|Project Name||Northern Power Transmission Expansion (Sector) Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Energy - Electricity transmission and distribution
|Gender Equity and Mainstreaming||No gender elements|
|Description||The project represents a 5-year time slice of Electricity of Viet Nam's (EVN) power transmission system development plan, covering 500 kilovolt (kV) and 220 kV transmission lines and associated substations. The project will transmit power from remote power plants to the northern part of Viet Nam, which is relatively poor. This enables adequate and reliable power supply required in the planned socio-economic development activities including new industrial parks. The Project will also create the potential for regional power interconnection.|
|Project Rationale and Linkage to Country/Regional Strategy||Economic growth has been averaging about 7% per year from 1995 to 2005. This, in turn, has fueled growth in demand for electricity by about 15% per year. This rapid economic expansion has helped Viet Nam reduce the share of the population living in poverty from 58% in 1993 to 25% in 2005. The Government' aimed to sustain the economic growth to reduce poverty incidence. Due to the strong economic growth, Viet Nam's electricity supply deficit increased, especially during the dry season, due to its heavy dependence on hydropower. To meet the load growth, the government started expanding the generation capacity. To transmit the generated power to the load centers, it is reuiqred to develop the transmission networks. During the project design, EVN envisages an investment requirement of $17.5 billion up to 2010, which will not materialize without long-term finance. While local financing were available, the terms were comparatively short. Hence the government approached Asian Development Bank (ADB). ADB apporved the loan, in view of a robust and reliable transmission network with an enabling environment will attract increased private sector participation in generation, transmission, and distribution. Policy dialogue on safeguard issues, and ADB's involvement in reviewing and providing comments to refine EVN's environmental and social policy and procedures, will contribute to EVN's adoption of best practices in safeguard policies and implementation of safeguard measures. Through its loan covenants, it is expected that the proposed project will further the ongoing power sector reforms to restructure EVN and create a viable electricity supply industry in Viet Nam, as well as to improve confidence of private sector investors in the nascent regulatory framework.|
|Impact||The livelihood of people in northern Viet Nam has been improved in a sustainable manner.|
|Description of Outcome||Households and the industries in northern Viet Nam have access to reliable supply of electricity|
|Progress Toward Outcome||All project facilities were completed and reliability of supply increased. Project completion report is being prepared.|
|Description of Project Outputs||
500 kV and 220 kV transmission networks expanded.
The power system in the northern Viet Nam is environmentally and socially acceptable.
One new substation is fully functional
Two existing substations are upgraded.
|Status of Implementation Progress (Outputs, Activities, and Issues)||
All the 12 subprojects were completed by the loan closing date, except one transmission line which were completed in September 2015 after resolving some compensation issues. The completed outputs include three 500 kV transmission lines (total 548 circuit-km), two 220 kV transmission lines (total 169 circuit-km), one new 500 kV substation of 1,800 MVA capacity which is the largest 500 kV substation in Viet Nam at present, expansion of two 500 kVA substations (450 MVA each for a total of 900 MVA), construction of four new 220 kV substations (total 750 MVA), and expansion of one 220 kV substation (250 MVA).
In addition, project provided spare equipment and materials delivered.
|Geographical Location||Northern Vietnam|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||EMP for the sub projects which have environmental impacts completed. Periodic monitoring reports disclosed in ADB website. Post environmental monitoring report was reviewed by ADB and disclosed in ADB website. Implementation of the environmental management plans is satisfactory.|
|Involuntary Resettlement||ADB noted issues in implementation of resettlement plans of the subprojects and requested executing agencies to rectify. Most of the resettlement issues identified during loan review missions, and local implementation consultants have been satisfactorily addressed and resolved, among which: (i) Remaining payment for affected assets (trees, crops) have been completed in all districts; (ii) Allowance for renting houses due to delay in completion of resettlement sites have been extended until the completion of the resettlement in all districts; (iii) Allocation of plots in resettlement sites have been mainly completed; and (iv) All 22 resettlement sites were completed with full infrastructure.|
|Indigenous Peoples||Communes in two provinces, Phu Tho and Son La are affected due to land acquisition. The proportion of ethnic minority households is around 60% in Phu Tho province and 100% in Son La province. The ethnic minority groups include the Muong and Thai, H'mong, Dao, Kho Mu, and Sinh Mun. Resettlement Plans were prepared for all subprojects and for some of the subprojects additional due diligence reports were prepared. Each plan contains activities for compensation and lively hood programs. All activities have been successfully completed and monitoring reports were uploaded in ADB website.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||
Executing Agencies conducted stakeholder consultations with: members of Son La Hydropower Project Management Board; Huoi Quang Project Management Board; government officials from the provincial, district, and commune people's committees of all project affected areas; representatives from the provincial and district resettlement committees; political party cells; National Institute of Agricultural Production and Projection; and Ministry of Agriculture and Rural Development.
In addition, field visits, observations, interviews, and discussions with commune and village officials, affected households, and host communities at the resettlement sites and proposed resettlement sites were carried out. Semi-structured questionnaires also were utilized in gathering information.
|During Project Implementation||Stakeholder Communication, Participation and Consultation continued during project implementation. Resettlement plans, initial environmental impact assessments, due diligence reports which include the stakeholder communication, participation and consultation activities which have been disclosed in the ADB website. Semiannual monitoring reports by local implementation consultants reviewed by divisional safeguards specialists have been disclosed. Loan review missions closely monitored the actions by the executing agencies to ensure all stakeholders have been involved in the process.|
2. Consulting Services
2. EVN has engaged and financed about 300 person-months of domestic consultants for (i) detailed technical design; (ii) bid preparation and procurement; (iii) construction supervision; (iv) implementing the environment management plans; (v) preparing and implementing the resentment plans; and (vii) socioeconomic impact assessment, and project performance monitoring.
3. During project design it was agreed that ADB loan will finance two international consultants for a total of 10 person-months and 14 person-months of national consultants. The international consultants to (i) prepare subproject resettlement plans; (ii) guide and supervise resettlement committees; (iii) train staff of project management boards (NPPMB, CPPMB), and resettlement committees; and (iv) assist NPPMB in the preparation of initial environment impact assessments and environmental management. The domestic consultants to (i) periodically monitor compliance with the approved resettlement plans by meeting with project-affected people, resettlement committees, project management boards, and other stakeholders, including independent domestic resettlement monitoring consultants; (ii) monitor compliance with approved environment plans for the subprojects; and (iii) implement the gender strategy. However executing agencies did not recruit any international consultants and only national consultants with 22 person-months input.
1. Executing agencies were advised that equipment and materials to be financed under the loan to be procured in accordance with ADB's Guidelines for Procurement. International competitive bidding (ICB) was used for supply contracts estimated at more than $1 million. International shopping was also used for contracts below $1 million. Civil works were procured through national competitive bidding for contract values of up to $3 million and ICB was used for contract values more than $3 million.
|Responsible ADB Officer||Wanniachchi Kankanamalage, Aruna K.|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Energy Division, SERD|
Viet Nam Electricity
Phan Luong Thien
1111D Hong Ha Street, Hanoi, Viet Nam
|Concept Clearance||07 Mar 2004|
|Fact Finding||03 Jul 2005 to 23 Jul 2005|
|MRM||12 Aug 2005|
|Approval||21 Dec 2005|
|Last Review Mission||-|
|PDS Creation Date||27 Feb 2006|
|Last PDS Update||26 Jan 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|21 Dec 2005||22 Aug 2006||24 Nov 2006||31 Dec 2010||31 Dec 2014||23 Oct 2015|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||452.70||Cumulative Contract Awards|
|ADB||360.00||21 Dec 2005||334.13||0.00||95%|
|Cofinancing||0.00||21 Dec 2005||351.72||0.00||100%|
|Status of Covenants|
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 Public Communications Policy (PCP) 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.
Evaluation Documents See also: Independent Evaluation
|Title||Document Type||Document Date|
|Viet Nam: Northern Power Transmission Expansion Sector Project||Validations of Project Completion Reports||Dec 2016|
None currently available.
The Public Communications Policy (PCP) 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.