Viet Nam: Power Transmission Investment Program (MFF)

Overview
Project Data Sheet
Documents

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.

Latest Project Documents

Title	Date
Framework Financing Agreement for the Multitranche Financing Facility to the Socialist Republic of Viet Nam for the Power Transmission Investment Program	Jan 2012
Power Transmission Investment Program (MFF): Resettlement Plans (as of Board approval)	Nov 2011
Power Transmission Investment Program (MFF): Initial Environmental Examination for 500 kV/220 kV Bac Ninh2-Pho Noi Transmission Line	Nov 2011

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

None currently available.

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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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.

Project Name

Power Transmission Investment Program (MFF)

Project Number

42039-033

Country

Viet Nam

Project Status

Active

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
MFF Facility Concept: Power Transmission Investment Program (MFF)
KfW Bankengruppe	US$ 71.01 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 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

Implementation Progress
Description of Outcome	Enhanced capacity of transmission network to balance power load in northern, central, and southern Viet Nam
Progress Toward Outcome
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

Stakeholder Communication, Participation, and Consultation
Environmental Aspects	At tranche level
Involuntary Resettlement	At tranche level
Indigenous Peoples	At tranche level
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 Staff

Responsible ADB Officer	Daniela Schmidt
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	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	16 Sep 2015

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

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
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): Initial Environmental Examination for 500 kv/220 kV Pho Noi Substation and Connection Lines	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

None currently available.

Related Publications

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.

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