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PROJECT DATA SHEET

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.

PDS Creation Date

24 Mar 2008

PDS Updated as of

07 Nov 2012

Project Name

Mong Duong 1 Thermal Power Project - Project 1

Country

Viet Nam

Project/Program Number

39595-023

Status

Approved

Geographical Location

Northern Vietnam

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Sector and/or Subsector Classification

Energy / Conventional Energy

Thematic Classification

Economic growth

Gender Mainstreaming Categories

FINANCING
Type/Modality of Assistance Loan TOTAL Approval Number 2353 Source of Funding Ordinary capital resources Counterpart Approved Amount (US$ thousand) 27,860 16,150 US$ 44,010

SAFEGUARD CATEGORIES
For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment

Involuntary Resettlement

A Indigenous Peoples C

SUMMARY OF ENVIRONMENTAL AND SOCIAL ISSUES


The environmental impact assessment (EIA) conducted for Mong Duong 1 has identified and thoroughly assessed the anticipated project impacts on the physical, biological, and social aspects during the pre-construction, construction, and operation phases. Alternatives pertaining to different project aspects were also examined. An environmental management plan (EMP) has been developed, which includes (i) mitigation measures; (ii) monitoring program, (iii) associated costs based on a 5-year pre-construction/construction period and 30 years of operation; and (iv) clear definition of implementation responsibilities. Land acquisition requirements have been minimized by locating the thermal power plant on a site at the mouth of the Mong Duong River. The area is already in use for coal transport and storage. Based on preliminary design available, it was estimated that 40 households, 10 companies, 390 farm/company workers, and 13 fisherfolks will experience resettlement impacts and will have to be compensated and assisted. A full Resettlement Plan (RP) was prepared and the full RP have been updated following detailed design. Environmental Aspects Involuntary Resettlement Indigenous Peoples

STAKEHOLDER COMMUNICATION, PARTICIPATION, AND CONSULTATION


During Project Design During Project Implementation

DESCRIPTION
The main objective of the proposed project is to expand the generating capacity of Electricity of Viet Nam (EVN) in order to help mitigate shortage of power in Northern Viet Nam and to support industrial and economic growth. The Project provides for the construction of four units of 250 MW circulatory fluidized bed (CFB) generating units and the common facilities for another 1,000 MW to 1,200 MW installed generating capacity utilizing domestic coal as fuel. This constitutes as Phase 1 of the first stage development program envisaged to establish in two phases and increase the generating capacity of this new power station to 2,200 MW. The 2,000 MW Mong Duong Thermal Power Project will a mine mouth based power plant. The Project will include all works and equipment required for the development of 250 MW x 4 units of CFB generating units. The Project will consist of the following components: (a) civil works for site preparation and common works, namely: (b) foundations, the power station building and cooling water circulation and other systems; (c) 250 MW x 4 CFB coal-fired CFB boiler complete with all auxiliaries; (d) two reheat steam turbine generators each with a rated capacity of 500 MW, complete with auxiliaries; (e) instrumentation and control systems; (f) coal and ash handling systems; (g) water treatment and other miscellaneous mechanical plants; (h) transformers, switchyeard equipment and other miscellaneous electricial equipment; and (i) consulting services

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY


The construction of the 1,000 MW Mong Duong 1 thermal power plant , together with site preparation and the common facilities for Mong Duong 2, will provide reliable electricity supply throughout the year in northern Vietnam. The main beneficiaries of the Project will be the industrial, commercial, residential, and rural consumers in northern Vietnam.

DEVELOPMENT IMPACT
Adequate and reliable supply of power to meet Viet Nam's electricity demand in an environmentally sustainable manner. Diversified generation fuel mix.

PROJECT OUTCOME
Description of Outcome Progress Towards Outcome

Households and industries in northern Viet Nam have access to reliable, stable electricity supply

Project is on track.

OUTPUTS AND IMPLEMENTATION PROGRESS


Description of Project Outputs Status of Implementation Progress (Outputs, Activities, and Issues)

Project completed: 1000 MW CFB technology coal-fired All works and services completed. Pending outstanding power plant. Project is completed under Loan 2610-Tranche payment. Loan to close as scheduled. 2: 1000 MW CFB technology coal-fired power plant; Under Tranche 1, Loan 2353: completion of site preparation for turnover to the construction contractors.

BUSINESS OPPORTUNITIES
Date of First Listing 13 Nov 2006

Consulting Services

All consulting services to be financed under the Facility shall be procured in accordance with ADB;s Guidelines on the Use of Consultants by the Asian Development Bank and its Borrowers (2007), as amended from time to time. Consulting services shall be required for (i) reviewing the technical designs and drawing (prepared by EVN); (ii) preparing bidding documents for selection of the EPC contractor and other civil works packages in accordance with ADB tguidelines, to construct MD1 of the Investment Program; (iii) assisting EVN in bid evaluation, contract negotiations with the EPC contractor and other civil works contractor; (iv) supervising the site preparation and leveling works, and civil works; (v) preparing and environmental management plan (EMP), updating the resettlement plan, and supervising the implementation of the EMP and resettlement plan by EVN; (vi) supervising work of the EPC contractor, reviewing operation and maintenance manuals; (vii) preparing completion reports of the EPC package; (viii) capacity building for counterpart staff and other EVN staff in new technology such as circulating fluidized-bed (CBFB) technnlogoy; and (ix) overall project managmeent, procurement, invoicing and paand payments. the services will be provided through consulting firms appointed following international competition using the quality-andcost-based selection (QCBS) method.

Procurement

All equipment and materials to be financed under the MFF shall be procured in accordance with ADB's Procurement Guidelines (2007). International competitive bidding (ICB) shall be used for the engineering, procurement and construction contract of the power plant and common facilities, for supply contracts estimated to cost the equivalent of or more than $1.0 million, and for civil works contracts more

than $3 million. The national competitieittive bidding or limtied international bidding shall be used for supply contracts valued at less than $1.0 million. Civil works contracts estimated at less than $3.0 million shall be procured following NCB procedures acceptable to ADB. Miscellaneous goods and civil works contracts less than $100,000 shall be procured using shopping procedures. Contract packages shall be prpeared to ensure maximum competition under ICB. Contract packages shall be prepared to ensure maximum competition under ICB. The relevant sections of ADB's Anticorruption Policy shall be incorporated in bidding documents for all ADB-financed contracts. Procurement and Consulting Notices http://www.adb.org/projects/39595-023/business-opportunities

TIMETABLE
Concept Clearance 29 Sep 2005

Fact-finding

20 Jun 2006 to 03 Jul 2006

Management Review Meeting

15 Aug 2006

Approval

02 Oct 2007

Last Review Mission

MILESTONES
Closing Approval No. Loan 2353 Approval 02 Oct 2007 Signing 09 Oct 2007 Effectivity Original 27 Mar 2008 30 Jun 2013 Revised Actual

STATUS OF COVENANTS
Covenants are categorized under the following categoriesaudited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactoryall covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactorya maximum of two covenants in the category are not being complied with, (iii) Unsatisfactorythree or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.
Category Approval No. Sector Social Financial Economic Others Safe Project Financial Statements

Loan 2353

Satisfactory

Satisfactory

Satisfactory

Satisfactory

Satisfactory

CONTACTS AND UPDATE DETAILS


Responsible ADB Officer Takafumi Kadono (tkadono@adb.org)

Responsible ADB Department

Southeast Asia Department

Responsible ADB Division

Infrastructure Division, SERD

Executing Agencies

Viet Nam Electricity Mr. Le Duc Chan

LINKS
Project Website http://www.adb.org/projects/39595-023/main

List of Project Documents

http://www.adb.org/projects/39595-023/documents