The project preparatory technical assistance (PPTA) will conduct a feasibility study for the Asian Development Bank (ADB)'s supported Rural Electrification (RE) Project in Viet Nam, which should include: (i) rationale/justification of the rural electrification project; (ii) assessments of the project sites proposed by the government; (iii) full feasibility study for the selected project sites; and (iv) preparation of all project documents required by ADB for the investment of the project.
|Project Name||Rural Electrification|
|Project Status||Dropped / Terminated|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Electricity transmission and distribution
|Gender Equity and Mainstreaming||No gender elements|
|Description||The project preparatory technical assistance (PPTA) will conduct a feasibility study for the Asian Development Bank (ADB)'s supported Rural Electrification (RE) Project in Viet Nam, which should include: (i) rationale/justification of the rural electrification project; (ii) assessments of the project sites proposed by the government; (iii) full feasibility study for the selected project sites; and (iv) preparation of all project documents required by ADB for the investment of the project.|
|Project Rationale and Linkage to Country/Regional Strategy||
The Socialist Republic of Viet Nam's rural electrification program for 2013-2020 (the government's RE program) targets full electrification by 2020. The proposed project will (i) assist the government in achieving its target of 99.89% electrification by 2020; (ii) improve the reliability of power distribution networks in rural areas; and (iii) strengthen the institutional capacities of Ministry of Industry and Trade (MOIT), Provincial People's Committee(s) (PPC), Viet Nam Electricity (EVN), and Power Corporation(s) (PC) to undertake rural electrification projects.
According to the government's RE program, Viet Nam's electrification rate is expected to reach 98% by 2015. The program targets electrifying the remaining 2% by both on-grid and off-grid which corresponds to around 501,000 households and the rehabilitation of distribution networks benefiting around 642,000 households across 48 provinces by 2020. Moreover existing rural households which have access to electricity suffer from poor quality of electricity supply. A leading cause is the traditional electrification approach where EVN provides medium voltage networks to the center of the villages and the provincial governments and local communities are then responsible for the low voltage networks. Due to limited capacity and lack of adequate funds at the local level, the bulk of the low voltage networks in rural areas are poorly designed and not properly maintained. Therefore, planned rural electrification program will require rehabilitation of existing electricity networks as a precursor.
The government's RE program in 26 provinces will be undertaken by EVN and in the other 22 provinces will be undertaken by the respective PPCs. The specific RE program targets for 2016-2020 are: (i) on-grid electrification and service improvement for around 1.1 million households; (ii) off-grid electrification for 21,000 households; and (iii) supply of electricity for irrigation pumps benefiting 22,000 households in the Mekong Delta area. It is estimated that a total investment of VND33,013 billion ($1.5 billion) is needed to achieve these targets. Sufficient electricity supply for rural electrification is ensured. In 2014, total installed generation capacity of was more than above 34,000 MW and peak demand around 22,000 MW. The proposed project will finance a portion of the government's overall RE program.
As the proposed project is a high priority, the government has requested the Asian Development Bank (ADB) to provide a project loan to support rural electrification in Viet Nam. The remaining un-electrified villages are mainly in isolated mountainous areas posing significant access challenges. The consumption rate of electricity and the corresponding revenue from electricity sales in remote areas is low whereas the capital investment required is high. Therefore, ADB's support for the government's rural electrification program will help provide access to electricity and socioeconomic opportunities.
The proposed project is aligned with the Country Partnership Strategy for Viet Nam (2012 -2015) which supports inclusive and environmentally sustainable growth. By increasing reliable electricity supply to rural areas, the proposed project will contribute to inclusive and socioeconomic growth. The project is included in the Country Operations Business Plan (2015 -2017) and is also consistent with the draft Viet Nam Energy Sector Assessment, Strategy and Roadmap.
|Description of Outcome|
|Progress Toward Outcome|
|Description of Project Outputs|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The stakeholders will be consulted through meetings, interviews and surveys in order to increase awareness about the project and seek inputs to the proposed project. Consultation with the poor, vulnerable, and excluded groups will focus on issues associated with environment, involuntary resettlement, if any, and other social issues that may affect them.|
|During Project Implementation|
|Consulting Services||The PPTA will require a team of key experts, supplemented by other international and local experts for specific inputs. The consulting firm shall provide services of experts for minimum 55 person-months, which shall include minimum 27 person-months of international experts' services. However, consultant engagement is on hold until the government confirms that the ensuing investment project is pushing through.|
|Procurement||Procurement of equipment (computer, photocopier/printer/scanner, x-y color plotter) will be in accordance with ADB Procurement Guidelines (2015, as amended from time to time).|
|Responsible ADB Officer||Choon Sik Jung|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Energy Division, SERD|
Ministry of Industry and Trade
54 Hai Ba Trung St.
Hanoi, Viet Nam Viet Nam Electricity
69 Dinh Tien Hoang Street
Hanoi, Viet Nam
|Last Review Mission||-|
|Last PDS Update||26 Mar 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|04 Dec 2015||16 May 2017||16 May 2017||30 Apr 2018||30 Apr 2019||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,000,000.00||0.00||0.00||0.00||0.00||0.00||1,000,000.00||04 Dec 2015||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.
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|Title||Document Type||Document Date|
|Rural Electrification: Project Preparatory Technical Assistance Report||Project Preparatory Technical Assistance Reports||Jan 2016|
|Rural Electrification: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Dec 2015|
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.
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Evaluation Documents See also: Independent Evaluation
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