined Resettlement Plan and Indigenous Peoples Plans Jan 2011
Song Bung 4 Hydropower Project: Volume 2: Reservoir Resettlement and Development Plan (Updated) Combined Resettlement Plan and Indigenous Peoples Plans Dec 2010
Song Bung 4 Hydropower Project: Volume 1: Cross Cutting Issues (September 2010) Combined Resettlement Plan and Indigenous Peoples Plans Sep 2010
Song Bung 4 Hydropower Project: Volume 1: Cross Cutting Issues (August 2010) Combined Resettlement Plan and Indigenous Peoples Plans Aug 2010
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 3 Social Monitoring Reports Jul 2010
Song Bung 4 Hydropower Project - Volume 3: Project (Construction) Lands Resettlement Plan Combined Resettlement Plan and Indigenous Peoples Plans Apr 2010
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 2 Social Monitoring Reports Jan 2010
Song Bung 4 Hydropower Project: Independent Monitoring Report No. 1 Social Monitoring Reports Jul 2009
Song Bung 4 Hydropower Project Phase II: Environmental Impact Assessment Environmental Impact Assessments Jan 2007
Song Bung 4 Hydropower Project Phase II: Environmental Impact Assessment (tiếng Việt) Environmental Impact Assessments Jan 2007
Song Bung 4 Hydropower Project Phase II Summary Environmental Impact Assessments Aug 2006

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications


The Access to Information Policy (AIP) 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.

  • 17 Apr 2013 | Project Result / Case Study

    Viet Nam's Song Bung 4 Hydropower: Health Care and Education

    A hydropower energy project in Central Viet Nam has disrupted the lives of an isolated ethnic minority, but offers better health care and educational opportunities for a bright future.
  • 17 Apr 2013 | Project Result / Case Study

    Viet Nam's Song Bung 4 Hydropower: Impact on Women

    Though the Song Bung 4 hydropower dam and energy project relocated Co Tu minority in Viet Nam’s central region, it also offered new income opportunities and empowered local women.
  • 17 Apr 2013 | Photo Essay

    Better Lives through Better Resettlement

    The ADB-supported Song Bung 4 hydropower dam is being constructed to support Viet Nam's growing energy needs. Despite efforts to minimize the impact on the villagers in the site, more than 1000 people had to be relocated. ADB is working hard not only to resettle them, but also change their lives for the better.

Tenders

Tender Title Type Status Posting Date Deadline
Loan No. 2429-VIE: Song Bung 4 Hydropower Project Package 1 (XL - 01) and Package 2 (XL - 02) Prequalified applicants Archived

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.