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 approved number of MFF tranches is 3.
Note: The MFF was initially scheduled into 4 tranches. However, to maintain public debt below the threshold of 65% of GDP, the Government decided not to proceed with tranche 4. Overall MFF outcome and output targets are still achievable.
| Project Name | Power Transmission Investment Program (MFF) | ||||
| Project Number | 42039-033 | ||||
| Country | Viet Nam |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | |||||
| Sector / Subsector | Energy / Electricity transmission and distribution |
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| Gender Equity and Mainstreaming | No gender elements | ||||
| Description | 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 approved number of MFF tranches is 3. Note: The MFF was initially scheduled into 4 tranches. However, to maintain public debt below the threshold of 65% of GDP, the Government decided not to proceed with tranche 4. Overall MFF outcome and output targets are still achievable. |
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| 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. |
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| Impact | Meeting electricity demand growth from industrial, commercial and residential consumers throughout Viet Nam | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Enhanced capacity of transmission network to balance power load in northern, central, and southern Viet Nam |
| Progress Toward Outcome | |
| Implementation Progress | |
| 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 | |
|---|---|
| Environmental Aspects | At tranche level |
| Involuntary Resettlement | At tranche level |
| Indigenous Peoples | At tranche level |
| Stakeholder Communication, Participation, and Consultation | |
| 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 $100,000 or less. Secondary equipment for expansion of existing 500 kV and 220 kV substations under operation using computerized control system may be procured on the basis of international shopping or through direct contracting, as appropriate. |
| Responsible ADB Officer | Au, Tuan Minh |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Viet Nam Resident Mission |
| Timetable | |
|---|---|
| Concept Clearance | 03 Dec 2010 |
| Fact Finding | 09 Aug 2011 to 19 Aug 2011 |
| MRM | 20 Sep 2011 |
| Approval | 16 Dec 2011 |
| Last Review Mission | - |
| Last PDS Update | 16 Sep 2015 |
MFF Facility Concept 0066-VIE
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ 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 | % |
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.
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| 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.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
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Tenders
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Contracts Awarded
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Procurement Plan
None currently available.