PLANNING OF ELECTRICITY OF VIETNAM  (EVN)

To ensure safety in supplying power serving for socio-economic development of the country in modernization and industrialization as pursuant to Resolution of the 9^th Communist Party Congress, Electricity of Viet Nam is urgently pushing up investment in power networks by an annual investment of more than 2,000 projects with the average invested capital of more than 1 billion US dollars per year. In fact, in 2001 and in the first quarter of 2002, as the economic growth rate was high, the increasing rate of load reached 15% higher than estimation shown in the approved General Scheme V, with an average increase of 13% per year. Therefore, Electricity of Viet Nam is proceeding to re-determine the load increasing rate, in the meantime pushing up investments for power sources and networks. Electricity of Viet Nam is pleased to report on the implementation of critical power source projects as follows:

A.    DEVELOPMENT STATUS OF POWER LOADS
B.    STATUS OF INVESTMENT PREPARATION FOR POWER SOURCE AND NETWORK PROJECTS
C.    POWER SOURCE PROJECTS ESTIMATED TO BE COMMISSIONED IN 2003-2004

| Home | Main | Feedback | 

A.     DEVELOPMENT STATUS OF POWER LOADS:

Based on socio-economic and power load development status of 2001 and the beginning of 2002 and on the improvement of implementation schedule on construction investment of Electricity of Viet Nam, the increasing rate of power load is estimated as high as 15% per annum in the period of 2001-2005 and 13% per annum in the period of 2006-2010, specifically as follows:

-         Demand of electricity sales in 2005 is 45,041 billion kWh and in 2010 82,985 billion kWh, demand for production is respectively 53,438 – 96,125 billion kWh. The above demand exceeds 3.4 billion kWh for 2005 and 16.2 billion kWh for 2010 as compared to the approved option of high load in General Scheme V.

-         The total demand increases from 6,430 MW in 2002 to 9,620 MW in 2005, and needs 16,910 MW until 2010. By comparison with current power source capacity of 7,050 MW, it is needed an additional of 2,850 MW for the period of 2002-2005 at an average of 700 MW per year, and more than 1,200 MW per year for the period of 2006-2010. The total increased value of electricity is only equivalent with power rate without reserved capacity for 2005 and 5% of reserved capacity for 2010. So, to ensure a safe and stable operation of power networks, it is needed an increase of 800-1,000 MW per annum for the period of 2002-2005 and accordingly 1,300-1,500 MW per annum for 2006-2010. 

At present, EVN is constructing Thermal Phu My 2.1 Project to put into operation in March 2003 and to buy electricity from BOT projects under construction such as Can Don Hydropower by the end of 2003 (72 MW), Phu My 3 Power Plant (720 MW) which is estimated running in 2003. Besides, the capital for Phu My 2.2 BOT Project is considered,  so it is difficult to implement timely as scheduled.

To satisfy electricity demand in the period of 2003-2010, EVN is concentrating in commencing construction of 7 power source projects in 2002, and the beginning of 2003 such as :

-         Phu My 4 Power Plant Project with capacity of 450 MW, is estimated to start construction in April 2002 and putting into operation two TBK cells 2 x 150 MW in September 2003.

-         Uong Bi Expanded Power Plant is estimated to start construction in May 2002 and putting into operation in 2006.

-         O Mon Power Plant is estimated to put into operation in 2006.

-         Phu My 2.1 Expanded Thermal Power Plant is estimated to put into operation in 2005.

-         Se San 3 Power Plant is estimated to put into operation in 2007.

-         Dai Ninh Power Plant is estimated to put into operation in 2007.

-         Na Hang Power Plant is estimated to put into operation in 2008.

And projects being urgently carried out for investment procedures including:

-         Thermal Power Plant Hai Phong.

-         Thermal Power Plant Uong Bi Expanded.

-         Thermal Power Plant Quang Ninh (Lang Bang or Hoanh Bo).

-         Thermal Power Plant O Mon 2.

-         Hydropower Plants Ban La, Dak Mi 4, Ha Song Ba, Song Tranh 2, Song Con, Dakdrinh…

Vietnam Oil & Gas General Company is carrying out the project of Ca Mau gas turbine Power Plant, according to the approval of the Government Prime Minister, estimated to put into operation in December 2005, but in fact it is not clear.

With the capacity of power sources putting into operation in 2001 and of power plants being carried out as mentioned above, up to 2005, it is required 5 more power plants to be put into operation with total capacity of 1,642 MW (Na Duong 100MW, Can Don 72MW, under Phu My 2.1 and 2.1 expanded 300MW, Phu My 4 with capacity of 450MW and BOT Phu My 3 with capacity of 720MW). So, up to 2005, if there are more O Mon 300MW Power Plant, Ca Mau 720MW, Uong Bi Expanded 300MW to put into operation (on the condition that the approval for procedures meets the progress schedule), the reserved rate reaches only at 3% equivalent to one 300MW cell of Pha Lai 2 Power Plant. Therefore, in the period of 2003-2010, if not pushing up the progress of being invested power source projects, there could be a shortage of electricity. Specifically as follows:

-         In case the BOT Phu My 2.2 Power Plant is put into operation in 2005 and other power plants are put into operation as estimated, the relation of demand and supply of the system for the rainy season in 2005 is almost approximate, the system still locally lacks electricity, especially when the water level is low (highest deficiency of 200 million kWh of productivity in 2005 is equivalent to deficient capacity of 130MW).

-         In case there is not Phu My 2.2, in 2005, the system will lack of 500MW in the rainy season.

-         In case Phu My 2.2 and Phu My 4 are put into operation 1 year late, then in 2004, there will be short of capacity and the highest shortage of electricity in 2005 will be then 1.3 billion kWh of productivity.

-         In case there is not Phu My 2.2 and Phu My 4 and expanded Uong Bi are put into operation late, then even in the dry season, when hydropower plants supply at high capacity, the system is still deficient in capacity and electricity, and this deficiency will extend over the end of 2005.

-         If there is O Mon power plant putting into operation, then there will have a deficiency of 10% of capacity in 2006.

In any case, during the period of 2003-2005, there would have possibility of local deficiency of electricity, saving use of electricity is more and more important.

Therefore, the major issue for power source in the period of 2002-2005 is to ensure the schedule of investment procedures for the above-mentioned projects. In the meantime, it should be quickly to start construction of power source projects to reserve for the period of 2006-2010. The second issue is the balance and seeking funds for project investment.

As for power network, the implementation schedule of power works to ensure reliability and quality of electricity supply for socio-economic development of the localities is also a critical  requirement, but many obstacles, difficulties need be settled.

 B.    STATUS OF INVESTMENT PREPARATION FOR POWER SOURCE AND NETWORK PROJECTS

I.                    MAJOR PROJECTS ESTIMATED TO START CONSTRUCTION IN 2002-2003:

Major projects which will start construction in 2002-2003 are: Uong Bi Expanded Power Plant, Se San 3 Power Plant, Dai Ninh Power Plant, Phu My 4 Power Plant, O Mon Power Plant, Expanded thermal Phu My 2.1 Power Plant, Rehabilitation Da Nhim… With the assistance of Planning & Investment Ministry, the investment procedures of these projects have been basically completed, such as: FS Na Hang Power Plant was approved on April 19, 2002, Dai Ninh Hydropower Plant was approved for bidding plan in February 2002… Though, there are some small difficulties, EVN would like to ask for the assistance of Planning & Investment Ministry to start construction soon in accordance with plan, specifically as follows:

-         For Bidding Plan of the Se San 3 Hydropower Plant project, EVN submitted on March 25, 2002 and supplemented a clarification on April 26, 2002 according to the conclusion of Ministry at the evaluation meeting on April 05, 2002, it is suggested to the Ministry to approve in May 2002.

-         For the tendering packages of steel poles, insulators and accessories, conductor cables for 500kV Phu Lam-Pleiku 2^nd Circuit, in which the tendering package of steel poles provision has been clarified by EVN on April 15, 2002 according to the conclusion of Ministry at the evaluation meeting on April 10, 2002. Because this package is urgent to ensure providing poles for construction units, so it is suggested to the Ministry to approve soon.

-         For bidding result of Phu My 4 Power Plant, EVN had a clarification letter on April 16, 2002. This project plays an important role in ensuring the obligations of Vietnam in gas consumption of Nam Con Son Project, in the meantime, ensuring power source for 2004. It is suggested to the Ministry to submit soon to the Government Prime Minister for approval.

-         For result of appointing consultant for the second phase of O Mon Power Plant, the Ministry has agreed to submit to the Government Prime Minister, EVN did not  have to supplement. It is suggested to the Ministry to submit soon to the Government Prime Minister.

-         For Bidding Plan of Dai Ninh Hydropower Plant, Phase 3, EVN submitted it on April 12, 2002, in which there is a package of moving Da Nhim-Long Binh 220kV transmission line need to be implemented soon, it is suggested the Ministry to consider for organizing the evaluation meeting.

-         The bidding result of Phu My-Nha Be-Phu Lam 500kV Transmission Line construction packaged was evaluated by the Ministry on April 26, 2002, EVN did not supplement it, so it is suggested to the Ministry to approve soon.

-         For the project of Son La-Muong Bu, under items for preparation of Son La Hydropower Plant Project, EVN submitted to the Ministry for approval of bid appointment on April 26, 2002.

-         For Hai Phong 600MW Thermal Power Plant, EVN submitted it in January 2002. The project plays an important role to ensure electricity supply in 2006-2007 for Northern regions. The Planning & Investment Ministry hold a meeting in April and requested to supplement. EVN will supplement it on May 06, 2002. After EVN submitted the supplement, it is suggested to the Planning & Investment Ministry to consider and submit to the Government Prime Minister for soon approval.

-         For Project of Upgrading Pha Lai 1 Thermal Power Plant, EVN submitted it in February 2002. It is suggested to the Ministry to approve soon so that EVN has a basis to work with JBIC to loan the remaining capital of Pha Lai 2 Project.

-         For Pleiku-Dung Quat-Da Nang 500kV Transmission line and Dung Quat 500kV Sub-station: This project has an important meaning in the transmission of capacity load and electricity from the Central and Southern regions to Northern regions in the period of 2005-2007 (if there is not this transmission line, the power network of Northern regions will be short of about 250-700MW by the end of 2005 – beginning of 2006, while projects in Northern regions haven’t come yet). In the meantime, this project has been put into WB loan in SEIER project, and estimated to have a meeting for contract negotiation on May 12, 2002. Therefore, it is suggested to the Planning & Investment Ministry to submit to the Government for soon approval of project feasibility study report to carry out next procedures in order to put the project into operation by early 2006. On other hand, EVN submitted SEIER Project since March 2002, so the FS completion of  this transmission line is also an important task to complete project document according to the Ministry’s  instruction.

Besides, to ensure investment progress of power source projects for period of 2006-2010, EVN has tensely carried out power source projects as described in details in the attached appendix showing the estimated completion progress for preparation and approval of each project.

 POWER SOURCE PROJECTS ESTIMATED TO BE COMMISSIONED IN 2003-2004, AND BEING SUBMITTED FOR APPROVAL OF INVESTMENT PROCEDURES:

Implementing status of submitted projects:

No	Project	Date of Submission	Official Letter No.
1	Rao Quan Hydropower Plant
	Submit the pre-feasibility study report	13/10/1999	319EVN/HDQT-TD
	Submit Supplementation for pre-feasibility study report.	05/07/2000	168EVN/HDQT-TD
	Supplement cost estimate of feasibility study report	19/03/2002	1177/CV-EVN-TD
2	Thuong Kontum Hydropower Plant
	Submit pre-feasibility study report	25/02/2002	750/TTr-EVN-HDQT-TD
	Report to Prime Minister on pre-feasibility study report	26/04/2002	1799/CV-EVN-TD
3	Pleikrong Hydropower Plant
	Submit pre-feasibility study report	12/11/2001	324EVN/HDQT-TD
	Submit investment funds report	28/12/2001	7124/CV-EVN-TD
	Supplement pre-feasibility study report	07/02/2002	607/CV-EVN-TD
4	SeSan 4 Hydropower Plant
	Submit pre-feasibility study report	10/01/2000	08EVN/HDQT-TD
	Supplement pre-feasibility study report	24/12/20001	373EVN/HDQT-TD
	Supplement pre-feasibility study report	23/04/2002	1714/ CV-EVN-TD
	Planning & Investment Ministry report to Prime Minister
5	Kanak-An Khe Hydropower Plant
	Submit pre-feasibility study report	26/02/2002	764/TTr-EVN-HDQT-TD
6	Dong Nai 3+4 Hydropower Plant
	Submit feasibility study report	26/03/2001	80EVN/HDQT-TD
	Supplement feasibility study report	6/9/2001	4954/EVN-TD
	Supplement feasibility study report	24/12/2001	373EVN-HDQT-TD
	Additional clarification for feasibility study report	23/04/2002	1714/ CV-EVN-TD
	Planning & Investment Ministry report to Prime Minister	05/04/2002

Specifically some projects are as follows:

1. Rao Quan Hydropower Plant : The Government Office has notified the directional ideas of the Government Prime Minister on assigning the employers and funds for the projects. EVN had an official letter No. 1117/CV-EVN-TD dated March 19, 2002 on adjusting Cost estimate and petition of obligation allocation of project implementation between EVN and Ministry of Agriculture & Rural Development. Ministry of Industry and Ministry of Agriculture & Rural Development had ideas concerning the project. This project has enough conditions for FS approval, it is suggested to Planning & Investment Ministry to submit to the Government for approval.

2. Thuong Kontum Hydropower Plant : Based on the report of Planning & Investment Ministry to the Government about the project, EVN had an official letter No. 1799/CV-EVN-TD dated April 26, 2002 reporting to the Prime Minister.