EU supports Vietnam with 430 million euros to promote the Bac Ai Storage Hydropower Project
15:00 | 10/10/2025
Speaking at the event, High Commissioner Jozef Síkela affirmed that the Bac Ai Hydropower Project is an important foundation in Vietnam-EU energy cooperation, contributing to building a green, stable and sustainable energy system, and promoting private investment attraction and green growth. He emphasized that through the Global Gateway initiative, the EU is realizing its commitments with concrete actions for people, the planet and the common prosperity.
The support package is part of Team Europe, which includes the EU, member states and development finance institutions such as AFD (France), EIB, KfW (Germany), CDP (Italy) and PROPARCO – AFD's private equity arm.
The Bac Ai Storage Hydropower Project is expected to strengthen the stability of the national power system, facilitate the expansion of renewable energy, and contribute to the implementation of Vietnam's commitment to reducing carbon emissions and sustainable development.
According to the Vietnam Energy Magazine, by the end of September 2025, the selection of contractors and site clearance will basically meet the schedule. The main items have achieved many positive results, such as clearing the entire construction road, completing the digging of open foundation pits and digging electric cable tunnels, wind exhaust tunnels beyond the plan.
However, some items, such as the construction tunnel (reaching 22% of the plan) and the VH3A operation tunnel (reaching 4%) are still slow due to heavy rainy weather and complex geology. The Power Project Management Board 3 (EVNPMB3) – a branch of the Electricity of Vietnam (EVN) – has asked the contractor to work overtime, supplement manpower and equipment to ensure the overall progress.
EVNPMB3 is currently supervising the construction with progress management software and a facial recognition camera system, ensuring human resource, quality, safety and environmental control (ESHS). The construction site is maintained safely, without incidents, regularly training and drilling fire protection, natural disaster prevention and control.
In the fourth quarter of 2025, the EVNPMB3 aims to accelerate the construction of VH1, VH2, and VH3A operation routes, complete the downstream tunnel and valve tower, and promote the leveling of the 500 kV distribution station. Electricity and water supply infrastructure items for construction are also being urgently implemented, aiming to complete the plan in 2025.
The Bac Ai Hydropower Project is not only of important technical and economic significance, but also a symbol of green energy cooperation between Vietnam and the European Union, contributing to the realization of the goal of a just and sustainable energy transition./.
