26 November 2012
World Bank Supports First Hydropower Project in Viet Nam
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The World Bank project loan for the 1,000GWh Trung Son Hydropower Project (TSHPP) amounts to US$330 million and will be the Bank's first hydropower project in Viet Nam.

World Bank20 November: The World Bank has announced a project loan for the 1,000GWh Trung Son Hydropower Project (TSHPP), which amounts to US$330 million. It will be the Bank’s first hydropower project in Viet Nam.

Using water from the Ma River, the medium-size Trung Son Hydropower Project (TSHPP) is located in northwestern Viet Nam, with the plant in the territory of Trung Son commune, Thanh Hoa province. The project aims to add more than 1,000GWh of electricity per year. Growing at an annual rate of 15%, electricity consumption in Viet Nam is challenging, the World Bank notes. In order to meet the needs of the country’s Gross Domestic Product (GDP) growth of around 7% for the last decade, the Government has set the goal of increasing total electricity generating capacity to 39GW by 2020, compared to 15.8GW in 2008.

TSHPP is the first hydropower project in Viet Nam approved by the World Bank Board of Executive Directors under International Bank for Reconstruction and Development (IBRD) lending conditions. In this regard, the project could function as a model for sustainable practices in future projects.

The project will be implemented by the Trung Son Hydropower Company (TSHPCo), a unit under Vietnam Electricity (EVN). Support for equipment, civil works and technical assistance are included in the loan.

Included in the cost of the project are provisions to offer improved housing and living conditions for the 2,000 people who must be relocated as a result of the project, as well as livelihood restoration for the 7,000 people whose income is affected, and the creation of biodiversity reserves. In addition to providing energy at an affordable cost, the project will avoid 1 million tons of carbon dioxide (CO2) emissions per year in Viet Nam. [World Bank press release]