Co-financiers of Bac Ai Pumped Storage Hydropower Plant Project conduct project appraisal

On October 16, in Hanoi, Mr. Nguyen Xuan Nam - EVN Deputy General Director worked with the co-financiers delegation of the Bac Ai Pumped Storage Hydropower Plant Project. This was the first working session in the sponsor group’s project appraisal program.

The sponsor group includes representatives from French Development Agency (AFD), German Development Bank (KfW), Japan International Cooperation Agency (JICA), European Investment Bank (EIB).

This is a joint working trip of the sponsors to conduct a site visit in order to clarify the relevant viewpoints and contents of the Bac Ai Pumped Storage Hydropower Plant Project, discuss the draft Term Sheet and enhance coordination among the co-financiers. 

Mr. Nguyen Xuan Nam - EVN Deputy General Director emphasized that this is EVN's first pumped storage hydropower project, contributing to Vietnam's commitment realization at COP26. Mr. Nguyen Xuan Nam hoped the sponsor group will actively coordinate with EVN's specialized departments to complete the project appraisal on schedule.

On behalf of the sponsor group, Mr. Hugo Pierrel - AFD Vietnam Deputy Director thanked Vietnam Electricity for actively coordinating and fulfilling commitments in preparing for project appraisal. During the appraisal, the sponsor group will work seriously, objectively and complete this important project's appraisal on time.

At the meeting, the sponsor group and specialized departments, Power Projects Management Board 3 (EVNPMB3) and Power Engineering Consulting Joint Stock Company 4 (EVNPECC4) exchanged information related to the project appraisal.

According to the plan, from October 16-20, the working team will conduct technical and financial-economic project appraisal. This is a necessary step for the co-financiers to make a lending decision to the project.

The Bac Ai Pumped Storage Hydropower Plant Project is included in the list of power sources projects approved by the Prime Minister in Decision No. 428/QD-TTg dated March 18, 2016 on approving the adjustment of the National Power Development Plan for 2011-2020 period with vision to 2030 (adjusted Power Plan VII).

The project is of great importance to the national power system, especially in the context where many renewable energy power plants (solar, wind power) have been put into operation in the power system. The main task is to generate power to cover the peak load of the system, helping reduce the gap (flatten the load curve) by mobilizing pumping capacity during off-peak hours and generating electricity during peak hours.