ADB is supporting power transmission upgrades in Viet Nam to meet growing demand for electricity. The first tranche of the multitranche loan facility will finance the expansion and upgrading of 500 kilovolt and 220kV transmission lines and associated substations. It covers capacity development and support for project implementation, including detailed engineering and construction supervision.
|Project Name||Power Transmission Investment Program - Tranche 1|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
|Sector / Subsector||
Energy / Electricity transmission and distribution - Energy sector development and institutional reform
|Gender Equity and Mainstreaming||Some gender elements|
The Project proposed for financing under Tranche 1 comprises the following three components:
(i) expansion and upgrading of 500kV and 220kV transmission lines and associated substations throughout Viet Nam. Tranche 1 will financed four subprojects.
(ii) build on ongoing capacity support provided by ADB through capacity building technical assistance. Under Tranche 1, the services of a consulting firm will be engaged to provide training to at least 20 staff on (i) strategic corporate planning, business planning, and management, and (ii) accounting, financial management, planning, and control.
(iii) support project implementation with focus on detailed engineering, construction supervision, procurement, safeguard compliance, and the preparation of subsequent tranches of the investment program.
|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||Enhanced capacity to balance power load in northern and southern Viet Nam|
|Description of Outcome||Strengthened operational capacity|
|Progress Toward Outcome||500 kV transmission lines were expanded by 25.6 km (2010 baseline: 3,987 km); 220 kV transmission lines by 49.3 km (2010 baseline: 10,820 km); 500 kV/220 kV substation capacity expanded by 600 MVA (2010 baseline: 12,450 MVA); and 220 kV/110kV substation capacity expanded by 500 MVA (2010 baseline: 28,032 MVA).|
|Description of Project Outputs||
Component 1: Expanded Transmission Network
Component 3: Project Implementation Support
Component 2: Improved Operational Effectiveness and Efficiency of NPT
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Under component 1, four subprojects were completed and operationalized as follows. (i) 500/220 kV Bac Ninh 2-Pho Noi transmission line in Dec 2015; (ii) 500/220 kV Pho Noi substation and connection lines in Jun 2016; (iii) 220 kV Phu My 2 Industrial Zone substation in Nov 2014 and (iv) 220 kV Song May Uyen Hung transmission line in Nov 2014.
Component 2 is deferred to Tranche 4.
Under Component 3, environmental and resettlement consultants were provided to improve the capacity of NPT in meeting safeguard compliance.
Financial closure envisaged in October 2017.
|Geographical Location||Pho Noi, Phu My, Song Co May, Tinh Bac Ninh, Uyen Hung|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Subprojects of tranche 1 are category B under ADB's environment guidelines. No component of any of the four subprojects is located in an environmentally sensitive or protected area, and potential impacts during construction will be mitigated by using good international construction practices. An initial environmental examination report with an environmental management plan and implementation budget was prepared for each of the subprojects of tranche 1 and is disclosed on ADB's website. Environmental and social units will be formed within each PPMB to supervise implementation and assure occupational and community health and safety until operation.|
|Involuntary Resettlement||Two subprojects of tranche 1 are category A - the 500kV/220kV Pho Noi substation and the 220kV Song May-Uyen Hung transmission line - and the other two subprojects are category B. There are 3 relocated households, 1,151 households were affected by land acquisition, including 296 households were significantly affected. The resettlement plans were prepared and implemented. Implementation have closely monitored.|
|Indigenous Peoples||Provincial governments confirmed that ethnic minorities do not reside in the subproject areas financed under tranche 1.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||The procurement plan is provided on ADB's website.|
|Procurement||The procurement plan is provided on ADB's website.|
|Responsible ADB Officer||Lee, Hyunjung|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Viet Nam Resident Mission|
National Power Transmission Corporation
18 Tran Nguyen Han Street,
Hoan Kiem District, Hanoi-Vietnam
|MRM||16 Dec 2011|
|Approval||29 Dec 2011|
|Last Review Mission||-|
|Last PDS Update||28 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|29 Dec 2011||10 Feb 2012||09 Jul 2012||31 Dec 2015||31 Dec 2016||29 Sep 2017|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||139.78||Cumulative Contract Awards|
|ADB||104.51||29 Dec 2011||86.39||0.00||99%|
|Cofinancing||0.00||29 Dec 2011||87.34||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.
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|Title||Document Type||Document Date|
|Power Transmission Investment Program - Tranche 1||Procurement Plans||Sep 2013|
|Project Agreement for Power Transmission Investment Program - Loan 1||Project/Program Agreements||Mar 2012|
|Loan Agreement for Power Transmission Investment Program - Loan 1||Loan Agreement (Ordinary Resources)||Feb 2012|
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.
None currently available.
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