Funding sponsors make risks assessment of the Bac Ai Pumped Storage Hydropower Project

A delegation from funding sponsors, including the French Development Agency (AFD), the Export-Import Commercial Bank of Vietnam (EIB), the Japan International Cooperation Agency (JICA), and the KfW Development Bank of Germany (KfW), visited Ninh Thuan to conduct on-site inspections for the Bac Ai Pumped Storage Hydropower Project. Some experts from the funding sponsors participated online via Zoom meetings to evaluate project risks and appraise the project to facilitate the loan proposal.

This joint working trip marked the first time the funding sponsors visited the project site for firsthand understanding. It provided an overall perspective, detailed assessment, and appraisal of the project, preparing for the decision on funding (including the loan amount and critical conditions of the non-sovereign-guaranteed loan, which is being implemented as a co-financing arrangement).

Representatives from EVN’s International Relations Department, Investment Management Department, along with the Power Project Management Board 3 (EVNPMB 3) and Power Engineering Consulting Joint Stock Company 4 (EVNPECC4) held meetings with the delegation and conducted on-site inspections at the lower reservoir area, spillway complex, ancillary campsite area, and surveyed the location of the construction and operation route VH2A.

The Bac Ai Pumped Storage Hydropower Project is included in the power source project portfolio of the Power Development Plan VII (adjusted). The project holds significant importance for the national power system, particularly in integrating various renewable energy plants (solar, wind) with low stability into the power system. The project's main objective is to supply electricity during peak load hours and contribute to the smoothing of load curves by utilizing pumping capacity during off-peak hours and generating electricity during peak hours.

The Bac Ai Pumped Storage Hydropower Project has an installed capacity of 1,200 MW and employs state-of-the-art integrated pump-turbine and reversible motor-generator technology. The project utilizes water from the Cai River reservoir within the Tan My irrigation system as the lower reservoir. Water is pumped from the lower reservoir to the upper reservoir to generate electricity through two parallel tunnels with variable diameters ranging from 5.5m to 7.5m, with a total length of over 2,700m for each tunnel.

The project is divided into two investment phases:

Phase 1: Construction of the fully submerged spillway complex within the Cai River reservoir (the lower reservoir of the Bac Ai Pumped Storage Hydropower Project). The construction of the spillway complex commenced on January 6, 2020, and was completed and put into operation on March 4, 2021, meeting the schedule for reservoir water accumulation of the Cai River reservoir, which is part of the Tan My irrigation system under the supervision of the Ministry of Agriculture and Rural Development.

Phase 2: The remaining major works and associated facilities. Currently, the technical design and construction estimate for Phase 2 is undergoing evaluation by the Ministry of Industry and Trade, with the expectation of approving the technical design for Phase 2 by the end of 2022.

Regarding compensation and land clearance, EVNPMB3, in coordination with EVNPECC4, have completed the demarcation of project boundaries to hand over to the relevant authorities of Bac Ai district, Ninh Son district, and the communes where the project is located, in preparation for the implementation of compensation and land clearance activities according to current regulations.

The interest of funding organizations in the priority power projects and grid of EVN, in general, and the Bac Ai Pumped Storage Hydropower Project, in particular, provides favorable conditions to accelerate the project's implementation and ensure the set timeline.

According to the planned construction schedule (estimated): The Bac Ai Pumped Storage Hydropower Project will proceed with the construction of works to facilitate construction in the first quarter of 2023, commence the construction of the main works in the first quarter of 2024, and complete the project in the fourth quarter of 2030.

Source: nangluongvietnam.vn