On February 14, 2023 in Hanoi, Vietnam Electricity (EVN) and Vietnam Bank for Agriculture and Rural Development (AGRIBANK) held the signing ceremony of a credit contract worth VND 2,400 billion for the Ialy Hydropower Plant Expansion Project (IHPEP).
Attending the Credit Contract Signing Ceremony were Mr. Ho Sy Hung - Vice Chairman of the Committee for Management of State Capital at Enterprises, representatives of agencies: Ministry of Industry and Trade, Department of Energy - Capital Management Committee. On the side of Vietnam Bank for Agriculture and Rural Development, there were Mr. Pham Duc An - Chairman of the Members' Council, Mr. Pham Toan Vuong - General Director. On the side of the Vietnam Electricity, there were Mr. Duong Quang Thanh - Chairman of the Members' Council; Mr. Tran Dinh Nhan - General Director. Attending the signing ceremony were members of the Board of Directors, Deputy General Directors, representatives of departments of AGRIBANK and EVN, Executives of Power Project Management Board No.2.
IHPEP has been approved by the Prime Minister for investment policy; The Commission for Management of State Capital at Enterprises approved the Feasibility Study Report for EVN to decide on investment; EVN has assigned Power Project Management Board No. 2 to be the representative of the investor. The project includes 2 units with a total installed capacity of 360MW, the total investment is about VND 6,398 billion. Funding for the project implementation consists of 30% of EVN's counterpart capital and the remaining 70% is arranged from credit loans from AGRIBANK and the Agency for French Development (AFD).
Financing credit from AGRIBANK for the Ialy Hydropower expansion project is worth VND 2400 billion with a maximal loan term of 168 months. Previously, in mid-2021, EVN and AFD also signed a preferential credit loan without a government guarantee worth EUR 74.7 million (equivalent to about VND 1,900 billion).
IHPEP and other expansion hydropower projects are part of EVN's sustainable and green energy development strategy, thereby not only increasing EVN's hydropower capacity but also enhancing the sustainability and efficiency of the power system in the context of a very strong renewable energy development in the Central region.
In the past 2 years, despite being adversely affected by the COVID-19 epidemic and the price of raw materials and fuel, the price increased dramatically compared to the time of bidding, with the great efforts of the investor, the constructionu and supervising units, the expansion of the Ialy hydroelectric power plant project has ensured the progress, and many items are 1 to 3 months ahead of schedule compared to the approved plan.
Currently, EVN and the Power Project Management Board 2 coordinate with the contractor consortium to ensure the progress and quality of the work, to develop the project. implement the HSE (health - safety - environment) management system, strictly follow the control procedures to minimize the impact on the social environment during the project construction process.
Once completed, the project will bring the following effects: increasing the capacity to mobilize the capacity for load in the southern region, especially during the peak hours; contributing to improving the working mode of the power system (increasing the source and peak power of the load graph, increasing operational flexibility, increasing the reliability and safety factor, and so on), thereby contributing to reducing annual fuel costs, reducing greenhouse gas emissions. By making full use of the flow capacity by limiting the annual discharge, it will increase the average annual power generation output by about 233.2 million kWh, helping to replace power production from fossil fuels, contributing to a reduction in annual fuel cost, as well as greenhouse gas emission. In addition, when put into operation, the project also effectively reduces the working intensity of existing units, thereby extending the lifespan of the equipment, saving maintenance and repair costs.
Ialy Hydropower Plant Expansion Project:
Investor: Vietnam Electricity
Representative of the investor to manage and operate the project: Power Project Management Board No. 2
Construction site: Ya Tang commune, Sa Thay district, Kon Tum province and Ia Mo Nong commune, Ia Kreng commune, Ialy town, Chu Pah district, Gia Lai province.
Design consultancy unit: Power Engineering Consulting Joint Stock Company No.1
Total investment: About VND 6,398,630 billion
Generating unit 1: Quarter II/2024; Generating unit 2: Quarter III/2024;
Completion of the project: December 2024.
Communication Department - Vietnam Electricity;
Address: No. 11, Cua Bac Street, Truc Bach Ward, Ba Dinh District - Hanoi;