Accessing ‘efficiency of 'transmission power grid' funding by World Bank capital in Vietnam

The IEG delegation interviewed the staff of the substation.

The IEG team worked with the Ministry of Industry and Trade (MOIT) - the TEP project management agency, the National Load Dispatch Center (NLDC), EVNNPT, the units carrying TEP and localities where TEP passing and the peoples directly come in for benefit/affection from the TEP.

The task of the IEG team is to access the implementing results of the TEP compared to the original design and the objective to consider:

1/ The WB's contributions and support in the development of Vietnam, demonstrating the efficiency of the disbursed capital part and accessing the WB's continuous efforts to improve lending quality and activities operations lending.

2/ Shortcomings that need to be overcome, the experience lessons learned to apply to future projects.

After working with MOIT and NLDC the team worked with the corporations, the functional departments of EVNNPT, as well as the units assigned to implement TEP.

The contents started by the team for accessing and discussing with the EVNNPT include:

Firstly: Difficulties and obstacles in the process to implement TEP and the solutions to overcome them.

Secondly: The main reasons for EVNNPT to successfully and efficiently implement the TEP.

Thirdly: The lessons collected during TEP implementation.

Fourthly: The goals, plans and demands of EVNNPT for the next funds of WB in the coming time.

In this accession program, the IEG team worked with the units, implementing TEP and had a field trip to a number of substations and transmission lines built and completed in the TEP, including The West Hanoi 500 kV transformer, Hoa Binh - West Hanoi and Quang Ngai- Quy Nhon 220 kV transmission lines, Tan Uyen and Phu Lam 500 kV transformer substations, Phuoc An 220 kV transformer substation.

In general, the TEP accessed by WB and EVNNPT as the most successful among ODA projects in terms of loan value (USD 500 million from the WB) with a large number of sub-projects (24 sub-projects) and Time to implement procedures for the rapid loan signing (14 months).

The project ended with a high level of overall results, fulfilling all the plan goals and saving implementation costs (approximately $160 million) due to efficiency in planning, bidding and managing the contracts of the project management units.

In working with the units implementing TEP and going to the field, the IEG team has the initial assessment that the TEP efficiently and successfully implemented and achieved all the initial plan goals, the sub-projects are currently under good operation, contributing to the power capacity and electricity transmission on the power transmission system of Vietnam.

At the end of the mission, the IEG team will complete a detailed assessment report, including strengths, weaknesses, and recommendations for improvement to

send them to the related parties to consider and apply for ODA loan projects in the future.

The TEP with a total loan of 500 million USD from the World Bank. The project loan agreement was signed on November 12, 2014, and terminated on December 31, 2021 (after being extended for 2 years). The project objective is to enhance the technical and operational efficiency of EVNNPT in providing reliable, efficient, and cost-effective power transmission services in Vietnam.

The project consists of 3 components:

- Component 1: Building the transmission grid investment system.

- Component 2: Development of smart grid.

- Component 3: Capacity building and institutional strengthening.

The main results of the project include:

- New construction of power transmission infrastructure, including lines and substations at voltages of 220 kV and 500 kV in areas of Hanoi and Ho Chi Minh City, Central Region, and Mekong Delta.

- The protection and control systems of 5 existing 500 kV and 11 existing 220 kV transformer substations are modernized, integrated with computers and used optical cable systems, replacing intermediate relays in the current old transformer substations by the new generation digital relays and installing a computer control system instead of the old traditional technology.

- The managerial, financial, and technical capacity of EVNNPT has been improved.