42039-037: Power Transmission Investment Program - Tranche 4 | Asian Development Bank

Viet Nam: Power Transmission Investment Program - Tranche 4

Sovereign (Public) Project | 42039-037 Status: Proposed

The proposed tranche 4 is the final tranche of the $730-million multitranche financing facility (MFF) for the Power Transmission Investment Program, which was approved on 16 December 2011. The MFF supports partial implementation of National Power Sector Development Plan (PDP) VII to meet growing electricity demand of industrial, commercial and residential consumers throughout Viet Nam, and improve the operational effectiveness and efficiency of the National Power Transmission Corporation (NPT) - the entity responsible for financing, managing and operating the transmission network to ensure reliable electricity supply.

 
Project Name Power Transmission Investment Program - Tranche 4
Project Number 42039-037
Country Viet Nam
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Power Transmission Investment Program - Tranche 4
Ordinary capital resources US$ 144.11 million
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The proposed tranche 4 is the final tranche of the $730-million multitranche financing facility (MFF) for the Power Transmission Investment Program, which was approved on 16 December 2011. The MFF supports partial implementation of National Power Sector Development Plan (PDP) VII to meet growing electricity demand of industrial, commercial and residential consumers throughout Viet Nam, and improve the operational effectiveness and efficiency of the National Power Transmission Corporation (NPT) - the entity responsible for financing, managing and operating the transmission network to ensure reliable electricity supply.
Project Rationale and Linkage to Country/Regional Strategy Availability of adequate and reliable power supply is an essential prerequisite for maintaining Viet Nam''s enviable record of socioeconomic development. The government's PDP VII with an outlook to 2030 defines objectives, strategies and the road map to develop power sector and identified investment programs for generation and transmission sector. The rapid expansion of new power generation and electricity imports from neighboring countries requires that 500 kV and 220 kV transmission lines and associated substations be strengthened and developed commensurately to better balance regional power load systems by (i) removing transmission bottlenecks, (ii) facilitating power transfers, and (iii) reducing transmission system losses and voltage fluctuations and improving energy efficiency. In particular, the tranche 4 will enable electricity transmission from a large power plant cluster in the southern region to the national grid system to mitigate the risk of a looming power shortage in the south. The project is included in ADB's country operations business plan 2017-2019 and aligned with the country partnership and strategy for the period of 2016 -2020.
Impact Electricity demand growth of industrial, commercial and residential consumers throughout Viet Nam met by 2025.
Outcome Transmission network capacity enhanced to balance power load.
Outputs

Transmission Network Expanded: (a) 500 kV Chon Thanh-Duc Hoa T/L, (b) 500 kV Song Hau-Duc Hoa T/L, (c) Chau Duc 220 kV S/S, and (d) Ben Luc 220 kV S/S;

Operational Effectiveness and Efficiency of NPT Improved;

Project Implementation Support

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects All the subprojects of Tranche 4 are classified as Category B for environment. An Initial Environmental Examination (IEE) was undertaken which identified the potential environmental impacts and provided mitigating measures to be addressed in the Environmental Management Plan (EMP). The mitigation measures are consistent with international good practice, as reflected in internationally recognized standards, i.e. the WB Group's Environmental, Health and Safety Guidelines. None of the components are near a protected area, nature reserve or critical habitat. The land use in the affected areas is dominated by rubber trees, paddy rice, other agricultural crops, and fruit bearing trees. There are no known avian migration flyways in the areas with which the connector transmission lines could interfere. The main impacts on the subproject areas are the short-term construction disturbances of increased traffic and risk of traffic accidents and operation-related impacts and risks such as health and safety risks to workers and persons living near the transmission lines and substations. The construction phase will also potentially create dust and noise along the roads and vicinity due to construction vehicles and operation of heavy civil works equipment. These impacts along with the common issues of solid and liquid waste pollution, worker camp issues, and increased risk of worker and public injury can be managed with international standard best practices and management guidelines. There was adequate public consultation to the stakeholders and affected communities. A Grievance Redress Mechanism was developed to resolve complaints and informed to the general public and affected communities. As part of the IEE, due diligence of associated facilities and environmental audit of existing facilities were also undertaken. Song Hau 1 Power Plant, under development by PVN, is an associated facility of the 500 kV Song Hau - Duc Hoa T/L. The review identified a number of corrective actions to be taken by PVN. The government is requested to cause PVN to undertake the corrective actions. NPT will deliver training to their staff and contractors to strengthen the ability to implement and monitor the EMP.
Involuntary Resettlement

Four resettlement plans have been prepared for 500 kV Chon Thanh-Duc Hoa and five resettlement plans have been prepared for 500 kV Song Hau-Duc Hoa Transmission Lines as they cross four provinces and five provinces respectively. One resettlement plan has been prepared for Chau Duc Substation and one for Ben Luc Sub Station.

A total of 3,585 households have been affected in the 4 subprojects requiring land acquisition. Of this number of affected households 64 are severely affected by the loss of more than 10% or more of their productive assets. 754 houses will relocate on unaffected land holdings behind the existing dwellings. These will be outside the subproject right-of way.

A due diligence review of the social safeguards of Song Hau 1 Power Plant, under development by PVN, was undertaken due to the power plant being an associated facility of the 500 kV Song Hau - Duc Hoa T/L. The review identified a number of corrective actions to be taken by PVN. NPT will request PNV to undertake the corrective actions.

Social safeguard units supported by individual national consultants have been formed within NPT and SPMB to supervise implementation and assure compensation to affected people in accordance with the approved resettlement plans and corrective action plan. Implementation will be independently monitored.

The resettlement plans and due diligence review has been endorsed by NPT and ADB for posting on its website.

Indigenous Peoples The areas crossed by the transmission lines and substations are all occupied by communities belonging to the Vietnam national majority. This Project will thus not trigger the ADB Policy on Indigenous Peoples (1998); it will be classified category C and will not require the preparation of an indigenous people development plan.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were carried out among affected communities and meetings were conducted with local officials and representatives of nongovernment organizations, youth groups, and media to inform them about the project and draw out their concerns.
During Project Implementation Consultation meetings with affected people and project stakeholders are being done.
Business Opportunities
Consulting Services Consulting services will be required for project implementation support and capacity development. Key tasks include (i) procurement and bidding for the tendering of plant design, supply, and installation contracts; (ii) supervision of construction, testing and commissioning, and quality assurance; (iii) monitoring of project implementation and performance; and (iv) capacity development. The capacity development component will involve project management and monitoring activities, including safeguards monitoring and evaluation, and training on transmission system operations, and maintenance. Procurement of consulting services will be in accordance with ADB's Guidelines on the Use of Consultants (2015, as amended from time to time).
Procurement There will be 4 packages of civil works by international competitive bidding, 10 packages of equipment by international competitive bidding and 1 packages by direct contracting. Procurement of goods and works will be in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Lee, Hyunjung
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 -
Fact Finding -
MRM 09 Jun 2017
Approval -
Last Review Mission -
Last PDS Update 27 Sep 2017

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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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 - Tranche 4: Initial Environmental Examination Initial Environmental Examination Apr 2017
Power Transmission Investment Program: Resettlement and Ethnic Minority Development Framework Combined Resettlement Framework and Indigenous Peoples Planning Frameworks Aug 2016
PTIP Tranche 4 - 500 kV Song Hau-Duc Hoa Transmission Line: Tien Giang Segment Draft Resettlement Plan Resettlement Plans Jun 2016
PTIP Tranche 4 - 500 kV Song Hau-Duc Hoa Transmission Line: Vinh Long Segment Draft Resettlement Plan Resettlement Plans Jun 2016
PTIP Tranche 4 - 220 kV Ben Luc Substation and Connection Line: Draft Resettlement Plan Resettlement Plans Jun 2016
PTIP Tranche 4 - 500 kV Song Hau-Duc Hoa Transmission Line: Dong Thap Segment Draft Resettlement Plan Resettlement Plans Jun 2016
PTIP Tranche 4 - 220 kV Chau Duc Substation: Draft Resettlement Plan Resettlement Plans Jun 2016
PTIP Tranche 4 - 500 kV Song Hau-Duc Hoa Transmission Line: Hau Giang Segment Draft Resettlement Plan Resettlement Plans Jun 2016
PTIP Tranche 4 - 500 kV Song Hau-Duc Hoa Transmission Line: Long An Segment Draft Resettlement Plan Resettlement Plans Jun 2016
PTIP Tranche 4 - 500 kV Duc Hoa-Chon Thanh Transmission Line: Binh Duong Segment Draft Resettlement Plan Resettlement Plans May 2016
PTIP Tranche 4 - Song Hau 1 Thermal Power Plant: Draft Resettlement Due Diligence Report and Corrective Action Plan Safeguards Due Diligence Reports May 2016
PTIP Tranche 4 - 500 kV Duc Hoa-Chon Thanh Transmission Line: Binh Phuoc Segment Draft Resettlement Plan Resettlement Plans May 2016
PTIP Tranche 4 - 500 kV Duc Hoa-Chon Thanh Transmission Line: Long An Segment Draft Resettlement Plan Resettlement Plans May 2016
PTIP Tranche 4 - 500 kV Duc Hoa-Chon Thanh Transmission Line: Tay Ninh Segment Draft Resettlement Plan Resettlement Plans Apr 2016

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.

Requests for information may also be directed to the InfoUnit.

Tenders

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Contracts Awarded

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Procurement Plan