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Vietnam

My Ly and Nam Mo 1 Hydropower Plants

$900 million
Power
SPG
Proposed
hydropower plant surrounded by trees

Project Facts

Project Facts

Project Facts

vietnam
Strategic Priority Area
Energy efficiency and climate change
Guarantee Holder
Goldman Sachs (Asia) LLC
Investor Country
China
Environmental Category
A
Date SPG Disclosed
December 22, 2017
Projected Board Date
December 22, 2017
Project Type
Non-SIP

--This SPG was updated on March 13, 2018 in order to add the Environmental and Social Impact Assessment Annexes.

This summary covers a potential non-shareholder loan from lenders yet-to-be-identified for My Ly Nam Mo Hydropower Joint Stock Company. The loan would be guaranteed by the Ministry of Finance acting for and on behalf of the Government of Vietnam to support the construction of the My Ly and Nam Mo 1 hydropower plants in Vietnam. The arranger has applied for a MIGA guarantee of up to $900 million for a period of up to 19 years against the risk of non-honoring of sovereign financial obligations.

The Projects involve the construction and operation of (i) the My Ly hydropower plant on the main course of the Ca River located in My Ly commune, with an installed capacity of 180 MW; and (ii) the Nam Mo 1 hydropower plant on the Nam Mo River located in Ta Ca commune, with an installed capacity of 90 MW. Both communes are within the Ky Son district of Nghe An Province in Vietnam. While the main power generation facilities will be located in Vietnam (powerhouse, head and tailrace tunnels, switchyard, substation, etc.), the water reservoirs and dam structures will overlap both Vietnam and Lao PDR. The electricity produced by the projects will be delivered to the Vietnam national grid via two transmission lines (80km of 220 kV) running from Ban Ve commune, Nghe An Province to both power plants. An offtake arrangement in the form a Power Purchase Agreement (PPA) is expected to be signed between the My Ly Nam Mo Hydropower Joint Stock Company and Vietnam’s national utility company, Vietnam Electricity (EVN) for the purchase of electricity on a take-or-pay basis.

Information on this project is being disclosed under the early disclosure procedures outlined in MIGA’s Access to Information Policy.

Environmental Categorization

The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. To view the Environmental and Social Impact Assessments and Executive Summaries click on the links below:

MLHPP Vol. 10 Exececutive Summary Oct. 27, 2017

MLHPP Vol. 1 Environmental and Social Impact Assessment, Oct. 30, 2017

NM1HPP Vol. 10 Executive Summary, Oct. 27, 2017

NM1HPP Vol. 1 Environmental and Social Impact Assessment, Oct. 30, 2017

 

Environmental and Social Imact Assesment Annexes

To view the Environmental and Social Impact Assessment Annexes, click on the links below:

MLHPP Vol 2 Agreements, Sep. 29, 2017

MLHPP Vol 3 Social Baseline, Sep. 29, 2017

MLHPP Vol 4 Communication, Sep. 29, 2017

MLHPP Vol 5 PCDP, Sep. 29, 2017

MLHPP Vol 6 REMLRP, Sep. 29, 2017

MLHPP Vol 7 ESMP, Sep. 29, 2017

NM1HPP Vol 2 Agreements, Sep. 29, 2017

NM1HPP Vol 3 Social Baseline, Sep. 29, 2017

NM1HPP Vol 4 Communication, Sep. 29, 2017

NM1HPP Vol 5 PCDP, Sep. 29, 2017

NM1HPP Vol 6 REMLRP, Sep. 29, 2017

NM1HPP Vol 7 ESMP, Sep. 29, 2017

 

Development Impact

The Projects will generally respond to growing electricity demand in both countries, notably in Vietnam, which is expected to double between 2014 and 2020. The projects are expected to provide improved quality and efficiency of power generation services.

The projects are aligned with the World Bank Group infrastructure strategy for Vietnam and Lao PDR, a pillar of which is a reduction of the countries’ carbon footprint through the support of renewable energy, energy efficiency, and cleaner technology options for urban infrastructure. It is also aligned with MIGA’s strategic priority of supporting investments in the area of climate change.