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PROJECT DATA SHEETProject Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress,some information may not be included in its initial version but will be added as it becomes available. Information aboutproposed projects is tentative and indicative.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the AsianDevelopment Bank does not intend to make any judgments as to the legal or other status of any territory or area.

FINANCING

Type/Modality of Assistance Approval Number Source of FundingApproved Amount (US$

thousand)

Loan 2353 Ordinary capital resources 27,860

Counterpart 16,150

TOTAL US$ 44,010

SAFEGUARD CATEGORIESFor more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

PDS Creation Date 24 Mar 2008

PDS Updated as of 07 Nov 2012

Project Name Mong Duong 1 Thermal Power Project - Project 1

Country Viet Nam

Project/Program Number 39595-023

Status Approved

Geographical Location Northern Vietnam

Sector and/or SubsectorClassification

Energy / Conventional Energy

Thematic Classification Economic growth

Gender MainstreamingCategories

Environment A

Involuntary Resettlement

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SUMMARY OF ENVIRONMENTAL AND SOCIAL ISSUES

The environmental impact assessment (EIA) conducted for Mong Duong 1 has identified and thoroughly assessed theanticipated project impacts on the physical, biological, and social aspects during the pre-construction, construction, andoperation phases. Alternatives pertaining to different project aspects were also examined. An environmental managementplan (EMP) has been developed, which includes (i) mitigation measures; (ii) monitoring program, (iii) associated costsbased on a 5-year pre-construction/construction period and 30 years of operation; and (iv) clear definition ofimplementation responsibilities. Land acquisition requirements have been minimized by locating the thermal power planton a site at the mouth of the Mong Duong River. The area is already in use for coal transport and storage. Based onpreliminary design available, it was estimated that 40 households, 10 companies, 390 farm/company workers, and 13fisherfolks will experience resettlement impacts and will have to be compensated and assisted. A full Resettlement Plan(RP) was prepared and the full RP have been updated following detailed design.

STAKEHOLDER COMMUNICATION, PARTICIPATION, AND CONSULTATION

DESCRIPTION

The main objective of the proposed project is to expand the generating capacity of Electricity of Viet Nam (EVN) in orderto help mitigate shortage of power in Northern Viet Nam and to support industrial and economic growth. The Projectprovides for the construction of four units of 250 MW circulatory fluidized bed (CFB) generating units and the commonfacilities for another 1,000 MW to 1,200 MW installed generating capacity utilizing domestic coal as fuel. This constitutesas Phase 1 of the first stage development program envisaged to establish in two phases and increase the generatingcapacity of this new power station to 2,200 MW. The 2,000 MW Mong Duong Thermal Power Project will a mine mouth

based power plant. The Project will include all works and equipment required for the development of 250 MW x 4 units ofCFB generating units. The Project will consist of the following components: (a) civil works for site preparation and commonworks, namely: (b) foundations, the power station building and cooling water circulation and other systems; (c) 250 MW x4 CFB coal-fired CFB boiler complete with all auxiliaries; (d) two reheat steam turbine generators each with a ratedcapacity of 500 MW, complete with auxiliaries; (e) instrumentation and control systems; (f) coal and ash handling systems;(g) water treatment and other miscellaneous mechanical plants; (h) transformers, switchyeard equipment and othermiscellaneous electricial equipment; and (i) consulting services

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

The construction of the 1,000 MW Mong Duong 1 thermal power plant , together with site preparation and the common

facilities for Mong Duong 2, will provide reliable electricity supply throughout the year in northern Vietnam. The mainbeneficiaries of the Project will be the industrial, commercial, residential, and rural consumers in northern Vietnam.

A

Indigenous Peoples C

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

During Project Design

During Project Implementation

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DEVELOPMENT IMPACT

PROJECT OUTCOME

OUTPUTS AND IMPLEMENTATION PROGRESS

BUSINESS OPPORTUNITIES

Adequate and reliable supply of power to meet Viet Nam's electricity demand in anenvironmentally sustainable manner. Diversified generation fuel mix.

Description of Outcome Progress Towards Outcome

Households and industries in northern Viet Nam haveaccess to reliable, stable electricity supply

Project is on track.

Description of Project Outputs Status of Implementation Progress (Outputs, Activities,and Issues)

Project completed: 1000 MW CFB technology coal-firedpower plant. Project is completed under Loan 2610-Tranche2: 1000 MW CFB technology coal-fired power plant; UnderTranche 1, Loan 2353: completion of site preparation forturnover to the construction contractors.

All works and services completed. Pending outstandingpayment. Loan to close as scheduled.

Date of First Listing 13 Nov 2006

Consulting Services All consulting services to be financed under the Facility shall be procured inaccordance with ADB;s Guidelines on the Use of Consultants by the AsianDevelopment Bank and its Borrowers (2007), as amended from time to time.Consulting services shall be required for (i) reviewing the technical designs anddrawing (prepared by EVN); (ii) preparing bidding documents for selection of the EPCcontractor and other civil works packages in accordance with ADB tguidelines, toconstruct MD1 of the Investment Program; (iii) assisting EVN in bid evaluation,contract negotiations with the EPC contractor and other civil works contractor; (iv)supervising the site preparation and leveling works, and civil works; (v) preparing and

environmental management plan (EMP), updating the resettlement plan, andsupervising the implementation of the EMP and resettlement plan by EVN; (vi)supervising work of the EPC contractor, reviewing operation and maintenancemanuals; (vii) preparing completion reports of the EPC package; (viii) capacitybuilding for counterpart staff and other EVN staff in new technology such ascirculating fluidized-bed (CBFB) technnlogoy; and (ix) overall project managmeent,procurement, invoicing and paand payments. the services will be provided throughconsulting firms appointed following international competition using the quality-and-cost-based selection (QCBS) method.

Procurement All equipment and materials to be financed under the MFF shall be procured in

accordance with ADB's Procurement Guidelines (2007). International competitivebidding (ICB) shall be used for the engineering, procurement and constructioncontract of the power plant and common facilities, for supply contracts estimated tocost the equivalent of or more than $1.0 million, and for civil works contracts more

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TIMETABLE

MILESTONES

Approval No. Approval Signing EffectivityClosing

Original Revised Actual

Loan 2353 02 Oct 2007 09 Oct 2007 27 Mar 2008 30 Jun 2013

STATUS OF COVENANTSCovenants are categorized under the following categoriesaudited accounts, safeguards, social, sector, financial, economic, and others.Covenant compliance is rated by category by applying the following criteria: (i) Satisfactoryall covenants in the category are being compliedwith, with a maximum of one exception allowed, (ii) Partly Satisfactorya maximum of two covenants in the category are not being compliedwith, (iii) Unsatisfactorythree or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy,covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

ApprovalNo.

Category

Sector Social Financial Economic Others Safe ProjectFinancial

Statements

Loan 2353 Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

CONTACTS AND UPDATE DETAILS

than $3 million. The national competitieittive bidding or limtied international biddingshall be used for supply contracts valued at less than $1.0 million. Civil workscontracts estimated at less than $3.0 million shall be procured following NCBprocedures acceptable to ADB. Miscellaneous goods and civil works contracts lessthan $100,000 shall be procured using shopping procedures. Contract packages shallbe prpeared to ensure maximum competition under ICB. Contract packages shall beprepared to ensure maximum competition under ICB. The relevant sections of ADB'sAnticorruption Policy shall be incorporated in bidding documents for all ADB-financedcontracts.

Procurement and ConsultingNotices

http://www.adb.org/projects/39595-023/business-opportunities

Concept Clearance 29 Sep 2005

Fact-finding 20 Jun 2006 to 03 Jul 2006

Management Review Meeting 15 Aug 2006

Approval 02 Oct 2007

Last Review Mission

Responsible ADB Officer Takafumi Kadono (tkadono@adb.org)

Responsible ADB Department Southeast Asia Department

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LINKS

Responsible ADB Division Infrastructure Division, SERD

Executing Agencies Viet Nam ElectricityMr. Le Duc Chan

Project Website http://www.adb.org/projects/39595-023/main

List of Project Documents http://www.adb.org/projects/39595-023/documents