study on the ultra super critical coal-fired power plants in bac

Study on Economic Partnership Projects in Developing Countries in FY2014

Study on the Ultra Super Critical Coal-Fired Power Plants

in Bac Lieu, the Socialist Republic of Vietnam

Final Report

February 2015

Prepared for: Ministry of Economy, Trade and Industry

Ernst & Young ShinNihon LLC Japan External Trade Organization

Prepared by: Kyushu Electric Power Co., Inc.

Preface

This report summarizes the results of ”Study on Private-Initiative Infrastructure in Developing Countries in

FY2014” which the Ministry of Economy, Trade, and Industry of Japan commissioned Kyushu Electric Power

Co., Inc.

This study, “Study on Ultra Super Critical Coal-Fired Power Plants in Bac Lieu, Vietnam”, realized a project,

which total project cost is about 250 billion Yen, for constructing large-scale coal-fired power stations that uses

the excellent, highly efficient technology of Japan in order to solve specific problem of electrical supply

insufficiency in Southern Vietnam.

It is hoped that this report will be of some help for realizing the above project and serve as reference for the

parties concerned in Japan.

February 2015

Kyushu Electric Power Co., Inc.

Project Map

Source: Created by Study Team

Vietnam

Cambodia

Thailand

Laos

China

Hanoi

Ho Chi Minh

Bac Lieu Power Plant

Duyen Hai Coal

Terminal Planned Site

Ho Chi Minh

0km 50km 100km

ABBREVIATIONAbbreviation Nomenclature

BC Buyer's CreditBOT Build, Operate and TransferB/C Benefit Cost Ratio℃ Degree CelsiusCO2 Carbon DioxideCOD Commercial Operational DateCIRR Commercial Interest Reference RateDONRE Department of Natural Resources and EnvironmentDWT Dead Weight TonnageEHS Environmental, Health and Safety GuidelinesEIA Environmental Impact AssessmentEIRR Economic Internal Rate of ReturnEPC Engineering, Procurement and ConstructionERAV Electricity Regulatory Authority of VietnamEVN Vietnam ElectricityFIRR Financial Internal Rate of Returng GramGDE General Directorate of EnergyGDP Gross Domestic ProductEVNGenco2 EVN Power Generation Corporation 2GW Giga Watt (1GW = 1,000,000 kilo Watt)GWh Giga Watt hour (1GWh = 1,000,000 kilo Watt hour)ha Hectare (1ha = 100a = 10,000 m2)IE Institute of EnergyIFC International Finance CorporationIPP Independent Power ProducerJBIC Japan Bank for International CooperationJETRO Japan External Trade OrganizationJICA Japan International Cooperation Agencykm kilo meter (1km = 1,000 meter)

km2 square kilo meter (1km2 = 1,000,000 m2)kt kilo ton (1kt = 1,000 ton)kW kilo Watt (1kW = 1,000 Watt)kWh kilo Watt hour (1kWh = 1,000 Wh)m meter

m3 Cubic meterMOF Ministry of Finance

MOIT Ministry of Industry and Trade

MONRE Ministry of Natural Resources and EnvironmentMPI Ministry of planning and Investment

Abbreviation Nomenclature

PDP7 Master Plan for national electricity development in period 2011-2020 with the visionto 2030 (called Master Plan VII)

NO2 Nitrogen Dioxide

NOx Nitrogen OxidesNPV Net Present ValueO&M Operation and MaintenanceODA Official Development AssistancePM Particle MatterPM10 Particle Matter under 10µmPM2.5 Particle Matter under 2.5µmPPA Power Purchase AgreementPPP Public Private PartnershipPVN Petro VietnamSC Super CriticalSO2 Sulfur DioxideSox Sulfur OxidesUSC Ultra Super CriticalUS¢ United State CentUS$ United State dollarV VoltageVAT Value Added TaxVINACOMIN Vietnam National Coal - Mineral Industries Holding Corporation Limited

TABLE OF CONTENTS

Preface

Project Map

Abbreviation

Contents

Executive Summary

(1) Background and Justification of the Project ············································································· 1

(2) Basic Policies in Determining the Contents of the Project ···························································· 2

(3) Project Outline ··············································································································· 4

(4) Planned Project Schedule ································································································· 13

(5) Implementation Feasibility ······························································································· 13

(6) Technical Advantages of Japanese Company ·········································································· 15

(7) Map Indicating the Location of the Project in the Country Studied ················································ 17

Chapter 1 Overview of the Host Country and Sector

(1) Economic and Financial Status of the Host country ································································· 1-1

1) Overall status of Vietnam ································································································ 1-1

2) Overall economy ·········································································································· 1-2

a) Outline ···················································································································· 1-2

3) Industrial structure ········································································································ 1-3

4) Fiscal revenue and expenditure ························································································· 1-3

5) Foreign direct investment ······························································································· 1-4

6) Infrastructure policies ···································································································· 1-4

(2) Outline of the Sector Involved in the Project ········································································· 1-6

1) Structure of the power sector ··························································································· 1-6

a) MOIT: Ministry of Industry and Trade ··············································································· 1-6

b) ERAV: Electricity Regulatory Authority of Vietnam······························································· 1-7

c) IE: Institute of Energy ·································································································· 1-7

d) MONRE: Ministry of Natural Resources and Environment ······················································ 1-7

e) MOF: Ministry of Finance ····························································································· 1-7

f) MPI: Ministry of planning and Investment ·········································································· 1-7

g) SBV: State Bank of Vietnam ·························································································· 1-8

h) PPCs: Provincial Peoples Committees ··············································································· 1-8

2) Electric power providers ································································································· 1-8

a) VINACOMIN: Vietnam National Coal - Mineral Industries Holding Corporation Limited ················· 1-9

b) PVN：Petro Vietnam ··································································································· 1-9

3) Electricity status of Vietnam ·························································································· 1-14

a) Power demand ········································································································· 1-14

b) Power supply composition ··························································································· 1-15

c) Transmission & distribution losses ················································································· 1-16

d) Rate of electrification ································································································· 1-17

(3) Status of the Project Area ······························································································ 1-18

1) Geography and administrative bodies ··············································································· 1-18

2) Land use ················································································································· 1-19

3) Population ··············································································································· 1-19

4) Industry ·················································································································· 1-19

5) Resources ················································································································ 1-19

Chapter 2 Study Methodology

(1) Contents of the Study ····································································································· 2-1

1) Study and examination of technological matters ····································································· 2-1

2) Research and examination of matters on the environmental and social aspects ································· 2-1

3) Study and examination of financial and economic feasibility ······················································ 2-2

4) Compilation of the action plan and issues towards the realization of the Project ······························· 2-2

(2) Study Methodology and Systems ······················································································· 2-2

1) Study methodology ······································································································· 2-2

2) Study structure ············································································································ 2-2

(3) Study Schedule ············································································································ 2-4

1) Overall schedule ·········································································································· 2-4

2) Result of the field studies ································································································ 2-5

a) 1st field study (Oct. 20 – 30, 2014) ··················································································· 2-5

b) 2nd field study (Dec. 3-13, 2014) ······················································································ 2-6

c) 3rd field study (Feb. 8-14, 2015) ······················································································ 2-7

Chapter 3 Justification, Objectives and Technical Feasibility of the Project

(1) Background and Justification of the Project, etc. ····································································· 3-1

1) Background of the Project ······························································································· 3-1

2) Demand forecast and construction plans in PDP7 ··································································· 3-1

3) Discussion of issues of PDP7 ··························································································· 3-9

4) Scope and beneficiaries of the Project ··············································································· 3-10

5) Effects and impacts from the Project implementation ····························································· 3-10

6) Comparison of alternatives ···························································································· 3-10

(2) For Sophisticated and Streamlined Energy Use ···································································· 3-11

1) Technology adopted for coal-fired thermal power generation in Vietnam ····································· 3-11

2) Technology adopted for the Project ·················································································· 3-12

3) For sophisticated and streamlined energy use ······································································ 3-12

(3) Examinations Needed for the Determination of the Project Contents ··········································· 3-12

1) Power demand estimation ····························································································· 3-13

2) Understanding and analyzing issues for examining and determining the Project contents ·················· 3-14

a) Status of planned power plant site ·················································································· 3-14

b) Procurement of water for plant use ················································································· 3-18

c) Status and developmental plans for the transmission systems ·················································· 3-23

d) Coal procurement ····································································································· 3-35

e) Steam requirements for the plants ·················································································· 3-38

f) Fuel properties of the potential coal used ·········································································· 3-38

g) Environmental load ··································································································· 3-40

h) Funding methods ······································································································ 3-40

3) Technological methods ································································································ 3-40

a) Power generation method ···························································································· 3-40

b) Type of desulfurization equipment ················································································· 3-41

c) Scale of coal receiving facilities ···················································································· 3-41

(4) Outline of the Project Plan ····························································································· 3-42

1) Basic policies in determining the Project contents ································································· 3-42

a) Project implementing entity ························································································· 3-42

b) Period of the Project implementation ·············································································· 3-42

c) Installed capacity ······································································································ 3-42

d) Connection to the power grid ························································································ 3-42

e) Coal procurement methods ·························································································· 3-44

f) Methods of procuring water for plant use ·········································································· 3-44

g) Securing access routes and procuring plant construction materials ············································ 3-44

h) Power source for construction work ················································································ 3-45

2) Concept design and facility specifications ·········································································· 3-45

a) Site layout plan ········································································································ 3-45

b) Boiler and auxiliary equipment ····················································································· 3-47

c) Steam turbine and turbine auxiliary equipment ··································································· 3-48

d) Power generation facilities ··························································································· 3-50

e) Control device ········································································································· 3-52

f) Environmental facilities ······························································································ 3-56

g) Water facilities for the power plants ················································································ 3-59

h) Coal loading facility ·································································································· 3-62

i) Civil engineering facilities ··························································································· 3-65

3) The content of the proposed Project ················································································· 3-74

a) Planned power plant site ····························································································· 3-74

b) Outline of main power plant plans ·················································································· 3-74

4) Issues in adopting suggested technology and systems and their solutions ····································· 3-75

a) Coal procurement method ···························································································· 3-75

b) Offshore engineering work for the port facility development ·················································· 3-75

c) Method of procuring water for plant use ··········································································· 3-75

d) Transmission line development schedule ·········································································· 3-75

e) Protection of mangrove forests around the planned power plant site ·········································· 3-76

f) Development of access road, etc. to the planned power plant site ·············································· 3-76

g) Lack of experience in O&M for SC and USC plants such as once-through boiler ·························· 3-76

Chapter 4 Evaluation of Environmental and Social Impacts

(1) Analysis of Current Environmental and Social Situation ···························································· 4-1

1) Site location ··············································································································· 4-1

2) Natural environment ····································································································· 4-2

a) Weather condition ······································································································· 4-2

b) Geography and geology ································································································ 4-4

c) River water ··············································································································· 4-5

d) Sea water ················································································································· 4-6

e) Status of the ecosystems ································································································ 4-7

3) Social environment ······································································································· 4-8

a) Land use in the Dong Hai district (2012 statistical yearbook data) ·············································· 4-8

b) Ethnic groups ············································································································ 4-9

c) Social infrastructures (2012 statistical yearbook) ·································································· 4-9

(2) Environmental Improvement Effects from the Project Implementation ········································· 4-12

1) Environmental and mitigation measures for air quality ··························································· 4-12

a) Sulfur Oxides ·········································································································· 4-12

b) Nitrogen Oxides ······································································································· 4-12

c) Particle Matter ········································································································· 4-12

d) Environmental-related reference values used in the Project ···················································· 4-12

2) Estimation of air pollutant diffusion ················································································· 4-13

a) Methodology ··········································································································· 4-13

b) Calculation conditions ································································································ 4-13

c) Calculation results ····································································································· 4-15

3) Environmental and mitigation measures for the eco-systems ···················································· 4-18

a) Situation with the mangrove outside of the levee (sea side) ···················································· 4-18

b) Situation with the mangroves inside the levees (land side) ····················································· 4-18

c) Environmental considerations based on the mangrove growth situation ······································ 4-19

(3) Environmental and Social Impact of the Project Implementation ················································ 4-22

1) JICA Guidelines ········································································································ 4-22

2) Confirmation result regarding environmental considerations for the Project ·································· 4-22

(4) Outline of Vietnamese Laws on Environmental and Social Considerations and Compliance Measures ··· 4-30

1) Environmental administration of Vietnam ·········································································· 4-30

2) Outline of Vietnamese environmental laws ········································································· 4-30

a) Laws related to environmental assessment ········································································ 4-30

b) Environment-related air quality standards relevant to thermal power generation projects ················· 4-31

c) Environment-related standards for water quality relevant to thermal power projects ······················· 4-33

d) Environmental standard for waste applicable to thermal power projects ····································· 4-41

e) Environmental standards for noise applicable to thermal power projects ····································· 4-41

f) Environmental standard for vibration applicable to thermal power projects ·································· 4-42

3) Outline of environmental impact assessment (EIA) in Vietnam ················································· 4-43

a) Projects for which EIA must be implemented ··································································· 4-43

b) Implementation of EIA ····························································································· 4-43

c) Recreation of EIA reports ···························································································· 4-43

d) Main contents in EIA reports ······················································································ 4-43

e) Authorities to review EIA reports ················································································· 4-44

f) Review of the EIA report ····························································································· 4-44

g) Approval of the EIA report ·························································································· 4-44

h) Project implementing entity’s responsibility after the approval of EIA report ······························· 4-45

i) Project implementing entity’s responsibilities prior to the operation of the project ·························· 4-45

j) Responsibilities of the EIA report approving institution ························································· 4-45

4) Environmental and social impacts from the project implementation ············································ 4-45

(5) Responsibilities of the Host Country for the Realization of the Project ········································· 4-48

Chapter 5 Financial and Economic Evaluation

(1) Project Cost Estimation ·································································································· 5-1

1) Construction cost ········································································································· 5-1

2) Running cost ·············································································································· 5-4

a) Fuel cost ·················································································································· 5-4

b) O&M cost ················································································································ 5-4

c) Depreciation ·············································································································· 5-4

d) Interest cost ·············································································································· 5-4

e) Corporate tax ············································································································· 5-4

(2) Result of the Preliminary Financial and Economic Analyses ······················································· 5-4

1) Economic analyses ······································································································· 5-4

a) Assumptions·············································································································· 5-5

b) Calculation result ········································································································ 5-6

2) Financial analyses ········································································································ 5-7

a) Conditionality ············································································································ 5-7

b) Calculation result ········································································································ 5-8

c) Estimated tariff ·········································································································· 5-9

Chapter 6 Planned Project Schedule

(1) Approval of revised PDP7 ······························································································· 6-1

(2) Feasibility study ··········································································································· 6-1

(3) Environmental and social impact assessment ········································································· 6-1

(4) Financing arrangement ··································································································· 6-1

(5) Acquisition of licenses and permissions ··············································································· 6-2

(6) Consultant selection ······································································································ 6-2

(7) Infrastructure construction and site work ·············································································· 6-2

(8) EPC bid ····················································································································· 6-2

(9) Construction and installation work ····················································································· 6-2

(10) Coastal work ············································································································· 6-2

Chapter 7 Implementing Organization

(1) Outline of the Implementing Organization ············································································ 7-1

1) EVN: Vietnam Electricity ······························································································· 7-1

a) Power generation companies ·························································································· 7-2

b) EPTC：Electric Power Trading Company ·········································································· 7-2

c) NLDC: National Load Dispatching Center ·········································································· 7-2

d) NPT: National Power Transmission corporation ··································································· 7-2

e) Distribution and retail company (PC: Power Corporation) ························································ 7-3

2) Financial status of EVN ································································································· 7-3

(2) Vietnam’s Organizational Scheme for the Project Implementation ················································ 7-4

(3) Evaluation of the Vietnamese Implementing Organizations’ Ability and Measures (if insufficient) ·········· 7-5

Chapter 8 Technical Advantages of Japanese Company

(1) Expected Forms of Participation for Japanese Company ···························································· 8-1

(2) Advantages of Japanese Company for the Project Implementation ················································ 8-1

1) Technological advantages ······························································································· 8-1

2) Economical advantages ·································································································· 8-2

(3) Necessary Measures to Promote Contracting Japanese Company ················································· 8-3

Executive Summary

1

(1) Background and Justification of the Project

According to the IMF statistics as of October 2014, Vietnam’s economic growth rate is 5.5%, slowing down

compared to the average growth rate of 6.4% for the past ten years. However, demand for electricity remains high,

growing at the rate of 10% or higher, and this trend is expected to continue into the future. To meet this demand,

power sources have been developed pursuant to 7th National Power Development Master Plan No.1208/QD-TTg

(PDP7) which was promulgated on July 21, 2011 by the Ministry of Industry and Trade of Vietnam (MOIT).

According to the plan, the generation capacity up to 40,000MW is slated to be developed by 2015, 75,000MW by

2020, and 138,000MW by 2030. Of this capacity, PDP7 aims to increase the capacity of coal-fired thermal power

to 15,000MW (ratio to the total capacity: 35%) by 2015, 36,000MW (48%) by 2020, and 72,000MW (52%) by

2030.

Ever since the promulgation of PDP7, the development of many power projects, mainly coal-fired thermal power

projects, were launched including IPP projects implemented by Vietnam Electricity (EVN) and other

government-run companies, as well as BOT projects in which foreign investors participated. However, especially

large-scale coal-fired thermal power generation projects failed to start operation according to the plan, due to

issues related to the funding ability of electric power providers and insufficient ability of EPC contractors such as

those from China to manage construction.

Further, China constructed rigs for oil drilling in May 2014 in Vietnam’s territorial waters without prior consent,

triggering a riot. It in turn caused Chinese investors and EPC contractors to pull out en masse. The construction of

many of the coal-fired power plants ceased temporarily, saddling Vietnam with huge risks associated with power

source development in the future.

Aside from coal-fired thermal power, gas-fired thermal power has suffered similar issues. Chevron (USA), the

operator of the Block B gas field which is off the shore of Ca Mau Province and was expected to supply gas for O

Mon Thermal Power Plant Complex in the southern region, stated its withdrawal in 2013, undermining the

prospect for the development of a power source equivalent to 3,000MW.

Given these situations, power supply in 2017 and after is expected to be tight especially in the southern region,

and the Vietnamese government issued a Prime Minister Decision No.2414 (Nov. 2013) and designated Vinh Tan

4 coal-fired thermal power plant (1200MW) in Bình Thuan Province, Long Phu 1 coal-fired thermal power plant

(1200MW) in Soc Trang Province and Duyen Hai 3 coal-fired thermal power plant (660MW) in Tra Vinh

Province as the utmost priority plants for urgent development and urged early development of these power sources

through measures such as specially allowing the selection of EPC contractors without bidding.

Since there is a concern that the development of projects may be delayed as described above, Bac Lieu coal-fired

thermal power project has drawn attention since around the end of 2013 as a case whose development needs to be

accelerated, in order to start operation sooner than 2028 which had been the plan at the time of the promulgation

of PDP7.

2

This Project is Phase 1 (1,200MW) of the power generation complex planned for the Dong Hai district, Bac Lieu

Province in southern Vietnam with the total output of 3,600MW, and its scope includes a coal-fired thermal power

generation plants, port facilities for coal transportation and water intake and discharge facilities. Once completed,

it is expected to supply electricity not only to the customers in Ho Chi Minh, a city of commerce, but also to the

customers in southern Vietnam in and around Bac Lieu Province, thereby improving energy security.

According to the Provincial People's Committee of Bac Lieu, the development of the road system in the

surrounding areas and invitation of industrial complexes will be promoted through the construction of Bac Lieu

thermal power plant; thus the job creation in the province is also anticipated.

The project is planned as coal-fired thermal power project that utilizes imported coal, for which a proposal can be

made to adopt ultrasuper critical technologies as the first project of the kind in Vietnam by utilizing eco-friendly

coal-fired thermal power technologies that Japan takes pride in. By adopting the idea, it can contribute to the

solving of electric power shortage and help reduce the coal use more than the supercritical power generation can,

and thus environmental load.

Also, the adoption of the ultrasuper critical technologies for this project is expected to encourage the participation

of private funds and other donors and promote the full-fledged dissemination of ultrasuper critical technologies in

Vietnam.

(2) Basic Policies in Determining the Contents of the Project

Vietnam has mainly exported high-quality anthracite coal mined in the Quang Ninh area in the northeast region of

the country to Japan and South Korea while generating electricity using low-quality anthracite coal obtained in the

coal preparation process through subcritical coal-fired power generation, or using subbituminous coal that is

produced in the coal field in the Red River delta through subcritical coal-fired thermal power generation.

However, the efficiency of these coal-fired thermal power plants is low at around 30%, and the use of domestic

coal will be difficult in the future, from the standpoint of environmental load reduction and the increase in mining

costs due to a switch from open-pit mining to underground mining. In this context, more plans are drawn in recent

years for supercritical coal-fired thermal power plants that use imported coal, especially for the central to southern

regions on the country.

The Vietnamese government is deliberating the adoption of ultrasuper critical coal-fired thermal power as projects

for 2020 or later. EVNGenco2, an entity expected to be responsible for implementation, has stated its intention of

discussing the adoption of ultrasuper critical power technologies. EVN, its parent company, also indicated its own

willingness to be the one to implement Vietnam’s first ultrasuper critical thermal project. Once a formal approval

was given as an investor in the revised PDP7, it wishes to prepare investment reports (detailed FS), consider

prices and timing for implementation, and decide on the adoption of ultrasuper critical technologies. Thanks to

3

various studies backed by the Japanese government regarding the adoption of ultrasuper critical technologies in

Vietnam, the level of recognition and understanding of the necessity for the ultrasuper critical technologies has

increased steadily in the country.

In this light, this study compares and examines both supercritical and ultrasuper critical power generation from the

technological and economical viewpoints. Also, a comparative investigation is conducted for the adoption of a

1,000MW unit which can achieve maximum economy of scale from adopting ultrasuper critical technologies and

a 600MW unit which are the mainstream in subcritical and supercritical power generation in Vietnam.

The coal for this project is planned to be imported coal. However, the Bac Lieu area is in the Mekong Delta region,

and the development of port facilities for large coal ships will be difficult. There is a coal terminal plan in

neighboring Tra Vinh Province, which is a PPP project utilizing funds from JICA and for which a FS is in progress.

Thus, a comparative investigation is done for transportation with domestic vessels of 10,000DWT using this

terminal and transportation with ocean-going vessels of 30,000DWT which will travel from outer sea directly into

Bac Lieu.

Since the implementing entity of Bac Lieu 1 is planned to be EVNGenco2, buyer’s credit (BC) and yen loan

assistance are examined in terms of financing. And also financing option of IPP/BOT is examined.

Mangroves are found naturally in the area where the power plant is planned to be sited, and the original plan

called for the coal storage yard and disposal yard to be located in the area of mangroves. In order to reduce the

development on the land with the mangrove forest, a plan is drawn to move the site toward inland and an

appropriate layout is decided by asking for suggestions from the Vietnamese government, Provincial People’s

Committee of Bac Lieu, EVN, EVNGenco2 and other organizations.

Transmission lines are planned to be connected to Thot Not Substation which is 124km away from the planned

site, using two-circuit, 500kV transmission lines. For smooth acquisition of the land and construction work for the

transmission lines, it is necessary to minimize the number of provinces that transmission lines travel through. In

this study, an assumption is made that the transmission lines connect Can Tho City, Hau Giang Province and Bac

Lieu Province, even though the detailed transmission line plan will have to be updated once the revised PDP7 is

approved to reflect the revisions.

4

(3) Project Outline

1) The contents of project and the study of technical aspect

This project is intended to plan a supercritical pressure or ultra-supercritical coal-fired power plants based on the

premise of overseas coal use , in order to relax Vietnam domestic power supply and demand , in particular,

contribute to the power supply in Vietnam southern region, contributing to whole Vietnam energy security better.

The study of the technical aspects of this project is to perform the power plant planning by assuming the use of

imported coal satisfying the following coal properties.

Table 1 Estimated range of design coal property

Coal Property Criteria

Allowable Unallowable

Moisture 8～16 % ＞ 16 %

Inherent moisture 3～10 % ＞ 10 %

Calorific value

(Equilibrium moisture base）

5980 ～ 6554 kcal/kg ＜ 5980 kcal/kg

Ash (Equilibrium moisture base） 4～16 % ＞ 16 %

Volatile matter


36～42 % ＜ 36 % or ＞42 %

Sulfer


0.4～1.4 % ＞ 1.4 %

MgO+Na2O in ash 1.5～4.0 % ＜ 1.0 %, ＞ 4.0 %

K2O in ash 1.0～2.0 % ＜ 0.6 %, ＞ 2.0 %

SiO2/Al2O3 ratio in ash ＜ 2.5 ＞ 3

HGI ＞ 50 ＜ 45

Ash melting point ＞ 1250 ℃ ＜ 1200 ℃

Coal particle diameter ＜50 ㎜：100 %、＜1 ㎜：＜15 % ＜1 ㎜：＞ 15 %

Source：Presented by study group

5

And regarding the power generation facilities plan , with a view to the introduction of supercritical pressure or

ultra-supercritical plant, it is to be planned each required facility/equipment and layout consideration under the

assumption of the following terms and conditions.

Table 2 The design outline of this project

Fuel procurement Coal imported from foreign countries (Indonesia, Australia, Russia, etc.)

via marine transportation

Transmission line

connection Connected to the 500kV system or to the 500kV and 220kV systems

Plant

configuration

600MW-class SC plant

× 2 units × 3 phases

600MW-class USC plant

× 2units × 3 phases

1,000MW-class USC

plant

× 1 unit × 3 phases

Steam condition Main steam：24.1MpaA, 566

Reheat steam temp.：566

Main steam：24.1MpaA, 593


Plant efficiency

(HHV, Gross) 41.08 % 41.88 % 41.96 %

Plant cooling

water Use sea water from nearby sea

Boiler type Supercritical pressure variable pressure operation once-through boiler: radiant reheat type

Turbine type Tandem compound 3 casing 4 flow exhaust

Reheat-regenerative type

Tandem compound 4

casing 4 flow exhaust


Source: Presented by study group

6

As an example of results through this investigation and study, power plant layout plan of the case that configuring

in one phase per 600MW scale ultra-supercritical plant × 2 units for 3 phases is shown as follows .

Table 3 Layout option of 600MW-class Ultra supercritical plant × 2 units

Site Layout for 3 phases Power Train Configuration

30,000DWT option

10,000DWT option

Power Train for 1 phase


7

2) Construction cost

The construction cost was calculated by referring to the contract amounts for recent and similar coal-fired thermal

power plants in Vietnam and other Southeast Asian countries. The result is shown in Tables 4 and 5. Phase 1

which is covered in this study aims to develop common facilities serving all the power plants (substation, power

and harbor, land preparation, etc.) and includes the cost for those facilities. Therefore, costs listed under Phase 1

are higher in comparison to other similar projects.

Table 4 Estimated construction cost for Bac Lieu power plants (Phase 1) with the 30,000DWT ship plan

(US$ Million)

Item

Case 1 Case 2 Case 3

600MW×2 600MW×2 1000MW×1

SC USC USC

1 Boiler & flue gas desulfurization

equipment 635 646 523

2 Steam turbine & generator 455 461 373

3 Other equipment and civil

engineering and construction work 658 658 501

4 Port system 257 257 257

5 Substation 22 22 19

6 Land acquisition & preparation, and

compensation 82 82 82

7 Consultant fee & management fee 54 54 53

8 Contingency 216 218 181

9 Total 2,379 2,398 1,987

Source; Prepared by Stud Group

8

Table 5 Estimated construction cost for Bac Lieu power plants (Phase 1) with the 10,000DWT ship plan

(US$ Million)

Item


600MW×2 600MW×2 1000MW×1

SC USC USC

1 Boiler & flue gas desulfurization equipment

635 646 523


3 Other equipment and civil engineering and construction work

658 658 501



6 Land acquisition & preparation, and compensation

94 94 94



9 Total 2,268 2,287 1,876


Table 6 shows the breakdown of each cost to the foreign funds and domestic funds for Case 2. The ratio is similar

in other cases.

Table 6 Breakdown of construction cost for Case 2: USC 600MW×2 units, 30,000DWT plan

Item

Foreign portion

(US$ million)

Domestic portion

(VND billion）

Total

(US$ million)

1 Boiler & flue gas desulfurization equipment 483 3,470 646

2 Steam turbine & generator 376 1,804 461

3 Other equipment & civil engineering work

457 4,273 658

4 Port system 39 4,639 257


6 Land acquisition & preparation, and compensation 0 1,734 82


8 Contingency 141 1,630 218

9 Total 1,554 17,930 2,398

Exchange rate; US$1=VND21,246


9

3) Result of the Preliminary Financial and Economic Analyses

The preliminary financial and economic analyses in this study are conducted according to Decision

2014/2007/QD-BCN, which stipulates the methodology of financial and economic analyses for power generation

projects in Vietnam. The economic analyses such as Economic Internal Rate of Return (EIRR) and their

sensitivity analyses are carried out first, followed by the calculation of Financial Internal Rate of Return (FIRR).

The main assumptions used for the calculation are shown in Table 7.

Table 7 Main assumptions

Item Value Remarks

Tariff US¢9.1/kWh

A higher value than other coal-fired power plants considering

that imported coal is used and common facilities for the entire

plants are developed during Phase 1

Annual operation time 6,500 hr./year Stipulated in Decision 2014/2007/QD-BCN

Thermal efficiency (SC) 41.08% Calculated based on the assumed specifications and properties

of coal assumed to be used

Thermal efficiency

(600MW USC) 41.88%

Calculated based on the assumed specifications and properties


Thermal efficiency

(1000MW USC) 41.96%

Calculated based on the assumed specifications and properties


Auxiliary power ratio 7.8% The value from the similar projects is used

Escalation rate N.A. Not considered based on Decision 2014/2007/QD-BCN

Interest rate (BC) 2.19% Yen-denominated interest rate for Vietnam’s EVN

( CIRR 1.24% + risk premium 0.95% )

Repayment period (BC) 12year The longest redemption period for power plants is applied

Interest rate (Yen loan) 1.40% Standard condition of Yen-loan for Vietnam

Repayment period

(Yen loan) 30year

Standard condition of Yen-loan for Vietnam

Discount Rate 10% Stipulated in Decision 2014/2007/QD-BCN

Debt Equity ratio 7 : 3 The value from the similar projects is used


10

a) Economic analyses

The result of the calculation with these conditions is given in Table 8. In all cases, EIRR is higher than 10%, the

hurdle rate stipulated by the decrees, the Benefit Cost Ratio is greater than one (1) and NPV is a plus figure; thus

the Project is judged to have economic value.

When 30,000DWT cases and 10,000DWT cases are compared, 10,000DWT cases have higher EIRR since the

cost for construction and regular dredging is less.

Table 8 EIRR, B/C and NPV

Case 1 Case 2 Case 3 Case 4 Case 5 Case 6

600MW×2 600MW×2 1,000MW×1 600MW×2 600MW×2 1,000MW×1

SC USC USC SC USC USC

30,000DWT 10,000DWT

Economic Internal Rate of Return (EIRR)

10.01% 10.11% 10.27% 10.53% 10.63% 10.91%

Benefit Cost

Ratio (B/C) 1.00 1.00 1.01 1.02 1.03 1.04

Net Present

Value (NPV) 2 23 47 104 125 150


b) Financial analyses

The yield of Vietnam’s 10-year government bonds has gone down from about 12% in 2012 to 7.2% as of the end

of December 2014. Considering the yield of 10-year government bonds as the hurdle rate, FIRR is greater than

this value in all cases, making the Project viable from the financial point of view.

Table 9 EIRR, and NPV with the 30,000DWT ship plan

Case 1 Case 2 Case 3 Case 2’ Case 3’

600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1

SC USC USC USC USC

BC BC BC Yen-loan Yen-loan

Financial Internal Rate of Return

(FIRR) 15.47% 15.68% 16.03% 23.86% 24.24%

Net Present Value

(NPV) 484 507 447 906 777


11

Table 10 FIRR, and NPV with the 30,000DWT ship plan


600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1

SC USC USC USC USC



(FIRR) 16.58% 16.79% 17.41% 25.06% 25.70%

Net Present Value

(NPV) 558 581 520 961 832


4) Environmental and social impacts from the project implementation

a) Impacts on ecosystems (cutting of mangroves)

A mangrove wetland exists along the coast near the Project site, but it is not designated as a special protection

area. According to the World Bank’s safeguard policies, mangroves are considered to be a natural habitat.

Natural habitats are classified into Categories A and B, and no financing will be approved if a grave change or

deterioration of natural habitat will occur in Category A. For Category B, if it is decided that the impact is not

grave, there is no alternative, and overall benefits from the project are much greater than the environmental

costs, financing is approved with conditions to incorporate appropriate mitigation measures.

With this in mind, a proposal has been made to move the site toward inland in order to minimize the

environmental impacts, from the usual site for power plants which usually face a coast. Natural forests

including mangroves are managed by the Provincial People’s Committee of Bac Lieu and for any forest

development in excess of 20ha, a notification to change the land use must be submitted and the approval of the

prime minister obtained. Any work must proceed by checking with the Provincial People’s Committee of Bac

Lieu that oversees the regional development. The people’s committee received the proposal to move the site

inland to protect mangroves favorably.

b) Impacts on ecosystems (thermal effluent)

During the plant operation, a large quantity of cooling water will be discharged into the sea; thus, the effect that

thermal effluent and sea water temperature rise have on the ecosystems must be examined on the continuous

basis starting in the EIA stage.

12

c) Pollution measures (air)

At this point, there is no large factory that causes air pollution in the area. It will be necessary to implement

appropriate measures to control air pollution from transporter vehicles during construction, flue gas during

operation, coal dust from coal transporting facilities and dust from ash disposal sites.

d) Pollution measures (water quality)

On the northern and western sides, shrimp farms have been developed. In shrimp farming, insecticide and

herbicide are used and sites are emptied and disinfected using lime regularly, producing a large quantity of

polluted water. The water is then discharged to the sea outside of the levees..

According to the residents, the quality of the water taken has worsened due to effluent from the factories

upstream. It has caused the shrimp harvest to go down but they don’t know who to turn their anger on. If the

power plants are is to be developed, water quality before the development must be examined in an open manner

with the coordination with the people’s committee so that the project will not be blamed for the water quality

deterioration.

e) Pollution measures (noise)

Even through the measured noise level around the power plant has not been obtained, it was confirmed that

there is no large source of noise during the field study. With a residential area along the river on the eastern side

of the power plant, the noise level near the current boundary must be checked and evaluated. In some cases, the

reduction of nighttime work, construction of partial sound barrier in the adjacent area and other measures might

be required.

f) Pollution measures (waste)

Coal ash and gypsum will be produced through the operation of the Project. Coal ash will be transferred to the

disposal site using the slurry method. While the capacity of the disposal site seems sufficient, further

examination will be needed to reduce the size of the ash disposal site with the plans to reduce waste by utilizing

coal ash and gypsum in bricks, etc.

g) Social environment (resettlement of residents)

The residents subject to resettlement due to construction on the site live mainly along the river. In other areas,

there are shrimp monitoring huts. Some houses seem to make living by serving as a rest area for bikers. Based

on the field survey, those subject to resettlement due to the Project will be 30 households (about 120 persons) in

the case of 30,000DWT, and 140 households (about 560 persons) in the case of 10,000DWT. There are many

aqua-culture ponds and salt fields in this area, therefore, when the site is prepared before the construction work,

houses and aqua-culture ponds must be relocated. Thorough consideration is needed during the EIA stage.

13

h) Social environment (work environment)

The area around the site is a poor area where it is hard to obtain drinking water since wells only produce sea

water. It is necessary to develop infrastructures for the area in order to secure food, clothing and housing for a

large number of workers as well as for locally hired workers during construction and staff in charge of

operation. It is important to build hospitals to prepare for any injury or diseases.

(4) Planned Project Schedule

Figure 2 shows the planned project schedule:

Figure 2 Planned project schedule

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Approval of revised

PDP7

Site Masterplan

Feasibility study (FS)

Environmental and social

impact assessment

Financing arrangement

Acquisition of licenses and

permissions

Consultant selection

Infrastructure construction

and site work

EPC bid

Construction and installation

work

Coastal work (dredging,

levee, etc.)

Source: prepared by Study Group

(5) Implementation Feasibility

The study revealed that the project will not be eligible for yen load assistance thus the use of BC is desirable if

supercritical technologies are adopted. However if ultrasuper critical technologies are adopted, the implementation

of the project is feasible in both of the financial scenarios. It was also confirmed that if the price of coal goes up

more than assumed in the study, the project is not feasible in the case of the adoption of supercritical technologies.

Unit1 Unit2

14

It is best to judge financial requirements based on the examination of the detailed layout, project costs, appropriate

types of imported coal and detailed coal supply methods, etc. in the detailed FS to be conducted in the future

while carrying out environmental and social impact assessment. Currently, EVN wishes to implement Vietnam’s

first ultrasuper critical thermal power project, and for this purpose is interested in yen loan assistance.

It was confirmed that the start of operation for the project is planned to be accelerated to 2023 in the revised PDP7

from the original 2028. The timing of the project gives enough leeway in schedule for both financial cases of yen

load assistance and BC, and will be after five or so years after the start of operation of supercritical coal-fired

thermal power plants in 2018, giving the country an opportunity to build operational knowhow. This timing

should create the right situation for the adoption of ultrasuper critical technologies. EVNGenco2 intends to carry

out detailed FS as well as environmental and social impact assessments as soon as the revised PDP7 is approved.

At this point, the revised PDP7 is expected to be approved by the government over the second quarter of 2015.

EVNGenco2 is an entity that was established in June 2012 to be financially independent from EVN, and its

financial situation is currently tight; however it is expected to recover in 2016 - 2017 thanks to operational

efficiency improvement and the loan program by ADB to support Genco.

Since foreign banks, Japanese banks and local banks remain willing to offer loans to large-scale state-run

companies such as EVN and PVN (Petro Vietnam) and the level of public bonds including

government-guaranteed bonds is kept at an appropriate level, the financing arrangement is likely to be possible.

In case supercritical or ultrasuper critical technologies are adopted, EVNGenco2’s operating ability does not seem

to be a cause of concern since the company has experience operating subcritical coal-fired thermal power plants

and has taken on a primary role in O&M training for coal-fired thermal power in Vietnam by offering O&M

training at its Pha Lai coal-fired thermal power plant to other power providers upon construction of new coal-fired

power plants. However, supercritical and ultrasuper critical power plants are different from subcritical power

plants in terms of technologies and operation; thus training by the manufacturers and O&M support from other

donors will be desirable.

The site location poses no particular problem thanks to the overall backup by the Provincial People’s Committee

of Bac Lieu which is the governing body of the site and the favorable relationship between EVNGenco2 and the

people’s committee. The basic agreement has been reached regarding the protection of mangrove, since the

negotiation has been carried out based on the proposal to move the site and mangroves work to prevent the

scattering of coal dust and fly ash.

However in the detailed FS, there will be a need for evaluation after calculation of land acquisition costs and

confirmation of the number of residents to be resettled, etc. based on the detailed layout. Also, since the site is in

the Mekong Delta area, the amount of necessary civil and coastal work will be greater than usual; thus the

economical evaluation is one of the important consideration points.

15

The transmission line plan will be corrected once the revised PDP7 is approved to reflect the revisions, and NPT

in charge confirmed that the steel tower construction is easy but the land acquisition often takes time; therefore it

is best to plan ahead. It also was confirmed that ADB indicated its interest in financing the said plan. Currently,

ADB has extended a line of credit of up to 7,300,000 USD to NPT, and is considering the extension of its period

by two to three years from the original 2020. The detailed FS should consider the use of such fund.

(6) Technical Advantages of Japanese Company

1) Technical advantages

With Japan’s low rate of energy self-sufficiency, it has to rely on fuel imported from overseas, and as a result, it

has a keen interest in highly efficient use of energy and has tackled the technological development for

high-efficiency thermal power generation. Prompted by the worldwide concern for global warming in recent years,

Japan has continuously worked to develop technology for environmental protection including those for ultrasuper

critical power generation, flue-gas desulfurization equipment and electrostatic precipitator to reduce

environmental load such as CO2, NOx, SOx, particle matters, etc. emitted from coal-fired thermal power plants.

Thanks to these technological developments, Japan’s thermal power generation technology and products are at

a globally high level, and the thermal power field has gained economical and environmental advantages. The use

of Japanese heavy electric machinery makers could be an attractive option for Vietnam.

Also, with regard to the power plant construction technique, Japan’s heavy electric machinery manufacturers are

excellent in managing schedules for construction work. Building a power plant can take a long time and the ability

to stick to a schedule in such work is very important in a situation with electric power shortage such as one that

Vietnam is experiencing.

Moreover, as for the operation and maintenance technology for coal-fired power plants, Japanese power

companies have accumulated ample O&M experiences and knowledge as well as technology to utilize various

types of coal especially imported coal and technology to effectively utilize resources, such as the use coal ash

generated from power plants in civil work and building material., etc..

For the reasons above, and the technological advantages of thermal power generation facilities, O&M technology

and experience addressing issues particular to coal-fired thermal power generation facilities, and other

comprehensive technological abilities superior to many other countries, the use of Japan’s coal-fired thermal

power generation technology is likely to be attractive to Vietnam.

2) Economical advantages

To demonstrate the advantages of Japanese companies in international competition, it is important for the

government and private sector to join force and promote the export of an infrastructure package that includes the

supply of infrastructures, excellent technology, financing, O&M, etc. While infrastructure projects tend to have

higher project cost that comes with undertakings by Japanese companies in other countries could be reduced

through collaboration with those companies and public institutions such as JBIC (BC, Overseas investment loans),

JICA (Yen loan), etc.

With regard to collaboration with public institutions, President Obama of the USA announced the Climate Action

16

Plan in June 2013, and declared to end the use of public funds to assist new construction of coal-fired thermal

power plants overseas. He also requested other countries and multilateral development banks to take similar

actions without delay, spreading the move among public institutions in Europe and the United States to limit the

public financing and support for coal-fired thermal power plants.

On the other hand, Japan’s policy is to offer strategic economic cooperation and infrastructure systems including

coal-fired thermal power plants, on the belief that if the introduction of a coal-fired thermal power plant is

required, Japan will contribute to increasing the plant efficiency and lowering carbon emissions. There are cases in

Vietnam where JBIC financed a new coal-fired thermal power project for which the Export-Import Bank of the

United States had stopped financing.

When offering financing support to overseas projects, it is important for the government and private sector to

work together and share roles, with the government bearing the political risks in addition to contributing and

financing necessary funds. NEXI’s trade insurances play an important role when promoting the export of

infrastructure systems.

17

(7) Map Indicating the Location of the Project in the Country Studied

Figure 3 Location of Bac Lieu coal-fired TPP


Vietnam

Cambodia

Thailand

Laos

China

Hanoi

Ho Chi Minh

0km 50km 100km

Bac Lieu Power Plant

Duyen Hai Coal

Terminal Planned Site

Ho Chi Minh

0km 50km 100km

Chapter 1 Overview of the Host Country and Sector

1-1

(1) Economic and Financial Status of the Host country

1) Overall status of Vietnam

The proper name for Vietnam is the Socialist Republic of Vietnam and the name “Vietnam” comes from a Chinese

word meaning “a state of Viet in the south.” Vietnam is a country located on the eastern coast of Indochina in

Southeast Asia, and is elongated in shape stretching about 1,650km from north to south and 600km from east to

west. Most of the nation’s land is on the eastern side of the Annamite Range that run from north to south in

parallel to the Pacific Ocean coastline on Indochina; thus the width from east to west is only 50km at the

narrowest point. The nation shares its borders with China to the north and Laos and Cambodia to the west, and

faces the South China Sea to the south and east.

The land area of Vietnam is about 330,000 km2, and is close to the size of Japan’s total area excluding Kyushu.

For the purpose of regional administration, the country has five cities directly managed by the government, which

are Hanoi, Ho Chi Minh, Da Nang, Hai Phong and Can Tho, and 58 provinces.

Much of the nation’s history is that of repeated invasions and controls by outside forces, and it was not until 38

years ago in 1976 that Vietnam won its independence and national unification. Since 1987, the nation has

promoted its economic prosperity through a market-oriented economic reform, and by forging ties with

international markets by joining WTO, ASEAN and APEC. The population of Vietnam is about 91,700,000 (as of

2013), which is the third largest of the ASEAN member countries following Indonesia and Philippine.

1-2

2) Overall economy

Under the Doi Moi (renewal) policy issued in 1986, the nation’s economic growth accelerated since the 1990s,

and the nation achieved the economic growth at the rate of over 9% in the middle of the 1990s. However, the rate

of economic growth plummeted to 4.8% in 1999, after the sharp drop in the foreign investment triggered by the

1997 Asian currency crisis. Faced with the challenge, the Vietnamese government set up a 10-year national

strategy in 2000 to double the GDP and increase he share of industrial sector in the GDP to 40% in 10 years.

Thanks to the effort to run the nation by placing priority on economic growth, the real GDP growth rate had

remained over 7% between 2000 and 2007. However after 2008, the rate of growth fell to 5-6% due to the

increase in trade deficit causing the reduction in foreign currency reserves, currency depreciation and price hike.

Table 1-1 Basic Economic Indicators in Vietnam

Unit 2008 2009 2010 2011 2012 2013

％ 5.7 5.4 6.4 6.2 5.3 5.4

milion USD 91,094 97,180 106,427 123,679 155,820 171,222

USD 1,154 1,181 1,297 1,532 1,753 1,902

％ 23.1 6.7 9.2 18.7 9.1 6.6

％ 4.7 4.6 4.3 3.6 3.2 3.6

VND／USD 16,977 17,941 18,932 20,828 20,828 21,036

milion USD 26,488 33,085 49,343 57,841 44,900 49,100

％ 32.4 41.6 42.2 41.5 41.1 40.4

Exchange rate(end of period)Outstanding externaldebtExternal debt(ratio to GDP)

Unemployment rate

Real GDP growth rate

Nominal GDP

GDP per capita

Inflation rate

Source: Presented by study group based on the data of IMF World Economic Outlook Database October 2014 and

JETRO

In 2011, the Vietnamese government announced a resolution to shift its focus from the economic growth of the

nation to inflation control. Since then, the national economy stabilized thanks to the great increase in export due to

high demand for smart phones and the recovery of the foreign direct investment, and the inflation ended. Since

2012, the government has taken a new direction of monetary ease by lowering interest rates. The export by

foreign-capital companies that were set up in Vietnam through direct foreign investments helped foreign currency

reserves to increase significantly. In 2013, the inflation rate reached the lowest level in the past 10 years, and the

pressure of inflation had eased.

Table 1-2 Foreign trade and foreign currency reserve

Unit 2008 2009 2010 2011 2012 2013

milion USD 62,685 57,096 72,191 96,906 114,631 132,135

milion USD 80,714 69,949 84,801 106,750 114,347 132,125

milion USD -18,029 -12,853 -12,610 -9,844 284 9

milion USD 23,890 16,447 12,467 13,539 25,573 25,894

Total export

Total import

Balance of trade

Foreign currencyreserve

Source: JETRO

1-3

3) Industrial structure

Vietnam’s key industry had been agriculture until the 1980s. Ever since the introduction of market economy under

the Doi Moi policy of 1986, the share of the primary industry (agriculture, forestry and fisheries industry ) in GDP

has dropped and the share of the secondary (industry and construction) and tertiary (service) industries has

increased. However even now, the workers in the agriculture section account for half the total workers.

Table 1-3 Changes in GDP

2008 2009 2010 2011 2012 2013

Agriculture, forestry and fisheries 20.4% 19.2% 18.9% 20.1% 19.7% 18.4%

Mining and quarrying 9.1% 9.1% 10.0% 10.3% 11.9% 11.5%

Manufacturing 18.6% 18.3% 18.0% 18.0% 17.4% 17.5%

Electricity, gas and heat supply 3.0% 3.4% 3.3% 3.2% 3.2% 3.5%

Water, waste and sewer 0.5% 0.4% 0.5% 0.5% 0.5% 0.5%

Construction 5.9% 6.1% 6.4% 5.9% 5.6% 5.3%

Wholesale, retail and repair 12.9% 13.3% 13.2% 13.1% 13.1% 13.4%

Transportation and storage 3.1% 3.1% 3.0% 3.0% 3.0% 3.0%

Lodging and restaurant 3.5% 3.7% 3.7% 3.8% 3.8% 3.9%

Communication 1.1% 1.1% 1.1% 0.9% 0.8% 0.8%

Real estate 6.4% 6.4% 6.2% 6.0% 5.6% 5.4%

Others 15.5% 15.9% 15.7% 15.3% 15.5% 16.9%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Source: JETRO

4) Fiscal revenue and expenditure

The Vietnamese government has suffered a chronic deficit since the end of the 1990s due to the need for the

investment for social infrastructures and other items. The reasons for the high fiscal expenditures include demand

for the development of infrastructures prompted by rapid economic growth.

1-4

Table 1-4 Revenue and expenditure of Vietnam

Unit 2008 2009 2010 2011 2012 2013

billion VND 429,523 462,877 588,234 719,403 733,446 820,954

billion VND 437,416 571,807 647,711 748,897 954,229 1,021,243

billion VND -7,893 -108,930 -59,477 -29,494 -220,783 -200,289Fiscal revenue andexpenditure

Expenditure

Revenue

Source: IMF World Economic Outlook Database October 2014

5) Foreign direct investment

The direct investment in Vietnam has increased steadily, promoted by the establishment of Law on Foreign

Investment (1988) and the lifting of economic sanctions by US (1992). Even though the investment decreased at

times due to impacts from Asian currency crisis, the amount of investment reached the highest level with 71.7

billion USD on the approval basis and 11.5 billion USD on the implementation basis in 2008 after joining WTO in

2007. After Lehman's fall, the level of investment has fluctuated at the same level, and the amount of the foreign

direct investment in Vietnam in 2013 was 22.4 billion USD on the approval basis and 11.5 billion USD on the

implementation basis.

Table 1-5 The amount of foreign direct investment

2008 2009 2010 2011 2012 2013

Amount onapproved basis

million USD 71,727 23,108 19,887 15,619 16,348 22,352

Amount on theimplementation basis

million USD 11,500 10,000 11,000 11,000 10,047 11,500

Number ofinvestment cases

1,171 1,208 1,237 1,191 1,287 1,530

Source: General Statistics of Vietnam

6) Infrastructure policies

In Vietnam’s investment environment, underdeveloped infrastructures pose a grave challenge, and foreign

companies and countries that are interested in investing in the country have expressed a strong desire for the

prompt development. However, the fund of the Vietnamese government is limited and investments by private

companies in infrastructure projects will be essential. In November 2010, the Vietnamese government issued

Decree 71 that set forth the conditions applied to PPP projects that are implemented with the investments by the

government and private sector (hereinafter PPP law).

Foreign-capital companies have a keen interest in the potential for infrastructure businesses in Vietnam and the

PPP law seemed to encourage private investments. However, the law imposes many challenging restrictions on

1-5

private businesses such as that “foreign investors (private) will be selected through open bidding.” Before the PPP

law came into effect, various schemes for the participation by private companies in the infrastructure businesses

have been introduced, such as BOT (build-operate-transfer) and BT (build-transfer). However, there are very few

infrastructure projects through which the private companies make profit if there is no added activity. The reasons

include 1 the utility rates are cheaper than neighboring countries, 2 low transparency with regard to permissions,

procedures and interpretation of laws. Other issues for foreign-capital companies to finance the projects are that

projects without the governmental guarantee tend to have higher risks, raising the hurdle for participation.

The most important infrastructure to be developed in Vietnam is power sources. Since the summer of 2009, there

have been frequent planned outages in summer, affecting manufacturers significantly. If the situation of unstable

power supply continues, it could discourage foreign investments which have been steady to this point. To further

promote power source developments, Vietnamese companies (IPP) and foreign-capital companies (BOT) in

addition to EVN (Vietnam Electricity) are allowed to participate in the power generation industry.

The main power source is expected to shift from hydropower to coal while investments focus on small-scale

hydropower generation in rural regions. There are some investments in renewable energy, especially in wind

power, but with the low subsidy level from the government, those projects are not likely to be profitable.

During the national convention of the Communist Party of Vietnam in 2011, the “2010-2020 socioeconomic

development strategy” was adopted, in which the goals were set to raise the annual economic growth rate to 7-8%

and annual earning per capita in 2020 to 3,000USD. To achieve these goals, it is essential to reduce the annual

trade deficit of 10 billion USD, and for that, the continuous measures to improve the investment environment are

needed. Of those measures, the development of infrastructures such as electricity, port and harbor facilities, roads,

railways, and water supply and sewerage systems are of utmost importance. The creation of an attractive business

environment for foreign investors involved in the infrastructure businesses will be one of the urgent tasks of the

Vietnamese government.

Figure 1-1 Change in infrastructures investments

Source: Business Monitor International Vietnam Infrastructure Report

1-6

(2) Outline of the Sector Involved in the Project

1) Structure of the power sector

Figure 1-2 is of the association chart of the main agencies involved in electricity-related matters.

Figure 1-2 Power sector association chart


a) MOIT: Ministry of Industry and Trade

The Ministry of Industry and Trade (MOIT) was created by merging of the former Ministry of Industry and

Ministry of Commerce that regulated and oversaw electricity and energy fields in July 2007, and MOIT took over

responsibilities of the former Ministry of Industry and controls electricity and energy fields in addition to

industries. MOIT’s main duties are listed below:

1. Draw laws and regulation, national developmental strategies and plans, and master plans for the industries

under its control

2. Implement and oversee laws and regulation, strategies and plans, and master plans

3. Grant permission to the industries under its control, such as for power source development plans and

electricity tariff

MOIT’s duties in the power field include those listed below:

Government

office

MPI

MONRE MOF

IE

ERAV

EVN PVN VINACOMIN

IPPs

Customers

GDE MOIT

Power Suppliers

1-7

1. Regulate O&M of power facilities and power dispatch

2. Grant permission for electricity tariff

3. Announce projects to promote investments (projects based on the master plans)

4. Approve electricity master plans prepared by provinces or cities under the direct control of the government

b) ERAV: Electricity Regulatory Authority of Vietnam

The Electricity Regulatory Authority of Vietnam (ERAV) was established in November 2005 to assist MOIT in

the management of the power sector and regulates the power market and electricity tariff.

c) IE: Institute of Energy

The Institute of Energy (IE) has been under the control of MOIT since 2007, after being under the Ministry of

Energy and then under the current EVN since 1995. It performs the same duties as before, including the

preparation of energy policies and national and regional power source development plans, as well as research on

electric facilities and equipment. It also assisted the preparation of PDP7.

d) MONRE: Ministry of Natural Resources and Environment

The Ministry of Natural Resources and Environment (MONRE) was established in 2002 through the restructuring

of the governmental organizations, for the purpose of strengthening measures against issues of environmental

pollution and to integrate various environmental administrative functions. Its duties include environment-related

tasks, preparation of environmental regulations, granting permission for exploration and development of mineral

resources, supervision and inspection in the natural resource field, and scientific and technological development

for natural resources.

e) MOF: Ministry of Finance

The Ministry of Finance (MOF) manages the national finance and budget, arranges the government guarantee for

export credits, and offers public financing to those who are eligible through DAF (Development Assistance

Fund).

f) MPI: Ministry of Planning and Investment

The Ministry of Planning and Investment (MPI) is responsible for the management of the national developmental

plans and the investment field, and performs duties below:

1. Prepare the national strategies and socioeconomic developmental plans (long-term, 5-year, yearly plans)

2. Guide and oversee the implementation of policies and related agencies based on the strategies and plans

3. Report to the government of the implementation status of the socioeconomic developmental plans

4. Coordinate between provinces as the contact window for the regional governments

5. Allocate invested money to ministries, agencies and regions based on the development plans

6. Establish and announce plans to invite foreign and domestic investments

7. Coordinate with other organizations such as MOF regarding the investment effect of foreign and domestic

investments

1-8

8. Grant permission to projects home and abroad based on the decisions of the government or prime

minister

9. Coordinate and manage matters regarding ODA and obtained approvals from the prime minister as

needed

g) SBV: State Bank of Vietnam

The State Bank of Vietnam (SBV) manages the foreign exchange allocation system and offers a guarantee for

foreign exchange. It is a financial institute involved in national aids.

h) PPCs: Provincial Peoples Committees

The Provincial Peoples Committees (PPCs) oversee the regional governments including all governmental powers

granted by the central government.

2) Electric power providers

Based on the electric policies of the Vietnamese government, the Vietnam Electricity or EVN has been established

as a state-run company to operate power generation, transmission and distribution systems, by integrating the

power sector. There are other power producers aside from EVN, such as IPP and BOT entities. As of the end of

2013, the installed generating capacity of the EVN Group account for about 60% of the total installed generating

capacity of 30,590,000kW. The IPP/BOT entities are established with 100% foreign capital, combination of

foreign and domestic capitals, or 100% domestic capital. The major IPP entities with 100% domestic capital

include VINACOMIN (Vietnam National Coal - Mineral Industries Holding Corporation Limited) and PVN.

Figure 1-3 Power generation by ownership in 2013

Source: EVN Annual Report 2012-2013

1-9

a) VINACOMIN: Vietnam National Coal - Mineral Industries Holding Corporation Limited

VINACOMIN is a corporation solely owned by the government for the coal and mineral development.

VINACOMIN operates 54 coal mines domestically, accounting for over 95% of coal produced within the country.

It was previously named Vietnam Coal and after the acquisition of Vietnam Mineral in 2005, the company took

the current form. The company group is comprised of 93 companies, with 134,000 employees. One of the

subsidiaries is VINACOMIN Power that implements IPP projects.

b) PVN：Petro Vietnam

Petro Vietnam (PVN) is a company solely owned by the government and is the largest energy company in

Vietnam. PVN’s formal name is Holding Company - Petro Vietnam Oil and Gas Group, but it is known

internationally as Petro Vietnam or PVN. It has its headquarters in Hanoi, and is engaged in a wide range of

businesses including search for oilfields, oil refinement, import and export of oil products, and investments in real

estate and power generation projects.

Table 1-6 shows the power generation facilities as of 2013.

Table 1-6 Installed Capacity of Power Plants in 2013

No Power Plant Number of Units Installed

Capacity (MW) Owner

A Total installed capacity 30,597

I Under EVN's direct

management 6,502

Hydropower 6,502

1 Hoa Binh 8x240 1,920 EVN

2 Son La 6x400 2,400 EVN

3 Tuyen Quang 3x114 342 EVN

4 Ialy 4x180 720 EVN

5 Se San 3 2x130 260 EVN

6 Pleikrong 2x50 100 EVN

7 Se San 4 3x120 360 EVN

8 Tri An 4x100 400 EVN

II EVN Genco1 4,505

a Hydropower 1,965

1 Ban Ve 2x160 320 EVN GENCO1

2 Song Tranh 2 2x95 190 EVN GENCO1

3 Dai Ninh 2x150 300 EVN GENCO1

4 Dong Nai 3 2x90 180 EVN GENCO1

1-10

5 Dong Nai 4 2x170 340 EVN GENCO1

6 Da Nhim 4x40 160 Joint Stocks Co. with

EVNGENCO1's shares

7 Ham Thuan 2x150 300 Joint Stocks Co. with

EVNGENCO1's shares

8 Da Mi 2x87.5 175 Joint Stocks Co. with

EVNGENCO1's shares

b Coal-fired power 2,540

1 Uong Bi 2x55 110 EVN GENCO1

2 Uong Bi (extension) 300 300 EVN GENCO1

3 Uong Bi (extension 2) 330 330 EVN GENCO1

4 Quang Ninh 1 2x300 600 Joint Stocks Co. with

EVNGENCO1's shares

5 Quang Ninh 2 2x300 600 Joint Stocks Co. with

EVNGENCO1's shares

6 Nghi Son 1 2x300 600 EVN GENCO1

III EVN Genco2 3,549

a Hydropower 817

1 Quang Tri 2x32 64 EVN GENCO2

2 Song Ba Ha 2x110 220 EVN GENCO2

3 An Khe-Kanak 2x80+2x6.5 173 EVN GENCO2

4 A Vuong 2x105 210 Joint Stocks Co. with

EVNGENCO2's shares

5 Thac Mo 2x75 150 Joint Stocks Co. with

EVNGENCO2's shares

b Coal-fired power 1,940

1 Pha Lai 1 4x110 440 Joint Stocks Co. with

EVNGENCO2's shares

2 Pha Lai 2 2x300 600 Joint Stocks Co. with

EVNGENCO2's shares

3 Hai Phong 1 2x300 600 Joint Stocks Co. with

EVNGENCO2's shares

4 Hai Phong 2 1x300 300 Joint Stocks Co. with

EVNGENCO2's shares

c FO-fired Thermal Power 528

1 Thu Duc 2x66+1x33 165 EVN GENCO2

2 Can Tho 1x33 33 EVN GENCO2

3 O Mon 1.1 1x330 330 EVN GENCO2

d DO-fired Gas turbine 264

1-11

1 Thu Duc 23.5+15+2x37.5 114 EVN GENCO2

2 Can Tho 4x37.5 150 EVN GENCO2

IV EVN Genco3 4,013

a Hydropower 1,062

1 Ban Chat 2x110 220 EVN GENCO3

2 Buon Kuop 2x140 280 EVN GENCO3

3 Buon Tua Srah 2x43 86 EVN GENCO3

4 Srepok 3 2x110 220 EVN GENCO3

5 Thac Ba 3x40 120 Joint Stocks Co. with

EVNGENCO3's shares

6 Vinh Son 2x33 66 Joint Stocks Co. with

EVNGENCO3's shares

7 Song Hinh 2x35 70 Joint Stocks Co. with

EVNGENCO3's shares

b Coal-fired power 100

1 Ninh Binh 4x25 100 Joint Stocks Co. with

EVNGENCO3's shares

c Gas turbine 2,851

1 Phu My 2.1 2x144+164

+2x138+168 896 EVN GENCO3

2 Phu My 1 3x239+391 1,108 EVN GENCO3

3 Phu My 4 2x145+168 458 EVN GENCO3

4 Ba Ria 2x23.4+6x37.5+58+59 389 Joint Stocks Co. with

EVNGENCO3's shares

B OTHER INVESTOR 12,028

I Hydropower (≥ 30 MW) 2,990

1 Cua Dat 2x48.5 97 Domestic investor

2 Nam Chien 2 2x16 32 Domestic investor

3 Thai An 2x41 82 Domestic investor

4 Su Pan 3x11.5 35 Domestic investor

5 Huong Son 2x16.5 33 Domestic investor

6 A Luoi 2x85 170 Domestic investor

7 Bac Ha 2x45 90 Domestic investor

8 Nho Que 3 2x55 110 Domestic investor

9 Ba Thuoc 40+80 80 Domestic investor

10 Muong Hum 32 32 Domestic investor

11 Chiem Hoa 3x16 48 Domestic investor

12 Ta Co (Nam Cong 2) 30 30 Domestic investor

13 Nam Phang 2x18 36 Domestic investor

1-12

14 Nam Chien 1 2x100 200 Domestic investor

15 Khe Bo 2x50 100 Domestic investor

16 Hua Na 2x90 180 Petro VN

17 Ta Thang 2x30 60 Domestic investor

18 Van Chan 3x19 57 Domestic investor

19 Sesan 3A 2x54 108 Domestic investor

20 Song Con 2 3x20+3 63 Domestic investor

21 Srepok 4 2x40 80 Domestic investor

22 Krong H'nang 2x32 64 Domestic investor

23 Huong Dien 3x27 81 Domestic investor

24 Bac Binh 2x16.5 33 Domestic investor

25 Binh Dien 2x22 44 Domestic investor

26 Za Hung 2x15 30 Domestic investor

27 Dak Psi 4 3x10 30 Domestic investor

28 Se San 4A 3x21 63 Domestic investor

29 Dak R'tih 2x41+2x31 144 Domestic investor

30 Dak Mi 4 2x74+2x21 190 Domestic investor

31 Song Bung 5 2x28.5 57 Domestic investor

32 Song Bung 4A 2x24.5 49 Domestic investor

33 Srepok 4A 1x32 32 Domestic investor

34 Can Don 2x38.8 78 Domestic investor

35 Srokphumieng 2x25.5 51 Domestic investor

36 Da Dang 2x17 34 Domestic investor

37 Dam Bri 1x37.5 37.5 Domestic investor

38 Xekaman 3 (Laos) 2x125 250 Domestic investor

II Small Hydropower

(<30MW) 1,589

1 Small Hydropower in the North 820 Domestic investor

2 Small Hydropower in the Central 657 Domestic investor

3 Small Hydropower in the South 112 Domestic investor

III Coal-fired power 2,478

1 Na Duong 2x55 110 VN Coal & Mineral Co.

2 Cao Ngan 2x57.5 115 VN Coal & Mineral Co.

3 Son Dong 2x110 220 VN Coal & Mineral Co.

4 Cam Pha I 1x330 330 VN Coal & Mineral Co.

5 Cam Pha II 1x330 330 VN Coal & Mineral Co.

6 Mao Khe 2x220 440 VN Coal & Mineral Co.

7 Vung Ang 1 1x623 623 Petro VN

8 Formosa 2x155 310 Foreign investor

1-13

IV Oil fired Power 522

1 Amata 2x6.5 13 Foreign investor

2 Hiep Phuoc 3x125 375 Foreign investor

3 Dung Quat Oil Filter 104 104 Domestic investor

4 Bauxite Aluminum Manufactory 30 30 Domestic investor

V Gas-turbine, Gas Thermal

Power 4,316

1 Phu My 3 733 Foreign investor

2 Phu My 2.2 733 Foreign investor

3 Ca Mau 1 771 Petro VN

4 Ca Mau 2 771 Petro VN

5 Nhon Trach 1 465 Petro VN

6 Nhon Trach 2 750 Petro VN

7 Vedan 72 Foreign investor

8 Dam Phu My 21 Foreign investor

VI Wind power and others 133

1 Tuy Phong 20x1.5 30 Domestic investor

2 Phu Qui 3x2 6 Domestic investor

3 Bac Lieu 10x1.6 16 Domestic investor

4 Gia Lai Sugar 12 12 Domestic investor

5 Ayun Pa Sugar 19.5 20 Domestic investor

6 Ninh Hoa Bagasses 8.3 8 Domestic investor

7 Cam Ranh Bagasses 11.2 11 Domestic investor

8 Soc Trang Sugar 6 6 Domestic investor

9 Bourbon 2x12 24 Foreign investor


1-14

3) Electricity status of Vietnam

a) Power demand

When a country experiences a phase of rapid development, the increase in power demand is usually greater than

the country’s economic growth. Such is the case with Vietnam and the power consumption in Vietnam is

increasing every year by more than 10%. The industry and construction sectors take up about 50% of the national

power consumption and the consumption is expected to be pushed especially by furnace manufacturers that are

planned to be built along the coast and cement factories that are essential in infrastructure development. The

power consumption by the civilian sector accounts for about 40%, and it could show a great increase if home

appliances such as air conditioners become popular in rural regions. To meet such rate of power demand increase,

the power source must be developed with great urgency.

Figure 1-4 Change in Electricity demand

Source: JETRO

Others

Agriculture, forestry and fisheries

Commerce

Residential consumer

Industry

1-15

b) Power supply composition

Figure 1-5 shows the ratio of installed capacities by power source in Vietnam as of 2013. The

country relies heavily on hydropower as evidenced in hydropower generation facilities accounting for about

half the total installed capacity.

Figure 1-5 Power generation by installed capacity in 2013

Source: EVN Annual report 2012-2013

To meet the country’s rapidly increasing power demand, PDP7 aims to increase the installed generating capacity

from 30,590 MW in 2013 to 146,800 MW in 2030, almost quintupling the capacity. The capacity will be increased

by about 10% annually and the composition of power sources will shift from the heavy reliance on hydropower to

coal accounting for over half of the capacity as shown in the figure. By 2030, nuclear power might be added to the

power sources.

Figure 1-6 Power Balance in Vietnam

Source: PDP7

1-16

c) Transmission & distribution losses

Thanks to EVN’s effort to raise transmission & distribution voltage including its main systems, improvements

made on the systems and facility standards, as well as facility renewals, the losses have gone down every year to

less than 9% in recent years.

Figure 1-7 Transmission and distribution losses


Vietnam is narrow but about 2,300km long from north to south, and transmission and distribution is done and

power is exchanged with two 500kV transmission systems and over 20 substations, between the northern, central

and southern regions of the country. However improved, with the transmission loss factor of 9%, it is desirable to

supply power by balancing supply and demand for each area.

1-17

d) Rate of electrification

The electrification of rural Vietnam was pushed in the 1990s and the rate of electrification for households

increased from 50.6% in 1996 to 95.0% in 2009. The main reasons behind the increase include the promotion of

electrification after the establishment of EVN, and the aids recevied from other countries and the World Bank

toward electrification. The topographical features that Vietnam has such as a small number of remote islands and

the population concentrating in big cities seem to have helped.

Figure 1-8 Rural electrification


1-18

(3) Status of the Project Area

1) Geography and administrative bodies

Bac Lieu Province is located in the Mekong Delta region, about 280km southwest of Ho Chi Minh City. It shares

its borders with Can Tho City and Soc Trang Province to the north, and Kien Giang Province and Ca Mau

Province to the west, and faces the East Sea to the south. The province’s annual average temperature is 26 and

climate is very stable. The province also has a vast land suitable to forestation and agriculture. Bac Lieu Province

has one city and 6 districts (the provincial capital Bac Lieu City, Hoa Binh district, Dong Hai district, Gia Rai

district, Hong Dan district, Phuoc Long district and Vinh Loi district), with the total land area of about 246,900

hectares.

Figure 1-9 Map of Bac Lieu province


1-19

2) Land use

Of Bac Lieu Province’s total land area of about 246,900 hectares, about 102,900 hectares (41.6%) are used for

agriculture, about 4,700 hectares (1.9%) are forests, about 4,300 hectares (1.7%) are used as residential plots, and

about 11,000 hectares (4.5%) are used for other special purposes. Much of the land is suitable for farming and

about 98,295 hectares are developed annually to be used as rice paddies or for industrial crop cultivation.

3) Population

Bac Lieu Province has 20 ethnic minorities such as Khmer and ethnic Chinese peoples. The total population was

876,800 as of 2013, and the population density was 355 /km2. The population growth rate from 2005 to 2013 was

about 1.0% on average, almost the same as that for Vietnam.

Table 1-7 Population of Bac Lieu Province

Year 1995 2000 2005 2009 2010 2011 2012 2013

Population 709,500 749,700 812,800 856,800 863,300 873,300 873,400 876,800

Source: General Statistics of Vietnam

4) Industry

According to the 2012 statistics, the main industry in Bac Lieu Province is agriculture, accounting for about

51.39% of the GDP. Agriculture is followed by manufacturing with 24.58% and service industry with 24.03%.

Thanks to its rich water resources, marine product processing is a major industry in Bac Lieu Province and its

production is about 40,000 tons annually.

5) Resources

Bac Lieu Province is the largest salt producer in the Mekong Delta region. About 120,000 tons of salt is produced

every year in the 4,000-hectare salt marsh. With the 56 km-long coastline and fishing ground of 40,000 km2, about

240,000 tons of seafood including shrimp, squids and oysters is caught every year.

Chapter 2 Study Methodology

2-1

(1) Contents of the Study

For the purpose of constructing coal-fired thermal power generation plants in the relevant area in Vietnam, this

study examines the plans for the development of infrastructure that will be necessary for the operation of the

power plants, including those for facilities for receiving imported coal and transmission line connections, as well

as their feasibility. The study also investigates the conditions of the planned construction site, which need to be

considered from the viewpoint of the power plant construction and operation, such as ground, environment and

the situation of the residents in and around the site as well as the necessary measures. Based on the findings of the

study and examinations, and with a view to introduce ultrasuper critical power plants, the study considers the

concept and design of the power generation facilities, technological superiorities of Japanese corporations, and the

Project schedule, conducts financial and economical evaluations in association with power generation plant

construction and operation, and evaluate the feasibility of the Project.

In this study, for the purpose of considering the financing arrangement, items that are deemed necessary to

implement the Project with the use of buyer’s credit, etc. from the Japan Bank for International Cooperation

(JBIC), etc. such as environmental and social considerations and measures are organized categorically and

examined.

1) Study and examination of technological matters

Information is gathered from related documents issued by the counterparts or through field studies including

interviews with related organization and agencies, and research and examination of the technological feasibility

are conducted based on the past performance of supercritical and ultrasuper critical plants of Kyushu Electric

Power.

・Examination of the conditions of the planned construction site towards the development of coal-fired power

generation plants (soil, environment, climate, etc. )

・Feasibility study for the plan for fuel procurement with the utilization of imported coal

・Examination of plans for coal receiving facilities for the utilization of imported coal (port and harbor, etc.)

・Examination of plans for other necessary infrastructures (water, ash disposal, cooling water, transmission lines,

etc.)

・Examination and review of the concept and design for supercritical and ultrasuper critical power generation

facilities and construction schedule, etc.

2) Research and examination of matters on the environmental and social aspects

Information is gathered from related documents issued by the counterparts or through field studies including

interviews with related organization and agencies, and issues that might arise while proceeding with the Project

are extracted and their solutions are examined.

・Examination of the laws, regulations and standards, etc. that are relevant to the matters of environmental and

social considerations in Vietnam

2-2

・Examination of the environmental improvement effects as well as the environmental and social impacts from

the operation of the power generation plants

・Examination of the issues and countermeasures in terms of environmental and social considerations that are

necessary the implementation of the Project, etc.

3) Study and examination of financial and economic feasibility

Financial and economic analyses are carried out for the Project, based on the results of the examination of the

technological, environmental and social aspects (comparison of buyer’s credit, IPP/BOT and yen load assistance

is conducted).

・Calculation of the Project costs for the construction and operation of the power generation plants and the

examination of the financial models

・Preliminary financial and economic analyses, etc.

4) Compilation of the action plan and issues towards the realization of the Project

Based on the examination results above, the results of this study and matters to be suggested towards the next

study for the full-scale formation of the Project are organized categorically.

・Feasibility of the introduction of ultrasuper critical coal-fired thermal power generation technology

・Action plan for the future towards the realization of the Project

(2) Study Methodology and Systems

1) Study methodology

This study was carried out between October 9, 2014 and the end of February, 2015, and included three works on

the site in total, in which discussions with related organization and agencies, collection of existing materials and

data, confirmation of legal systems and frameworks related to the development of power plants, and survey of the

construction site, among other activities, were conducted. Inside Japan, collected data and materials were

organized and analyzed, an outline design of the power generation facilities was created, the Project costs were

roughly calculated, and the Project implementation plan was drawn. This report was prepared based on the results

of these activities.

2) Study structure

The implementation structure for this study is shown in the figure below:

2-3

Figure 2-1 Structure of study group


【Technological and financial analysis - sub】: Takeshi Iida

(Role played in the study and research) ・Sub leader (technology and financial assistant) ・Coal-fired thermal power generation technologies and plan,

field studies and compilation of results

【Economic and financial analysis】: Yasuhiro Maruta

(Role played in the study and research) ・Project cost quantity survey and financial analysis ・Field studies, current condition analysis, and compilation of

results

【Technological matters】: Yoshiro Adachi

(Role played in the study and research) ・Oversees technological matters (mechanical) ・Overall study of coal-fired thermal power generation

technologies and plan, field studies and compilation of results

【Environmental and social analysis】: Norihide Yamane

(Role played in the study and research) ・Environmental impact assessment ・Social consideration analysis

【Civil engineering】: Ngoc Ha Tuan

(Role played in the study and research) ・Civil engineering-related data collection and analysis

【Project manager】: Michio Mihara (Role played in the study and research) ・Oversees the project

【Civil engineering】: Hidenobu Ishimaru

(Role played in the study and research) ・Civil engineering-related data collection and analysis

【Technology (chemical)】: Takayuki Naganuma

(Role played in the study and research) ・Water quality and environmental facilities-related matters ・Data collection and analysis

2-4

(3) Study Schedule

1) Overall schedule

Overall schedule for the study is shown below:

Figure 2-2 Study Schedule

2014 2015

Sep. Oct. Nov Dec. Jan. Feb.

(Work conducted in Japan)

1. Data collection from related documents

created by the counterparts, etc.

2. Plan for necessary infrastructures and

power generation facilities, etc. and

creation and examination of financial

models, etc.

3. Additional examinations and result

compilation, etc.

4. Data organization and other tasks such as

revision of the report done in Japan as

well as reporting

(Work conducted on site)

1. Field studies such as interviews with

related organizations and agencies, etc.

(1st field study)

2. Study of additional data based on the

examination results, etc.

(2nd field study)

3. Explanation of the study and

examination results to the counterparts in

Vietnam


Df/R deadline

Final report

2-5

2) Result of the field studies

a) 1st field study (Oct. 20 – 30, 2014)

The outline of the study and schedule were explained to the local organizations involved and an examination of

the planned site was done.

Table 2-1 1st field study schedule

Day Date Study Group activities

1 Oct. 20 ・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru, Ha): Fukuoka → Ho Chi

Minh

2 Oct. 21 ・Meeting with PECC2

3 Oct. 22

・Travel (Mihara, Iida) : Ho Chi Minh →Hanoi

・Visit to organizations involved (MOIT, IE and JETRO)

・Meeting with PECC2

4 Oct. 23 ・Visit to organizations involved (NPT, Vinacomin and JICA)


5 Oct. 24

・Visit to organizations involved (TEDI, EVN, JBIC, Japanese Embassy, etc.)

・Travel (Mihara, Iida) Hanoi→ Ho Chi Minh


6 Oct. 25 ・Data organization

7 Oct. 26 ・Data organization

8 Oct. 27

・Travel (Mihara, Iida, Adachi, Maruta, Ha, Ishimaru, Yamane) Ho Chi Minh→ Can

Tho

・Visit to organizations involved (GENCO2)

9 Oct. 28

・Travel (Mihara, Maruta, Yamane, Ishimaru, Ha) Can Tho →Bac Lieu

・Site survey and visit to organizations involved (People’s Committee of Bac Lieu)

・Travel (Mihara, Maruta, Yamane, Ishimaru, Ha) Bac Lieu→カマウ

10 Oct. 29 ・Travel (Mihara, Maruta, Yamane, Ishimaru, Ha) Ca Mau→ Ho Chi Minh


11 Oct. 30 ・Meeting with PECC2

12 Oct. 31 ・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru, Ha) Ho Chi Minh →

Fukuoka


2-6

b) 2nd field study (Dec. 3-13, 2014)

The status was reported to the local organizations involved, information was collected, the planned site was

examined again, and the proposal to move the site for the mangrove protection was confirmed.

Table 2-2 2nd field study schedule


1 Dec. 3 ・Travel (Maruta, Iida) Fukuoka →Hanoi

2 Dec. 4 ・Visit to organizations involved (JBIC, JETRO and Sumitomo Corp.)

・Travel (Adachi, Yamane) Fukuoka → Ho Chi Minh

3 Dec. 5

・Visit to organizations involved (IE and GENCO2)

・Travel (Maruta, Iida) Hanoi→ Ho Chi Minh

・Travel (Adachi, Yamane) Ho Chi Minh→ Can Tho

・Visit to organizations involved (GENCO2)

・Travel (Adachi, Yamane) Can Tho → Ho Chi Minh

4 Dec. 6 ・Data organization

5 Dec. 7 ・Data organization

・Travel (Ishimaru, Ha) Fukuoka → Ho Chi Minh

6 Dec. 8


・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru、Ha) Ho Chi Minh → Can

Tho

7 Dec. 9

・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru, Ha) Can Tho →Bac Lieu

・Site survey

・Travel (Iida) Bac Lieu→ Can Tho

8 Dec. 10

・Travel (Iida) Can Tho →Hanoi

・Visit to organizations involved (ADB)

・Travel (Iida) Hanoi→ Ho Chi Minh

・Site survey

・Travel (Mihara, Adachi, Maruta, Yamane, Ishimaru, Ha) Bac Lieu→ Can Tho

9 Dec. 11 ・Travel (Mihara, Adachi, Maruta, Yamane, Ishimaru, Ha) Can Tho → Ho Chi Minh


10 Dec. 12 ・Meeting with PECC2

11 Dec. 13 ・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru, Ha)Ho Chi Minh→

Fukuoka


2-7

c) 3rd field study (Feb. 8-14, 2015)

The study result was reported to the local organizations involved.

Table 2-3 3rd field study schedule


1 Feb. 8 ・Travel (Mihara, Adachi, Iida, Ha) Fukuoka → Hanoi

2 Feb. 9 ・Visit to organizations involved (IE, GDE , EVN and Japanese Embassy)

3 Feb. 10 ・Travel (Mihara, Adachi, Iida, Ha) Hanoi → Ho Chi Minh

4 Feb. 11

・Travel (Mihara, Adachi, Iida, Ha) Ho Chi Minh → Camau

・Visit to organizations involved (People’s Committee of Bac Lieu)

・Travel (Mihara, Adachi, Iida, Ha) Bac Lieu → Can Tho

5 Feb. 12 ・Visit to organizations involved (GENCO2)

・Travel (Mihara, Adachi, Iida, Ha) Can Tho → Ho Chi Minh

6 Feb. 13 ・Meeting with PECC2

・Travel (Mihara, Adachi, Iida, Ha) Ho Chi Minh → Fukuoka

7 Feb. 14 ・Travel (Mihara, Adachi, Iida, Ha) Ho Chi Minh → Fukuoka


Chapter 3 Justification, Objectives and Technical

Feasibility of the Project

3-1

(1) Background and Justification of the Project, etc.

1) Background of the Project

According to the IMF statistics as of October 2014, Vietnam’s economic growth rate is 5.5%, slowing down

compared to the average growth rate of 6.4% for the past ten years. However, demand for electricity remains high,

growing at the rate of 10% or higher, and this trend is expected to continue into the future. To meet this demand,

power sources have been developed pursuant to 7th National Power Development Master Plan No.1208/QD-TTg

(PDP7) which was promulgated on July 21, 2011 by the Ministry of Industry and Trade of Vietnam (MOIT).

According to the plan, the generation capacity up to 40,000MW is slated to be developed by 2015, 75,000MW by

2020, and 138,000MW by 2030. The generation capacity as of the end of 2013 is 30,593MW. As for the ratio to

the total installed capacity as of the end of 2013, hydroelectric power is 48.78%, coal-fired thermal power 23.07%,

gas-fired thermal power 24.29%, and oil-fired thermal power 3.43%, demonstrating that the country is still

developing power sources with heavy reliance on hydroelectric power.

Given this situation, PDP7 aims to increase the ratio of coal-fired thermal power in the future, by working towards

15,000MW (ratio of 35%) by 2015, 36,000MW (ratio of 48%) by 2020, and 72,000MW (ratio of 52%) by 2030.

There is a plan to commence the operation of Vietnam’s first nuclear power plant in 2020 in Ninh Thuan Province

located in the south of the country. On the other hand, PDP7 makes reference to Bac Lieu coal-fired thermal power

plants stating that they are slated to start operation in 2028 and only preliminary studies have been conducted

within MOIT as a future supercritical coal-fired thermal power generation project, and at the time of the

promulgation of PDP7, no investor was selected.

2) Demand forecast and construction plans in PDP7

The trend of power demand increase in recent years is shown in Fig. 3-1:

Figure 3-1 Power demand increase (2007-2013)


3-2

Although the average increase rate between 2007 and 2013 is 12.27%, the construction plans are made based on

the forecasted increase of power demand of 14% for PDP7, which was obtained by referring to the increase rate up

to 2010 (see Figs. 3-2 and 3-3).

Table 3-1 Construction plans published in PDP7 (2011-2020)

No. Plant name

Installed

Capacity

(MW) Investor

Projects operated in 2011 4187

1 Son La # 2,3,4 Hydro power Plant (HPP) 1200 EVN

2 Nam Chien #1 HPP 100 Song Da Corp.

3 Na Le (Bac Ha) #1,2 HPP 90 LICOGI

4 Ngoi Phat HPP 72 IPP

5 A Luoi #1,2 HPP 170 Central HydroPower joint stock company

6 Song Tranh 2 #2 HPP 95 EVN

7 An Khe- Kanak HPP 173 EVN

8 Se San 4A HPP 63

Se San 4A HYDRO POWER JOINT

STOCK COMPANY

9 Dak My 4 HPP 190 IDICO

10 Se Kaman 3 (Laos) HPP 250

VIET LAO POWER JOINT STOCK

COMPANY

11 Dak Rtih HPP 144

CONSTRUCTION CORPORATION

NO.1

12 Dong Nai 3 # 2 HPP 90 EVN

13 Dong Nai 4 # 1 HPP 170 EVN

14 Uong Bi MR#2 Thermal Power Plant (TPP) 300 EVN

15 Cam Pha II TPP 300 TKV

16 Nhon Trach 2 combined gas turbine 750 PVN

Wind Power + Renewable Energy 30

To be operated in 2012 2805

1 Son La #5, 5 HPP 800 EVN

2 Dong Nai 4#2 HPP 170 EVN

3 Nam Chien #2 HPP 100 Song Da Corp.

4 Ban Chat #1,2 HPP 220 EVN

5 Hua Na 1,2 HPP 180

HUA NA HYDROPOWER JOINT

STOCK COMPANY

6 Nho Que 3 #1,2 HPP 110 BITEXCO JOINT STOCK COMPANY

7 Khe Bo #1,2 HPP 100 VNPD

8 Ba Thuoc II #1,2 HPP 80 IPP

3-3

9 Dong Nai 2 HPP 70 IPP

10 Dam Bri HPP 75 IPP

11 An Khanh I# 1 TPP 50

AN KHANH ELECTRICITY JOINT

STOCK COMPANY

12 Vung Ang I #1 TPP 600 PVN

13 Formosa # 2 TPP 150 HUNG NGHIEP FORMOSA CO., LTD



1 Nam Na 2 HPP 66 IPP

2 Dak Rinh #1,2 HPP 125 PVN

3 Sre Pok 4A HPP 64

BUON DON HYDRO POWER JOINT

STOCK COMPANY

4 Hai Phong II # 1 TPP 300 EVN

5 Mao Khe #1,2 TPP 440 TKV

6 An Khanh I# 2 TPP 50


STOCK COMPANY

7 Vung Ang I #2 TPP 600 PVN

8 Nghi Son I#1 TPP 300 EVN

9 Nong Son TPP 30 TKV



1 Nam Na 3 HPP 84 IPP

2 Yen Son HPP 70

BINH MINH

CONSTRUCTION&TOURISM JOINT

STOCK COMPANY

3 Thuong Kontum #1,2 HPP 220

VINH SON - SONG HINH

HYDROPOWER JOINT STOCK

COMPANY

4 Dak Re HPP 60

THIEN TAN HYDROPOWER JOINT

STOCK COMPANY

5 Nam No (Laos) HPP 95 IPP

6 Hai Phong 2 # 2 TPP 300 EVN

7 Nghi Son I#2 TPP 300 EVN

8 Thai Binh II#1 TPP 600 PVN

9 Quang Ninh II#1 TPP 300 EVN

10 Vinh Tan II#1,2 TPP 1200 EVN

11 O Mon I#2 TPP 330 EVN

12 Duyen Hai I#1 HPP 600 EVN



3-4

1 Huoi Quang #1,2 HPP 520 EVN

2 Dong Nai 5 HPP 145 TKV

3 Dong Nai 6 HPP 135 DUC LONG GIA LAI COMPANY

4 Se Ka man 1 (Laos) HPP 290

VIET LAO POWER JOINT STOCK

COMPANY

5 Quang Ninh II#2 TPP 300 EVN

6 Thai Binh II#2 TPP 600 PVN

7 Mong Duong II #1,2 TPP 51200 AES/BOT

8 Luc Nam #1 TPP 50 IPP

9 Duyen Hai IIII#1 TPP 600 EVN

10 Long Phu I#1 TPP 600 PVN

11 Duyen Hai I #2 TPP 600 EVN

12 O Mon III combined gas turbine 750 EVN

13 Cong Thanh #1,2 TPP 600

CONG THANH ELECTRICITY

JOINSTOCK COMPANY



1 Lai Chau #1 HPP 400 EVN

2 Trung Son #1,2 HPP 260 EVN

3 Song Bung 4 HPP 156 EVN

4 Song Bung 2 HPP 0 EVN

5 Dak My 2 HPP 98 IPP

6 Dong Nai 6A HPP 106 DUC LONG GIA LAI COMPANY

7 Hoi Xuan HPP 102 IPP

8 Se Kaman 4 (Laos) HPP 64 BOT

9 Ha Se San 2 (Campodia 50%) HPP 200 EVN-BOT

10 Mong Duong I #1 TPP 500 EVN

11 Thai Binh I#1 TPP 300 EVN

12 Hai Duong #1 TPP 600 JAK RESOURSE - MALAYSIA/BOT

13 An Khanh II#1 TPP 150


STOCK COMPANY

14 Long Phu I#2TPP 600 PVN

15 Vinh Tan I#1,2 TPP 1200 CSG/BOT

16 Duyen Hai III#2 TPP 600 EVN

17 O Mon IV combined gas turbine 750 EVN

18 O Mon II combined gas turbine 750 BOT



1 Lai Chau #2,3 HPP 800 EVN

3-5

2 Se Kong 3A,3B HPP 105+100 Song Da Corp.

3 Thang Long #1 TPP 300

THANG LONG POWER PLANT JOINT

STOCK COMPANY

4 Mong Duong I#2 TPP 500 EVN

5 Thai Binh I#2 TPP 300 EVN

6 Hai Duong #2 TPP 600 JAK RESOURSE - MALAYSIA/BOT

7 Nghi Son II#1,2 TPP 1200 BOT

8 An Khanh II#2 TPP 150


STOCK COMPANY

9 Van Phong I#1 TPP 660 SUMITOMO - HANOICO/BOT

10 Vinh Tan VI #1 TPP 600 EVN

11 Vinh Tan III #1 TPP 660 VTEC 3/BOT

12 Song Hau I#1 TPP 600 PVN



1 Bao Lam HPP 120 Song Da Corp.

2 Nam Sum 1 ( Laos) HPP 90 SAIGON INVEST

3 Se Kong (Laos) HPP 192 EVN-BOT

4 Na Duong II#1,2 TPP 100 TKV

5 Luc Nam #2 TPP 50 IPP

6 Vung Ang II#1 TPP 600 VAPCO/BOT

7 Quang Trach I #1 TPP 600 PVN

8 Nam Dinh I #1 TPP 600 TAIKWANG - KOREA/BOT

9 Van Phong I#2 TPP 660 SUMITOMO - HANOICO/BOT

10 Song Hau I#2 TPP 600 PVN

11 Son My #1,2,3 combined gas turbines 1170 (IP-SOJITZ-PACIFIC)/BOT

12 Duyen Hai II#1 TPP 600 JANAKUASA/BOT

13 Vinh Tan III#2 TPP 660 VTEC 3/BOT

14 Vinh Tan VI #2 TPP 600 EVN

15 Import from China 1000 Depend of import negotiation

Wind Power + Renewable Energy 200 IPP


1 Bac Ai #1 HPP pump storage 300 EVN

2 Dong Phu Yen #1 HPP pump storage 300 XUAN THIEN COMPANY

3 Nam Sum 3 (Laos) HPP 196 SAIGON INVEST

4 Vinh Son II HPP 80 IPP

5 Vung Ang II#2 TPP 600 VAPCO/BOT

6 Quang Trach I #2 TPP 600 PVN

7 Nam Dinh I #2 TPP 600 TAIKWANG - KOREA/BOT

3-6

8 Thang Long #2 TPP 300

THANG LONG POWER PLANT JOINT

STOCK COMPANY

9 Quang Tri #1 TPP 600 IPP/BOT

10 Duyen Hai II#2 TPP 600 JANAKUASA/BOT

11 Duyen Hai III#3 (MR) TPP 600 EVN

12 Kien Luong 1#1 TPP 600 TAN TAO

13 Son my 1#14,5 combined gas turbines 780 (IP-SOJITZ-PACIFIC)/BOT

Hiep Phuoc TPP stops working -375

14 Import from China 1000 Depend of import negotiation

Wind Power + Renewable Energy 230 IPP


1 Dong Phu Yen #2,3 HPP pump storage 600 XUAN THIEN COMPANY

2 Bac Ai #2,3 HPP pump storage 600 EVN

3 Nam Mo I (Nam Kan-Laos) HPP 72 EVNI

4 Quang Tri #2 HPP 600 IPP/BOT

5 M.Trung #1 (Quang Tri or Quang Ngai) TBKHH 450

6 Ninh Thuan I# 1 Nuclear Power Plant (NPP) 1000 EVN

7 Ninh Thuan II# 1 Nuclear Power Plant (NPP) 1000 EVN

8 Vinh Tan III#3 TPP 660 VTEC 3/BOT

9 Kien Luong I#2 TPP 600 TAN TAO

Thu Duc TPP stops working -272


Source: Prepared by Study Group based on the PDP7 No.1208/QD-TTg (Jul. 21, 2011)

Table 3-2 Construction plans published in PDP7 (2011-2020)

No. Plant name

Installed

Capacity

(MW) Investor


1 Dong Phu Yen #4 pump storage HPP 300 XUAN THIEN COMPANY

2 Bac Ai #4 pump storage HPP 300 EVN

3 Ha Se San 1 (Cambodia) HPP 90 EVNI

4 Sekong (Cambodia) HPP 150 EVNI

5 Hai Phong III#1 TPP 600 TKV

6 Van Phong II#1 TPP 660

7 Son My II#1,2 combined gas turbines 780

8 Ninh Thuan I#2 nuclear PP 1000

9 Ninh Thuan II#2 nuclear PP 1000

3-7

10 Imported from China 1000

Ninh Binh I TPP stops working -100

Uong Bi I TPP stops working -105

Can Tho TPP stops working -150



1 Nam Theun I (Laos) HPP 400 EVN-BOT


3 Cam Pha III#1,2 TPP 270 TKV

4 Quynh Lap I #1 600 TKV

5 Long Phu II#1 TPP 600 SONG DA CORP

6 Van Phong II#2 TPP 660

7 Son My II#3,4,5 combined gas turbines 1170

8 No. III#1 nuclear PP 1000 EVN



1 Ha Se San 3 (Cambodia) HPP 180 BOT

2 Quang Trach II#1 TPP 600

3 Quynh Lap I #2 600 TKV

4

Central #2 (Quang Tri or Quang Ngai) combined

gas turbine 450

5 Kien Luong II#1 TPP 600

6 Long Phu II#2 TPP 600 SONG DA CORP

7 No. III#2 nuclear PP 1000 EVN



1 Northen II#1 pump storage HPP 300

2 Don Duong #1,2 pump storage HPP 600 EVN

3 Quang Trach II#2 TPP 600

4 Phu Tho #1 TPP 300

5

Central #3 (Quang Tri or Quang Ngai) combined

gas turbine 450

6 Long An #1,2 TPP 1200

7 Kien Luong II#2 TPP 600




2 Don Duong #3,4 pump storage HPP 600 EVN


3-8

4 Nam Dinh II#1 TPP 600 BOT

5 Phu Tho #2 TPP 300

6 Long Phu III#1 TPP 1000 PVN

7 Southern #1,2 combined gas turbines 1500




2 Vung Ang III#1 TPP 600 BOT

3 Nam Dinh II#2 TPP 600 BOT

4 Bac Giang #1 TPP 300

5 Binh Dinh I#1 coal TPP 600

6 Long Phu III#2 TPP 1000 PVN

7 No. IV#1 nuclear PP 1000

8 HPP imported from Laos 550



1 Vung Ang III#2,3 TPP 1200 BOT

2 Bac Giang #2 TPP 300

3 Kien Luong III #1 TPP 1000

4 Song Hau II #1 TPP 1000

5 Binh Dinh I#2 coal TPP 600

6 NuclearPP No. IV#2 1000

7 HPP imported from Laos 550



1 Ninh Son pump storage HPP #1 300

2 Vung Ang III #4 TPP 600 BOT

3 Quynh Lap II#1,2 TPP 1200

4 Song Hau II #2 TPP 1000

5 Kien Luong III #2 TPP 1000

6 Bac Lieu coal TPP #1,2 1200

7 Central nuclearPP I #1 1350



1 Ninh Son pump storage HPP #2,3 600

2 Yen Hung #1,2 TPP 1200

3 Uong Bi III #1,2 TPP 1200

4 Song Hau III #1,2 2000

5 Binh Dinh coal TPP #1,2 2000

3-9

6 An Giang coal TPP #1,2 2000



1 Ninh Son pump storage HPP #4 300

2 Northen coal TPP 1000MW #1,2 2000

3 Southen coal TPP 1000MW#1,2,3,4,5 5000

4 Central nuclearPP I#2 1350


Source: Prepared by the Study Group based on PDP7 No.1208/QD-TTg (Jul. 21, 2011)

As of now, the rate of demand increase for the future is expected to be about 10%; thus, the stable power supply

was expected if the plants could start operation according to the schedule set in PDP7.

3) Discussion of issues of PDP7

Ever since the promulgation of PDP7, the development of many power plants, mainly coal-fired thermal power

projects were launched including IPP implemented by EVN and other government-run companies, as well as BOT

cases in which foreign investors participated. However, many of the 600MW large-scale coal-fired thermal power

plants failed to start operation according to the plan, due to issues related to the funding ability of electric power

providers, and insufficient ability of EPC contractors such as those from China to manage construction.

Specifically, for Nghi Son 2 coal-fired thermal power plant (600MW×2 units) in Thanh Hoa Province in the north

central region of the country, for which the investors were selected through an international competitive bidding,

PPA has not been concluded even after two years after the bidding due to difficulty in negotiation with the

Vietnamese government. With regard to Long Phu 1 coal-fired thermal power plant in Soc Trang Province in the

south (currently under development by PVN), the start of its operation is likely to be delayed significantly from

the original planned date, due to difficulties and issues in negotiation with the EPC contractor that was contracted

in December 2013, such as the inability to pay guarantee deposits. For many of the other large-scale coal-fired

thermal power plants, the development and construction have not progressed according to the plan.

Furthermore, China constructed rigs for oil drilling in May 2014 in Vietnam’s territorial waters without prior

consent, triggering a riot. It in turn caused issues that affected the China-Vietnam relationship, where Chinese

investors and EPC contractors pulled out en masse. The construction of many of the coal-fired power plants that

were ordered to Chinese companies was ceased temporarily, saddling Vietnam with huge risks associated with

power source development in the future.

Aside from coal-fired thermal power, gas-fired thermal power has suffered similar issues. Chevron (USA), the

operator of the Block B gas field which was expected to supply gas to O Mon power generation complex in the

south, stated its withdrawal due to issues in negotiating price with Petro Vietnam and those associated with a

conversion guarantee from the Vietnamese government, undermining the prospect for the development of a power

source equivalent to 3,000MW.

3-10

Given these situations, power supply in 2017 and after is expected to be tight especially in the south, and the

Vietnamese government issued a prime minister decision No.2414 (Nov. 2013) and designated Vinh Tan 4

coal-fired themal power palnt (developed by EVNGenco3, 1200MW) in Bình Thuan Province, Long Phu 1

coal-fired thermal power plant (developed by PVN, 1200MW) in Soc Trang Province and Duyen Hai 3 extension

coal-fired thermal power plant (developed by EVNGenco1, 660MW) in Tra Vinh Province giving them the utmost

priority, and urged early development of these power sources through measures such as allowing the selection of

EPC contractors without bidding.

4) Scope and beneficiaries of the Project

Since there is a concern that the development of projects may be delayed as described above, Bac Lieu coal-fed

thermal power plant project has drawn attention since around the end of 2013 as a project whose development

needs to be accelerated so that its operation can start sooner than 2028 which was the time planned for its

commencement of operation at the promulgation of PDP7.

This Project is Phase 1 (1,200MW) of the power generation complex planned for the Dong Hai area, Bac Lieu

Province in southern Vietnam with the total output of 3,600MW, and its scope includes the construction of

coal-fired thermal power generation plants, port facilities for coal transportation and water intake and discharge

facilities. Once completed, it is expected to supply electricity not only to the customers in Ho Chi Minh, a city of

commerce, but also to the customers in southern Vietnam in and around Bac Lieu Province, thereby improving

energy security.



coal TPP; thus the job creation in southern Vietnam is also anticipated.

5) Effects and impacts from the Project implementation

The Project is planned as coal-fired thermal power project that utilizes imported coal, for which a proposal can be

made to adopt ultrasuper critical technology as the first project of the kind in Vietnam by utilizing eco-friendly

coal-fired thermal power technology that Japan takes pride in. By adopting the idea, it can contribute to the

solving of the issue of electric power shortage and help reduce coal use more than the supercritical power

generation can and thus environmental load.

Thanks to the effect of the projects with utmost priority above, the first supercritical coal-fired thermal power

generation plants in Vietnam are planned to start operation around 2018. Thus, this Project is planned for around

2023, which will allow the country to experience the operation and maintenance of supercritical thermal power

plants for five years and give its participants enough time to systematically train the staff of the operating entity.

Also, the adoption of the ultrasuper critical technology for this Project is expected to encourage the participation

of private funds and other donors and promote the full-fledged dissemination of ultrasuper critical technology in

Vietnam.

3-11

6) Comparison of alternatives

In the past, the power source development in Vietnam had relied heavily on hydroelectric power. However, the

country has experienced electric power shortage caused by drought in April and May every year; therefore

currently, it is working to expand thermal power generation plants.

Thermal power generation mainly refers to either gas-fired thermal power or coal-fired thermal power. With

regard to gas-fired thermal power, the development of domestic gas fields requires negotiation with business

entities responsible for the development, a process that could take a long time. LNG-fired thermal power plants

are planned; however, there is a tendency to be prudent about importing LNG into Vietnam where electric tariff is

low, making LNG-fired thermal power to be a matter to be examined from the mid- to long-term point of view.

Regarding coal-fired thermal power, there are many subcritical coal-fired thermal power plants in the north, which

use coal mined in Vietnam. However, the mining method has been switched to underground coal mining since coal

was depleted in the areas where open-pit mining was conducted, and as a result the coal mining cost has increased

to the point where the price of domestic coal is high in comparison to imported coal of equivalent quality. In this

context, coal-fired thermal power in the north with the use of domestic coal has a limitation. Also, due to reasons

given above, Vietnam is expected to become a coal importing country around 2016. Therefore, in order to

facilitate power source development to meet rapidly increasing power demand, it seems most desirable to develop

coal-fired thermal power plants that use imported coal.

PDP7 plans many coal-fired thermal power plants that use imported coal in the south, which have not been

developed according to their schedule. However, the operating entity for the Project is expected to be EVN that

takes ultimate responsibility for power supply and demand. Therefore, it seems possible to adopt ultrasuper critical

technology and use funds from Japan, thereby working towards the commencement of operation according to

schedule.

(2) For Sophisticated and Streamlined Energy Use

1) Technology adopted for coal-fired thermal power generation in Vietnam

Vietnam has mainly exported high-quality anthracite coal mined in the Quang Ninh area in the northeast region of

the country to Japan and South Korea while generating electricity using low-quality anthracite coal obtained in the

coal preparation process through subcritical coal-fired power generation, or using subbituminous coal that is

produced in the coal field in the Red River delta through subcritical coal-fired thermal power generation.

The range of boiler output has been on the increase from 110MW, 300MW to 600MW per unit, with the capacity

of 600MW being the majority today. The power plants of this capacity include subcritical coal-fired thermal power

plants such as Vung Ang 1 coal-fired thermal power plant in Ha Tĩnh Province in the north central region of the

nation and Thai Binh 2 coal-fired thermal power plant in Thai Bình Province in the northern region.

However, the efficiency of these coal-fired thermal power plants is low at around 30%, and their operation will be

3-12

challenged since the use of domestic coal will be difficult in the future and from the standpoint of reduction of

environmental load. In this context, more plans are drawn in recent years for supercritical coal-fired thermal power

generation plants that use imported coal, especially for the central to southern regions on the country. Vinh Tan 4

coal-fired themal power palnt in Bình Thuan Province in the south central region of the country and Duyen Hai 3

extension coal-fired thermal power plant in Tra Vinh Province in the southern region are being developed as

supercritical coal-fired thermal power plants with two units with 600MW each. Vietnam’s first supercritical

coal-fired thermal power plants are planned to start operation around 2017-2018, which should allow the country

an ample opportunity to experience the difference between subcritical and supercritical thermal power generation

in terms of technology and operation.

2) Technology adopted for the Project

This project was also planned as a coal-fired thermal power generation plant that uses imported coal at the time of

the PDP7 promulgation; however discussion as to choosing between supercritical and ultrasuper critical

technology had not gone far.

These days however, most of the supercritical coal-fired thermal power plants are planned to start operation

around 2020, and the Vietnamese government is deliberating the adoption of ultrasuper critical coal-fired thermal

power as projects for 2020 or later. At the interviews conducted during the field studies, GDE was observed to be

examining ultrasuper critical thermal power seriously, and the comparative investigation of supercritical and

ultrasuper critical that is submitted in this report is anxiously awaited. EVN also indicated its willingness to be the

one to implement Vietnam’s first ultrasuper critical thermal power project. Once a formal approval was given as

an investor in the revised PDP7, it wishes to prepare investment reports (detailed FS), consider prices and timing

for implementation, and decide on the adoption of ultrasuper critical technology. Thanks to the studies backed by

the Japanese government regarding the adoption of ultrasuper critical technology in Vietnam, the level of

recognition and understanding of the necessity for the ultrasuper critical technology has increased in the country.

3) For sophisticated and streamlined energy use

Assuming that Phase 1 is realized by adopting ultrasuper critical technology with the use of funds from Japan,

some of the direct benefits this project might bring include highly-efficient and stable power supply that will solve

the issue of electric power shortage especially in the south of the country and potential for the rapid acceleration of

adoption of ultrasuper critical technology in IPP/BOT projects planned for the following phases or in other areas.

It could also enhance the level and knowhow of the Vietnamese engineers regarding the operation of ultrasuper

critical coal-fired thermal power generation plants.

Indirect benefits might be national benefits which are obtained by controlling the consumption of domestic coal in

subcritical thermal power that currently uses domestic coal for power generation and thus ensuring coal export,

which is encouraged by promoting high-efficiency thermal power with the use of imported coal. Also diversifying

of coal procurement sources, Vietnam might be able to step out of excessive reliance on unstable hydroelectric

power, which should improve energy security for the whole country.

3-13

(3) Examinations Needed for the Determination of the Project Contents

1) Power demand estimation

To meet the increasing demand for electricity triggered by rapid economic growth, the Vietnamese government

promulgated PDP7 in 2011. In PDP7, which is currently being revised, offered estimated power demand up to

2030. The power demand to 2030 estimated as this point is shown in Table 3-3.

As the table indicates, there is enough power if looking at the entire Vietnam; however in southern Vietnam where

the Project is planned to be constructed, chronic power shortage is expected until 2030 and transmission from the

northern and central regions of the country is required. As Vietnam is elongated from north to south, transmission

losses are great, and it is desirable to maintain balance between power supply and demand in each region. Based

on the lower output from hydroelectric power plants during dry seasons, delay in the development of many power

plants, forced outages, etc. in the southern region, the steady development of the Project is anxiously awaited.

Table 3-3 Energy balance (Unit: GWh)

No. Year 2015 2020 2025 2030

Northern region

A Power generation 89,325 150,081 189,212 240,504

B Load Demand 62,527 106,471 162,607 232,733

C Redundancy(+) /

Shortage(-) (GWh) 26,799 43,609 26,605 7,771

Central region


B Load Demand 15,310 25,718 39,606 58,685

C Redundancy(+) /

Shortage(-) (GWh) 5,836 6,830 37,453 46,012

Southern region


B Load Demand 80,634 130,225 191,324 268,867

3-14

No. Year 2015 2020 2025 2030

C Redundancy(+) /

Shortage(-) (GWh) -9,592 -13,024 -5,510 -8

Whole Country


B Load Demand 158,471 262,414 393,537 560,285

C Redundancy(+) /

Shortage(-) (GWh) 23,043 37,415 58,548 53,775

Balance

A Load Demand 158,471 262,414 393,537 560,285

B Redundancy(+) /

Shortage(-) (GWh) 23,043 37,415 58,548

53,775

Storage ratio (%) 14.5% 14.3% 14.9% 9.6%

Source: Presented by study group based on the data of Vietnamese consultants

2) Understanding and analyzing issues for examining and determining the Project contents

a) Status of planned power plant site

a-1) Geography and topography

Bac Lieu Province where the planned power plant site is located in the Mekong Delta in the southern Vietnam

region. Its land is flat for the most part and the average elevation is 0.8m above sea level. Some areas inland have

lower altitude than the coastal area and there are two distinct characteristics in the inland area as follows:

－With the altitude of 0.4m - 0.8m on average, the southern side of the National Highway 1A have a higher

elevation than the northern side. There are many sand hills that are not connected and the land is sloped from

the sea side to the inland side.

－ The altitude on the northern side of the National highway 1A is 0.2m - 0.3m on average. The mean gradient for

the entire province is 1 - 1.5cm/ km.

The planned power plant site is comprised of mangrove forests that run along the coast and spread inland in some

areas, aqua-culture ponds for shrimp and salt fields. There are many, wide water ways that run from north to south

in the province, and the water from the rivers and water ways flows into estuaries such as Ganh Hao and Cai

Cung.

a-2) Geology

During the preliminary study conducted for the area in 2010, a boring survey was done at five spots as shown in

3-15

the table below, which indicates the drilled length and boring spots. The spots are given as locations for planned

facilities.

Table 3-4 Boring locations

NO. Length

drilled (m)

Spot

BL-1 50.0 Coal storage yard

BL-2 80.0 Switchyard

BL-3 80.0 Power plant premises

BL-4 50.0 Water intake

BL-5 40.0 Ash yard

Total 300.0


Based on the boring survey data, there are roughly four types of geological layers in the area. Each of the four

layers is summarized below:

The first layer is back-filled soil and consists of soft clay mixed with grass roots. This layer has the thickness of

0.7 - 1.7m and is rather thin. The N value is 0 to 1 and the layer has very small strength.

The second layer is comprised of deposited materials from the sea and marsh, and has brown or black clay, humus,

peat, etc. This layer has the thickness of 24-30m. The N value is small at 5 or less to the depth of 20- 30m and is

larger at 16-22 near the third layer.

The third layer is sediment from the sea, and has brownish yellow or brown medium to hard clay, fine sand, etc.

The thickness of this layer is about 12-24m. The N value varies from 19 to 49 but mostly 25- 30.

The fourth layer is also sediment from the sea and made of greenish brown or yellow, hard and fine sand, etc. The

thickness of this layer is unclear. The N value varies from 19 to 37 but mostly 30 or more.

The ground water level is very high at 0.3 - 1.2m.

a-3) Ambient temperature

Table 3-5 Ambient Temperature（℃）

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Year

Ave 25.3 26.0 27.3 28.5 28.3 27.5 27.1 26.9 26.7 26.6 26.5 25.5 26.8

Max 34.3 33.3 34.6 36.7 36.5 35.7 33.6 33.7 34.2 33.3 32.6 32.5 36.7

Min 17.1 18.3 18.8 21.4 22.0 21.7 21.4 21.4 21.8 21.7 19.0 16.4 16.4

Source：Presented by study group based on the data of Vietnamese consultants

a-4) Ambient pressure

Table 3-6 Ambient pressure (mmbar)

3-16


Ave 1012 1011 1010 1009 1008 1008 1008 1008 1009 1038 1010 1011 1012

Max 1018 1017 1020 1014 1013 1013 1014 1014 1014 1015 1016 1017 1020

Min 1006 1004 1004 974 1003 971 1003 1003 972 1004 973 1005 971


a-5) Relative humidity

Table 3-7 Relative humidity (%)


Ave 81 80 79 79 84 86 87 88 89 89 87 84 84

Min 32 36 44 44 47 50 55 48 50 52 46 46 32


a-6) Sea water temperature

Since there is no data of sea water temperature around planned area of power plant, sea water temperature data

(Vung Tau, 1979-2013) relatively near the planned are is used.

Table 3-8 Sea water temperature (℃)


Ave 26.4 26.5 27.7 29.3 30.0 29.4 28.6 28.4 28.5 28.8 28.3 27.2 28.3

High 29.5 30.0 31.5 32.1 32.5 32.2 31.8 31.4 31.9 31.6 31.0 30.3 32.5

Low 23.8 24.0 24.1 25.2 26.7 25.4 25.6 25.0 24.0 24.7 24.0 24.8 23.8


a-7) Tide level and waves

Table 3-9 Average Tidal level（㎝）

P (%) 5 10 20 25 50 70 75 90 95

Htb 28 20 12 9 1 -4 -5 -8 -9


Table 3-10 Maximum Tidal Level（㎝）

P (%) 0.5 1 2 3 4 5 10 20 50

Hmax 246 239 232 227 225 222 213 204 189


3-17

Table 3-11 Minimum Tidal Level（㎝）

P (%) 50 70 75 80 90 95 97 98 99

Hmax -229 -235 -237 -238 -243 -245 -247 -249 -250


Since there is no wave height data for the sea near the planned power plant side in Bac Lieu, the data from

the Con Dao station which is 100km to the east from the planned site is used.

Table 3-12 Maximum Wave (Con Dao station)

P (%) 0.5 1 2 3 4 5 10 20 50

h.max.p (m) 4.13 3.62 3.13 2.83 2.66 2.49 2.03 1.64 1.24


a-8) Rainfall amount

Table 3-13 Rainfall amount (Bac Lieu Station 1980-2013)


Rainfall

amount 4.8 3.7 15.5 57.6 203.3 281.2 273.3 277.5 308.2 306.4 173.3 42.6 1947

No. of

date 2 1 2 5 17 21 22 22 23 22 14 6 157


a-9) Wind direction and speed

Table 3-14 Wind direction and speed (Bac Lieu Station 1980-2013)

Wind direction Calm N NE E SE S SW W NW

Frequency (%) 22.0 5.0 10.6 20.2 6.7 6.9 15.2 8.6 4.9

Average wind speed (m/s)

－ 2.3 2.9 3.1 2.8 2.6 2.4 2.7 2.7


Table 3-15 wind direction and speed during the dry season (Bac Lieu Station 1980-2013)


Frequency (%) 18.0 5.8 16.1 40.1 11.5 4.4 1.2 0.5 2.3


－ 2.3 3.2 3.2 2.9 2.6 1.9 1.6 2.2


3-18

Table 3-16 wind direction and speed during the rainy season(Bac Lieu Station 1980-2013)


Frequency (%) 24.8 4.3 6.7 6.1 3.3 8.6 25.0 14.3 6.8


－ 2.2 2.5 2.6 2.4 2.6 2.4 2.8 2.8


b) Procurement of water for plant use

b-1) Cooling water

It is planned to obtain cooling water for the plants from the sea. However, since the sea near the planned site is in

the Mekong Delta region and has shoals, water must be taken from the area 2-3 km away from the coast during the

lowest tide. Also, in order to prevent the intake of thermal effluent, levees or similar facility must be built to

separate the area of the sea for water intake and for discharge.

Table 3-17 Estimated Cooling Water Requirement for Power Plant

600MW-class

SC plant

600MW-class

USC plant

1,000MW-class

USC plant

Condenser cooling water 91,769 m3/h

×2 units

88,900 m3/h

×2 units

134,334 m3/h

×1 unit

Water for desulfurization

equipment (sea water

desulfurization)

8,052 m3/h

×2 units

7,644 m3/h

×2 units

11,542 m3/h

×1 unit

Required cooling water 199,642 m3/h 193,088 m3/h 145,876 m3/h


b-2) Water for plant use

b-2-1) Raw water procurement plan

There are several ways to procure raw water to be used in the power plants, including procuring water from a

tributary of the Hau River via the Quan Lo-Phung Hiep water way, that from local irrigation canals, using sea

water with the utilization of seawater desalination units, and procuring water from the subterranean water veins.

For this Project, the procurement plan is made mainly based on the idea to obtain water via the Quan Lo-Phung

Hiep water way, which should offer a relatively stable water supply, supplemented by the introduction of seawater

desalination units.

3-19

Table 3-18 Raw Water Procurement Option for Power Plant

Water procurement plan for plant use Outline and issues

Procurement via the Quan Lo-Phung

Hiep water way

Water is obtained from a tributary of the Hau River via the Quan

Lo-Phung Hiep water way. The necessary amount of water might not be

obtained during dry seasons after the start of operation; thus additional

measures such as the use of seawater desalination units might be needed.

Procurement from local irrigation

canals

Water is obtained from irrigation canals used in the area. The water

quality is not stable since saline concentration is controlled to supply

water to shrimp farms and effluent is discharged.

Using sea water with the utilization

of seawater desalination units

Water from the nearby sea is used with the utilization of seawater

desalination units. This method could raise power generation costs.

Procurement of water from the

subterranean water veins

Water is obtained from the depth of 80m-100m. However, the use of

groundwater is limited to domestic use, and cannot be used for the plant.


b-2-2) Outline of the Quan Lo-Phung Hiep water way

The Quan Lo-Phung Hiep water way was created to use the river water from the Hau River for the irrigation for

aqua-farming, agriculture, etc. in the area.

Table 3-19 Outline of the Quan Lo-Phung Hiep Channel

River grade Length

(km)

Actual river

width (m)

Depth

(m)

Sedimentation

rate (m/year)

III 105 20.40 1.7-2.2 0.20


3-20

Figure 3-2 Location Map from Hau river to planned area of power plant


To use river water from the water way for the Project, water is taken from the Vinh My canal which branches out

from the water way, pumped up and sent to the planned power plant site via pipeline.

The relative location of the Vinh My canal to the planned power plant site, and the water quality are shown below:

3-21

Figure 3-3 Location Map from Quan Lo-Phung Hiep channel to planned area of power plant


Table 3-20 Surface water quality at the Vinh My canal

No. Item Unit Value Measurement method

1 pH - 7.28 TCVN 6492 - 1999

2 Conductivity ms/cm 0.36 LF 330/SET Machine

3 Suspended solids mg/L 16 TCVN 6053 - 1996

4 Dissolved matter mg/L 259 TCVN 6053 - 1996

5 total alkali (CaCO3) mmol/L 0.70 SMEWW 2320 B

6 Hardness (CaCO3) mmol/L 0.57 SMEWW 2340 C

7 Carbonate hardness mmol/L 0.40 SMEWW 2340 C

3-22

No. Item Unit Value Measurement method

8 Ba2+ mg/L 0.98 SMEWW 308

9 Ca2+ mg/L 9.22 SMEWW 3500 Ca - D

10 Mg2+ mg/L 8.27 SMEWW 3500 Mg - E

11 Na+ mg/L 55.00 TCVN 6196 - 3: 2000

12 K+ mg/L 5.35 TCVN 6196 - 3: 2000

13 Fe2+ mg/L 0.14 TCVN 6177 - 1996

14 Fe3+ mg/L 1.95 TCVN 6177 - 1996

15 NH4+ mg/L 0.37 TCVN 5988 - 1995

16 Al3+ mg/L 0.26 TCVN 4579 - 1988

17 COD mg/L 24 TCVN 6491 - 1999

18 BOD mg/L 2.2 TCVN 6001 - 1995

19 Total silica mg/L 16.80 SMEWW 425 - C

20 Activated silica mg/L 14.57 SMEWW 425 - C

21 HCO3- mg/L 85.43 SMEWW 2320 B

22 Cl- mg/L 81.54 SMEWW 4500 - Cl - B

23 SO42- mg/L 12.01 TCVN 6200 - 1996

24 NO3- mg/L 1.73 TCVN 6180 - 1996

25 NO2- mg/L 0.75 TCVN 6178 - 1996

26 PO43- mg/L 0.26 SMEWW 4500 - P - C

27 Sulfur mg/L 0.01 SMEWW 427

28 CO2 free mg/L 6.60 TCXD 81: 1981


Regarding the introduction of seawater desalination units, water intake from nearby sea area is assumed. The sea

water quality is as given follows:

Table 3-21 Sea water quality (for the use of seawater desalination units)

Item Unit Value Analysis method

1 pH - 7.47 TCVN 6492 - 1999

2 EC ms/cm 22.80 Machine: LF 330/SET

3 Suspended solids mg/L 5 TCVN 6053 - 1996

4 Dissolved matter mg/L 15822 TCVN 6053 - 1996

3-23

Item Unit Value Analysis method

5 Total alkali (CaCO3) mmol/L 1.15 SMEWW 2320 B

6 Hardness (CaCO3) mmol/L 35.40 SMEWW 2340 C

7 Carbonate hardness(CaCO3) mmol/L 0.84 SMEWW 2340 C

8 Ba2+ mg/L 1.21 SMEWW 308

9 Ca2+ mg/L 160.32 SMEWW 3500 Ca - D

10 Mg2+ mg/L 763.65 SMEWW 3500 Mg - E

11 Na+ mg/L 4526.32 TCVN 6196 - 3: 2000

12 K+ mg/L 189.47 TCVN 6196 - 3: 2000

13 Fe2+ mg/L KPH TCVN 6177 - 1996

14 Fe3+ mg/L 0.12 TCVN 6177 - 1996

15 NH4+ mg/L KPH TCVN 5988 - 1995

16 Al3+ mg/L KPH TCVN 4579 - 1988

17 COD mg/L 425 TCVN 6491 - 1999

18 BOD mg/L 13.6 TCVN 6001 - 1995

19 Total silica mg/L 7.02 SMEWW 425 - C

20 Activated silica mg/L 5.29 SMEWW 425 - C

21 HCO3- mg/L 140.35 SMEWW 2320 B

22 Cl- mg/L 8508.00 SMEWW 4500 - Cl - B

23 SO42- mg/L 1479.32 TCVN 6200 - 1996

24 NO3- mg/L 0.55 TCVN 6180 - 1996

25 NO2- mg/L 0.58 TCVN 6178 - 1996

26 PO43- mg/L 0.12 SMEWW 4500 - P - C

27 Sulfur mg/L KPH SMEWW 427

28 CO2 free mg/L 7.04 TCXD 81: 1981


c) Status and developmental plans for the transmission systems

c-1) Current grid status in Vietnam

The major power grids in Vietnam include 500kV transmission lines that run the length of about 6,737km from

north to south and play a very important role in ensuring reliability of power transport. Today, the transmission

lines stretches from Son La in the northern region to Phu Lam and O Mon in the southern region via Quang Ninh,

Hoa Binh and Da Nang, and play a critical role as an integrated infrastructure for power transport in Vietnam.

3-24

Figure 3-4 Main Power Transmission Grid in Vietnam (2014)


With regard to power flow as of 2013, power flow from the northern and central regions to the southern region is

significant since the construction of new power plants in the southern region has not progressed as planned. Also,

central Vietnam has many hydroelectric power plants and during rainy seasons when those hydroelectric plants

operate at a high rate, the power flow changes and electricity is sent from Vietnam’s central region to northern and

southern regions.

The southern region receives power from the northern and central regions throughout the year, and a high load is

imposed at all times on the 500kV-transmission lines in the Pleiku - Di Linh - Tan Dinh section and Dak Nong -

Phu Lam section. During the rainy seasons when hydroelectric plants operate at a higher rate, the amount of

electricity sent out from Vietnam’s central region goes up, increasing the load on the 500kV-transmission lines in

the sections between Nho Quan and Ha Tinh and between Ha Tinh and Da Nang.

The 220kV and 110kV transmission systems supply power within the regions, and have two-circuit transmission

lines or circular transmission networks to continue stable operation. However, many of the existing facilities have

been in service for a long time since the start of operation and do not have enough margins in capacity considering

the current power demand. If a fault occurs at a power plant, some facilities might experience overload.

500kV transmission line total length 6,737 km

220kV transmission line total length 12,251 km

No. of 500kV substations 21 地点

No. of 220kV substations 77 地点

500kV transformer total capacity 20,250 MVA



Shunt capacity/SVC: total capacity 4,285 MVar

Series reactor total capacity 3,750 MVar

3-25

Table 3-22 Estimated energy balance in Vietnam for 2015

Generated output

（GWh）

Power demand

（GWh）

Reserve capability (+)

/Deficiency (-)

Vietnam northern region 89,325 62,527 +26,799

Vietnam central region 21,147 15,310 +5,836

Vietnam southern region 71,042 80,634 -9,592

Entire Vietnam 181,514 158,471 23,043（14.5%）


c-2) Existing power sources and power supply status in the southern region of Vietnam

In the southern region of Vietnam, the power supply capacity is not sufficient to meet the demand, and even

though the construction of many new power plants has been planned, the plans have not been carried out

according to schedule due to issues including those with China. The region is still in need of power transmitted

from other regions.

Figure 3-5 500kV/220kV Power Grid around southern area of Vietnam (2014)


3-26

The power supply and demand in the southern region of Vietnam for 2015 are estimated as follows:

Table 3-23 Estimated power supply and demand in the southern region for 2015

Power demand Power supply capacity Reserve

capability (+)

/Deficiency (-)

Demand site Demand scale Supply site Supply scale

Northern Hau

River area

Long An 663 MW Duyen Hai 600 MW

-1,289 MW

（-68.24 %）

Dong Thap 392 MW

Tien Giang 376 MW

Ben Tre 192 MW

Vinh Long 137 MW

Tra Vinh 129 MW

Subtotal 1,889 MW Subtotal 600 MW

Southern Hau

River area

An Giang 372 MW Tra Noc 176 MW

+700 MW

（+42.79 %）

Kien Giang 324 MW Ca Mau 1,500 MW

Ca Mau 189 MW O Mon Ⅰ 660 MW

Bac Lieu 136 MW

Hau Giang 96 MW

Can Tho 341 MW

Soc Trang 178 MW

Subtotal 1,636 MW Subtotal 2,336 MW

Southern region 3,525 MW 2,936 MW -589 MW

（-16.71 %）


The transmission network in the southern region is comprised of 500kV transmission lines as well as 220kV,

110kV and 22kV transmission systems.

Figure 3-6 Power Distribution system around southern area of Vietnam (2014)


3-27

There are six provinces in the northern Hau River area: Long An Province, Dong Thap Province, Tien Giang

Province, Ben Tre Province, Vinh Long Province and Tra Vinh Province. Those provinces have no large-scale

power plants (Duyen Hai 1 power plant with 2×600MW is planned to start operation in 2015), and their demand is

met with power generated at Phu My and Nhon Trach power plants and transmitted via the 220kV transmission

lines connecting Phu My, Nhon Trach, My Tho and Cai Lay, power sent from Phu Lam 500/220kV substation via

220kV transmission lines connecting Phu My, Long An and Cai Lay, and power generated at O Mon power plant

and sent via 220kV transmission lines connecting O Mon and Vinh Long and those connecting O Mon, Thot Not

and Cao Lanh.

Table 3-24 Existing 220/110kV Substation around southern area of Vietnam (North side of Hau River)

Substation name Capacity

Cai Lay 220/110kV SS 2×125 MVA

Vinh Long2 220/110kV SS 1×250 MVA + 1×125 MVA

My Tho 220/110kV SS 2×125 MVA

Long An 220/110kV SS 1×250 MVA + 1×125 MVA

Ben Tre 220/110kV SS 2×125 MVA

Tra Vinh 220/110kV SS 2×125 MVA

Cao Lanh 220/110kV SS 2×125 MVA

Total capacity 2,000 MVA


As for the southern Hau River area, there are Hau Giang Province, Soc Trang Province, Bac Lieu Province, Ca

Mau Province, An Giang Province, Kien Giang Province and Can Tho Province. They receive power generated at

Tra Noc power plant (183MW), Ca Mau power plant (1,500MW) and O Mon I power plant (330MW) and power

from the O Mon 500/220kV substation north of the Hau River via the 220kV transmission lines.

Table 3-25 Existing 220/110kV Substation around southern area of Vietnam (South side of Hau River)


O Mon 500/220kV SS 1×600 MVA + 1×450 MVA

Tra Noc 220/110kV SS 1×125 MVA + 1×100 MVA

Rach Gia 220/110kV SS 1×125 MVA + 1×250 MVA

Bac Lieu2 220/110kV SS 2×125 MVA

Soc Trang 220/110kV SS 1×125 MVA

Ca Mau 220/110kV SS 1×250 MVA + 1×125 MVA

O Mon 220/110kV SS 2×125 MVA

Chau Doc 220/110kV SS 2×125 MVA

Kien Vinh 220/110kV SS 2×125 MVA

Thot Not 220/110kV SS 2×125 MVA

Total capacity 2,350 MVA


3-28

Inside Bac Lieu Province, power is supplied from other neighboring provinces via 220kV and 110kV transmission

lines since only one wind power plant with a 16MW unit is connected to the 110kV transmission system. More

specifically, power is supplied via 220kV transmission lines connecting Ca Mau power plant (1,500MW), Bac

Lieu 2 220/110kV substation and Soc Trang 220/110kV substation, 220kV transmission lines connecting Ca Mau,

Gia Rai, Bac Lieu2 (220kV) and Vinh Trach, 110kV transmission lines connecting Ca Mau, An Xuyen, Hong Dan,

Long My, Vi Thanh, Giong Rieng and Rach Gia, Bac Lieu 110kV transmission line, Bac Lieu substation, Gia Rai

substation, Hong Dan substation, etc.

Table 3-26 Existing Substation around Bac Lieu Province


Bac Lieu2 220/110kV SS 2×125 MVA

Bac Lieu 110/22kV SS 1×40 MVA + 1×25 MVA

Gia Rai 110/22kV SS 2×25 MVA

Hong Dan 110/22kV SS 2×25 MVA

Total capacity 415 MVA


c-3) Development plans for new power plants and systems in the southern region of Vietnam

It is necessary to increase power generation capacity in the southern region in order to satisfy the power demand in

the region and reduce the amount of electricity transmitted from northern and central Vietnam. Also, along with

the development of power plants, transmission networks must be enhanced and expanded. Transmission line

development plans are usually drawn following the preparation of power plant development plans in Vietnam. The

power plants, transmission lines and substations that are planned to be developed are listed below:

Table 3-27 The development plan of thermal power plant in the southern area of Vietnam (2014)

Project Name Capacity Estimated Development Schedule

Duyen Hai

Duyen Hai I #1 600 2015

Duyen Hai I #2 600 2016

Duyen Hai III #1 600 2016



Duyen Hai II #1 600 2020

Duyen Hai II #2 600 2020

Long Phu

Long Phu I #1 600 2019

Long Phu I #2 600 2019

Long Phu II #1 600 2022

3-29

Long Phu II #2 600 2023

Long Phu III #1 1000 2030

Long Phu III #2 1000 2030

Song Hau

Song Hau I #1 600 2019

Song Hau I #2 600 2020

Song Hau II #1 1000 2023

Song Hau II #2 1000 2024

Song Hau III #1 1000 After 2030

Song Hau III #2 1000 After 2030

O Mon

O Mon I #2 330 2015

O Mon III 750 2025

O Mon IV 750 2026

O Mon II 750 2024

Kien Luong

Kien Luong I #1 600 2027

Kien Luong I #2 600 2028

Kien Luong II #1 600 After 2030

Kien Luong II #2 600 After 2030

Kien Luong III #1 1000 After 2030

Kien Luong III #2 1000 After 2030

Bac Lieu

Bac Lieu I#1 600 2023

Bac Lieu I #2 600 2024

Total 16,780


Table 3-28 The development plan of 500kV transmission line up to 2030

No. Transmission Line Circuit×km Estimated Development

Schedule

1 Bypass Đức Hòa 4 x 8 2017

2 Mỹ Tho - Đức Hòa 2 x 60 2017

3 Duyên Hải - Mỹ Tho 2 x 113 2016

4 Ô Môn - Thốt Nốt 2 x 16 2016-2020

5 Bypass - Mỹ Tho 4 x 1 2016

6 Kiên Lương - Thốt Nốt 2 x 107 After 2025

7 Thốt Nốt - Đức Hòa 2 x 145 2021-2025

3-30

8 Sông Hậu - Đức Hòa 2 x 120 2021-2025

9 Kiên Lương - Củ Chi 2 x 235 After 2025

10 Connection of Tiền Giang 8 x 5 2026-2030

11 Connection of Đồng Tháp

1

4 x 5 2026-2030

Total 1,688


Table 3-29 The development plan of 500kV Substation up to 2030

No. Substation Trans.×MVA Estimated Development

Schedule

1 Đức Hòa 1 x 900 2016

2 Thốt Nốt 1 x 600 2011-2015

3 Mỹ Tho 1 x 900 2016

4 Long Phú 1 x 450 2018

5 Duyên Hải 1 x 450 2016

6 Đức Hòa 1 x 900 2016-2020

7 Mỹ Tho 1 x 900 2018

8 Kiên Lương 1 x 450 After 2025

9 Thốt Nốt 1 x 900 After 2025

10 Duyên Hải 1 x 450 2026-2030

11 Long Phú 1 x 450 2026-2030

12 Tiền Giang 2 x 900 2026-2030

13 Đồng Tháp 1 2 x 900 2026-2030

14 Thốt Nốt 1 x 900 2026-2030

Total 10,050.00


Table 3-30 The development plan of 220kV transmission line up to 2030

No. Transmission Line Circuit×km Estimated Development

Schedule

1 Cần Đước - bypass Phú Mỹ - Mỹ Tho 4 x 7 2011-2015

2 500 kV Mỹ Tho - bypass Long An - Cai Lậy 4 x 2 2015

3 500 kV Mỹ Tho - bypass Mỹ Tho - Cai Lậy 4 x 2 2015

4 Duyên Hải PP - Mỏ Cày 2 x 77 2015

5 Mỏ Cày - Bến Tre 2 x 20 2011-2015

6 Mỹ Tho - Bến Tre 1 x 18 2014

3-31

7 Duyên Hải PP - Trà Vinh 2 x 45 2014

8 Vĩnh Long - Trà Vinh 2 x 62 2011-2015

9 KCN Sa Đéc - Bypass Vĩnh Long 2 - Ô Môn 2 x 5 2015

10 Cao Lãnh - Cai Lậy 1 x 54 2018

11 Cao Lãnh - Thốt Nốt 1 x 27 2011-2015

13 Long Phú PP - Sóc Trăng 4 x 25 2011-2015

14 Long Phú PP - Cần Thơ - Trà Nóc 2 x 95 2016-2020

15 Phụng Hiệp - bypass Ô Môn - Sóc Trăng 4 x 6 2017

16 Long Xuyên 2 - bypass Châu Đốc - Thốt Nót 4 x 5 2014

17 Cà Mau PP - Cà Mau 1 x 5 2011-2015

18 KCN Sa Đéc - Ô Môn 2 x 28 2016-2020

19 Tân An - bypass Cần Đước - Mỹ Tho 4 x 5 2016-2020

20 Gò Công - Cần Đước 2 x 22 2016-2020

21 Vĩnh Long 3 - bypass Trà Vinh - Vĩnh Long 2 4 x 3 2021-2025

22 Lấp Vò - Thốt Nốt 2 x 12 2016-2020

23 Châu Thành - bypass Long Xuyên 2 - Châu Đốc 4 x 2 2021-2025

24 Mỹ Tú - bypass Phụng Hiệp - Sóc Trăng 2 x 12 2016-2020

25 Giá Rai - bypass Bạc Liêu 2 - Cà Mau 4 x 2 2021-2025

26 Ngọc Hiển - Cà Mau 2 x 55 2016-2020

27 Cái Nước - Cà Mau 2 x 45 2016-2020

28 Gò Quao - bypass Cà Mau - Rạch Giá 2 x 6 2021-2025

29 Vị Thanh - bypass Cà Mau - Bạc Liêu 2 2 x 8 2021-2025

30 Kiên Lương PP - Kiên Bình 2 2 x 10 2016-2020

31 Kiên Lương PP - Châu Đốc 3 x 99 2016-2020

32 Long An PP - Cần Đước 2 x 11 2021-2025

33 Long An PP - bypass Gò Công 2 x 2 2021-2025

34 500 kV Mỹ Tho - Mỹ Tho 2 x 12 2021-2025

35 Bến Tre - Ba Tri 2 x 31 2021-2025

37 Cái Bè - bypass Cai Lậy - Cao Lãnh 2 x 2 2021-2025

39 Châu Đốc - Hồng Ngự 2 x 32 2016-2020

40 Hồng Ngự - Thanh Bình 2 x 30 2021-2025

41 Thanh Bình - Cái Bè 2 x 62 2021-2025

42 Chợ Mới - bypass Thanh Bình - Hồng Ngự 2 x 10 2021-2025

43 Ô Môn 2 - bypass Ô Môn - Thốt Nốt 4 x 2 2021-2025

44 Hòn Đất - bypass Kiên Lương - Rạch Giá 2 x 2 2021-2025

45 Kiên Lương PP - Hà Tiên 2 x 23 2021-2025

46 Hồng Dân - bypass Giá Rai - Bạc Liêu 2 2 x 16 2021-2025

47 Cà Mau PP - Trần Văn Thời 2 x 28 2021-2025

48 Long An PP - Cần Giuộc 2 x 11 2026-2030

3-32

49 Chợ Gạo - bypass Long An - 500 kV Mỹ Tho 4 x 2 2026-2030

50 Thạnh Hóa - 500 kV Mỹ Tho 2 x 26 2026-2030

51 Cái Bè 2 - bypass Cái Bè - Cai Lậy 2 x 2 2026-2030

52 500 kV Tiền Giang - bypass Thanh Bình - Cái Bè 2 x 2 2026-2030

53 500 kV Tiền Giang - bypass Cao Lãnh - Cái Bè 2 2 x 2 2026-2030

54 500 kV Tiền Giang - Bình Minh 2 x 25 2026-2030

55 Tháp Mười - bypass Thanh Bình - Cái Bè 4 x 2 2026-2030

56 Phú Tân - bypass Hồng Ngự - Châu Đốc 4 x 1 2026-2030

57 Tri Tôn - bypass Kiên Lương - Châu Đốc 4 x 10 2026-2030

58 Cờ Đỏ - bypass Cà Mau - Ô Môn 4 x 2 2026-2030

59 Cầu Kè - bypass Trà Vinh - Vĩnh Long 3 2 x 12 2026-2030

60 Chợ Mới - Châu Thành 2 x 14 2026-2030

61 500 kV Đồng Tháp 1 - bypass Thanh Bình - Hồng

Ngự

4 x 2 2026-2030

62 500 kV Đồng Tháp 1 - bypass Chợ Mới 2 x 2 2026-2030

Total 2,439


Table 3-31 The development plan of 220kV Substation up to 2030

No. Substation Trans.×MVA Estimated Development

Schedule

1 Long An 1 x 250 2014

2 Bến Lức 1 x 250 2011-2015

3 Đức Hòa 2 x 250 2014

4 Cần Đước 1 x 250 2015

5 KCN Sa Đéc 1 x 250 2015

6 Châu Đốc 2 x 250 2014

7 Long Xuyên 2 1 x 250 2017

8 Mỹ Tho 1 x 250 2014

9 Cai Lậy 1 x 250 2014

10 Vĩnh Long 2 1 x 250 2015

11 Bến Tre 1 x 250 2016

12 Thốt Nốt 1 x 250 2017

13 Phụng Hiệp 2 x 125 2011-2015

14 Trà Vinh 1 x 125 2015

15 Sóc Trăng 1 x 125 2015

16 Cà Mau 1 x 250 2014

17 Bạc Liêu 1 x 125 2011-2015

3-33

18 Bến Lức 1 x 250 2016-2020

19 Tân An 1 x 250 2016-2020

20 Cao Lãnh 1 x 250 2016-2020

21 Lấp Vò 2 x 250 2016-2020

22 Long Xuyên 2 1 x 250 2016-2020

23 Châu Thành 1 x 250 2021-2025

24 Cai Lậy 1 x 250 2021-2025

25 Mỹ Tho 1 x 250 2016-2020

26 Gò Công 2 x 250 2016-2020

27 Vĩnh Long 2 1 x 250 2016-2020

28 Vĩnh Long 3 1 x 125 2016-2020

29 Bến Tre 1 x 250 2015

30 KCN Sa Đéc 1 x 250 2016-2020

31 Mỏ Cày 1 x 125 2016

32 Kiên Bình 2 x 250 2016-2020

33 Gò Quao 1 x 125 2016-2020

34 Thốt Nốt 1 x 250 2016-2020

35 Ninh Kiều 1 x 125 2016-2020

36 Vị Thanh 1 x 125 2021-2025

37 Duyên Hải 1 x 250 2016-2020

38 Mỹ Tú 1 x 125 2016-2020

39 NĐ Long Phú 1 x 125 2016-2020

40 Giá Rai 1 x 125 2016-2020

41 Ngọc Hiển 2 x 125 2016-2020

42 Tam Bình 2 x 250 2021-2025

43 Tân An 1 x 250 2021-2025

44 Đức Hòa 2 2 x 250 2021-2025

45 Đức Hòa 3 1 x 250 2021-2025

46 Cần Đước 1 x 250 2021-2025

47 Thanh Bình 2 x 250 2021-2025

48 Hồng Ngự 1 x 250 2016-2020

49 Châu Thành 1 x 250 2021-2025

50 Chợ Mới 1 x 250 2021-2025

51 Cái Bè 2 x 250 2021-2025

52 Cái Bè 2 1 x 250 2021-2025

53 Vĩnh Long 3 1 x 250 2021-2025

54 Mỏ Cày 1 x 250 2016-2020

55 Ba Tri 1 x 250 2021-2025

56 Gò Quao 1 x 125 2021-2025

3-34

57 Hòn Đất 1 x 250 2021-2025

58 Trà Nóc 2 x 250 2021-2025

59 Ô Môn 1 x 250 2021-2025

60 Ninh Kiều 1 x 250 2016-2020

61 Ô Môn 2 1 x 125 2021-2025

62 Vị Thanh 1 x 125 2021-2025

63 Phụng Hiệp 1 x 250 2021-2025

64 Trà Vinh 1 x 250 2021-2025

65 Duyên Hải 1 x 250 2021-2025

66 Sóc Trăng 1 x 250 2021-2025

67 Mỹ Tú 1 x 125 2021-2025

68 NĐ Long Phú 1 x 125 2021-2025

69 Giá Rai 1 x 125 2021-2025

70 Hồng Dân 1 x 125 2021-2025

71 Trần Văn Thời 1 x 250 2021-2025

72 Đức Hòa 3 1 x 250 2026-2030

73 Đức Hòa 4 2 x 250 2026-2030

74 Cần Giuộc 2 x 250 2026-2030

75 Thạnh Hóa 1 x 250 2026-2030

76 KCN Sa Đéc 1 x 250 2026-2030

77 Hồng Ngự 1 x 250 2021-2025

78 Tháp Mười 1 x 250 2026-2030

79 Chợ Mới 1 x 250 2026-2030

80 Phú Tân 2 x 250 2026-2030

81 Tri Tôn 2 x 250 2026-2030

82 Cái Bè 1 x 250 2026-2030

83 Cái Bè 2 1 x 250 2026-2030

84 Chợ Gạo 2 x 250 2026-2030

85 Vĩnh Long 3 1 x 250 2026-2030

86 Bình Minh 1 x 250 2026-2030

87 Mỏ Cày 1 x 250 2026-2030

88 Ba Tri 1 x 250 2026-2030

89 Gò Quao 1 x 250 2021-2025

90 Hòn Đất 1 x 250 2026-2030

91 Hà Tiên 2 x 250 2026-2030

92 Ô Môn 1 x 250 2026-2030

93 Ninh Kiều 1 x 250 2026-2030

94 Ô Môn 2 1 x 250 2026-2030

95 Cờ Đỏ 2 x 250 2026-2030

3-35

96 Vị Thanh 1 x 250 2026-2030

97 Phụng Hiệp 1 x 250 2026-2030

98 Trà Vinh 1 x 250 2026-2030

99 Cầu Kè 1 x 125 2026-2030

100 Sóc Trăng 1 x 250 2026-2030

101 Mỹ Tú 1 x 250 2026-2030

102 NĐ Long Phú 2 x 250 2026-2030

103 Bạc Liêu 2 2 x 250 2021-2025

104 Hồng Dân 1 x 125 2026-2030

105 Ngọc Hiển 2 x 250 2021-2025

106 Trần Văn Thời 1 x 250 2026-2030

Total 23,750.00


d) Coal procurement

d-1) Outline of coal procurement plans

The plan for the Project includes coal-fired thermal power plants that utilize imported coal, and since the site

will face the open ocean, the procurement of coal by marine transportation will be considered. There are two

options for the procurement: directly receiving imported coal from 30,000DWT bulk ships (30,000DWT plan)

and procuring coal from 10,000DWT bulk ships via a coal transfer station in Vietnam (10,000DWT plan).

In the 30,000DWT plan, ocean-going ships will be received at the plant site and since the planned power plant

site is close to international shipping routes, the convenience and access for the area will be enhanced

exponentially through the development of port and harbor facilities and shipping routes. However, the planned

power plant site is in the Mekong Delta region and faces shoals; thus the cost for dredging, construction of

levees and other offshore engineering work required for a port development will be significant. In the case of

the 30,000DWT plan, the sources of coal will have to be nearby countries such as Indonesia and Australia based

on the stability of coal procurement and cost competitiveness, which will be a limiting factor in terms of

ensuring Vietnam’s energy security. Especially some energy exporting countries such as Indonesia restrict

export in order to first secure energy resources for domestic use under national policies. It should be

remembered that there could be risks that might make the conclusion of long-term supply agreements difficult.

With the 10,000DWT plan, the types of coal to be procured will be more than those in the 30,000DWT plan,

potentially improving the energy security of Vietnam while reducing the cost and amount of work to develop

necessary port facilities. However, there are concerns for risks associated with delay in the development of the

coal transfer station in Vietnam and relatively high prices of coal due to fees imposed by such transfer stations,

etc. In this context, both the 30,000DWT plan and 10,000DWT plan are examined in this study.

3-36

d-2) Outline of the coal transfer station plan in Vietnam

When planning for a coal transfer station in Vietnam, there are multiple options for the location, and at this point,

the construction of the station in the Duyen Hai area is considered most viable. In this plan, the coal transfer

station will supply coal to coal-fired thermal power plants located inland near a river; however for the future, the

plan considers supplying coal to eight projects such as Duyen Hai, Song Hau, Long Pho, Kien Luong, An Giang

and Bac Lieu.

Considering the use of the station for the Project, and based on the information above and the fact that the

unloading ship will be a barge not a bulk ship as well as the risk associated with the coal transfer station

development schedule, preparations might have to be made in case the 30,000DWT plan is adopted.

Figure 3-7 Location Map from Duyen Hai coal centre to planned area of power plant


3-37

The plan for the Duyen Hai coal transfer station is summarized below:

Table 3-32 Basic Plan of Duyen Hai Coal Centre

Phase 1 Phase 2 Phase 3

Coal exporter Indonesia / Australia

Size of ship received 100,000DWT

(16m Draught)

(Same as on the left) 160,000DWT

(19m Draught)

COD 2023 2028 2033

No. of receiving berth 2 3 4

Traded amount/year 8.5 million t/year 18 million t/year 31 million t/year

Supply excluding that

to DH PP

3.8 million t/ year 12 million t/ year 25 million t/ year

Coal storage yard

capacity

300,000T 1,000,000T 2,000,000T

Coal supplied to Duyen Hai, Song Hau, Long Phu, Bac Lieu, An Giang, Long An

Discharge ship size 5,000DWT/10,000DWT barge

(4.5m Draught, Quan Chanh Bo water way expansion is planned)

No. of discharge berth 2 4 7

Discharge berth size 9.0m×160m×40m

Days of operation 350 days/year (including regular maintenance)

Berth calmness 97.5% assuming levees in place


d-3) Depth of the sea near the planned power plant site

The depth of the sea is about 5 - 6m at the shore 7-8km away from the coast, and about 12m at 16 km away from

the coast.

Figure 3-8 Sea bed depth around the planned are of power plant

3-38


Table 3-33 Example of bulk ships for coal


e) Steam requirements for the plants

The majority of thermal power plants in operation in Vietnam are subcritical plants and while supercritical plants

are being developed, they have not been actually operated. As the planned operation commencement of the Project

is in the 2020s, there should be enough time to accumulate enough experience of operating supercritical plants.

In that case, the introduction of ultrasuper critical plants in Vietnam might be considered as the next step; thus two

options, namely the adoption of the supercritical plant or ultrasuper critical plant, are examined in this study. For

the specific steam requirements for the respective plant, the steam requirements were selected based on the ample

operational record of Kyushu Electric Power to be used in the plan.

Table 3-34 Basic Design of Steam condition for power plant

600 MW-class

Supercritical plant

600 MW-class

Ultra supercritical plant

1,000 MW-class


Main Steam Press 24.1 MPaA 24.1 MPaA 24.1 MPaA

Main Steam Temp 566 ℃ 593 ℃ 593 ℃

RH Steam Temp 566 ℃ 593 ℃ 593 ℃


f) Fuel properties of the potential coal used

When assuming the power plant operation using imported coal, the realistic sources of coal will be Indonesia or

Australia based on the transportation cost, etc. However, there are characteristics for each type of coal in terms of

the prospect for stable procurement and price competitiveness, and an examination is done based on the coal

properties that were used in the recent bid for coal to be used in the Duyen Hai power plant. More specifically, the

coal properties in the ranges below are assumed:

30,000 DWT coal ship 10,000 DWT coal ship

Type of ship Type 32 Type 10

Extreme draught 9.65 m 10.40 m

Lengh overall 180.0 m 113.33 m

Beam 30.0 m 19.40 m

3-39

Table 3-35 Estimated range of design coal property

Coal Property Criteria

Allowable Unallowable

Moisture 8～16 % ＞ 16 %

Inherent moisture 3～10 % ＞ 10 %

Calorific value


5980 ～ 6554 kcal/kg ＜ 5980 kcal/kg

Ash (Equilibrium moisture base） 4～16 % ＞ 16 %

Volatile matter


36～42 % ＜ 36 % or ＞42 %

Sulfer


0.4～1.4 % ＞ 1.4 %

MgO+Na2O in ash 1.5～4.0 % ＜ 1.0 %, ＞ 4.0 %

K2O in ash 1.0～2.0 % ＜ 0.6 %, ＞ 2.0 %

SiO2/Al2O3 ratio in ash ＜ 2.5 ＞ 3

HGI ＞ 50 ＜ 45

Ash melting point ＞ 1250 ℃ ＜ 1200 ℃

Coal particle diameter ＜50 ㎜：100 %、＜1 ㎜：＜15 % ＜1 ㎜：＞ 15 %


Based on the ranges of coal properties as shown above, types of coal that have price competitiveness and can be

supplied stably over a long period of tome are listed below:

Table 3-36 The estimated coal property to be procured for this project

Coal name BAU coal Targinsky coal Moolarben coal Solntsevsky coal

Country of coal mine Indonesia Russia Austraria Russia

HHV (kcal/kg) Equilibrium

moisture base

6,000 6,920 6,640 5,644

Receied base 5,100 6,450 6,100 5,137

LHV (kcal/kg) Received base 4,700 6,150 5,850 4,826

Total moisture

content (wt%)

Received base 26 10.3 10.5 18

HGI 50 48.2 50 44

Technical analysis（Equilibrium moisture base）

Inherent moisture (wt%) 12 3.8 2.5 9.9

Fixed carbon (wt%) 41 52.2 51.5 39.9

Volatile matter (wt%) 41 33.8 29 38.1

Ash (wt%) 6 10.2 17 12.1

Total 100 100 100 100

3-40

Coal name BAU coal Targinsky coal Moolarben coal Solntsevsky coal

Fuel ratio 1.0 1.5 1.78 1.047

Sulfer (wt%) 0.3 0.4 0.5 0.17

Elemental analysis （Dry basis）

Carbon (wt%) 70.21 73.5 68.94 65.61

Hydrogen (wt%) 4.68 5.01 4.38 4.92

Oxygen (wt%) 17.32 8.28 7.18 14.75

Nitrogen (wt%) 1.4 2.22 1.65 1.1

Sulfur (wt%) 0.3 0.41 0.50 0.19

Ash (wt%) 10.6 17.44 13.43


g) Environmental load

The construction and operation of coal-fired thermal power plants entail certain impacts on the surrounding

environment such as potential resettlement of residents to acquire the land required and environmental load

from the operation. Therefore, during the preparation of the power plant plan, it is necessary to examine these

impacts and come up with countermeasures in advance. The existence of mangrove forests in the sea near the

planned power plant side for the Project has been confirmed and preliminary examination of measures is

necessary, such as the reduction of the area of mangrove to be cleared to make way for the power plant site. The

details are given in Chapter 4.

h) Funding methods

For the Project, about 250,000,000,000 JPY is estimated for the land acquisition necessary for the three phases,

land preparation, construction of common facilities such as port facilities, and power generation facilities, etc.

for Phase 1, and the methods for securing the funds to cover these costs must be considered. The details are

given in Chapter 5.

3) Technological methods

a) Power generation method

The main methods of thermal power generation beyond supercritical power generation include the supercritical

and ultrasuper critical power generation with the use of the once-through boiler. The boiler must be selected based

on the steam pressure and temperature, and if the steam requirement is above the critical point, the once-through

boiler must be selected. As for the turbine facility, the steam turbine is planned to be the condensing turbine, and

for the turbine cycle, the regeneration cycle with the multiple-stage steam extraction from the turbine is planned in

order to create necessary facilities.

3-41

Table 3-37 The plant performance estimation for this project

Supercritical Ultra Supercritical

600 MW-class×2 600 MW-class×2 1,000 MW-class×1

Gross Plant Efficiency

（HHV）

41.08 % 41.88 % 41.96 %

Flue Gas Flow

About 2,800 t/h×2 About 2,640 t/h×2 About 4,000 t/h×1

Necessary cooling water

volume

55.46 m3/s 53.64 m3/s 40.52 m3/s


The Project aims to build coal-fired thermal power plants in three phases, assuming the construction of two units

with 600MW per phase as a rule. If the plan is to build one coal-fired thermal unit with 1,000MW, which comes to

about the same amount of output, the reduction in the construction cost and the area to be developed for the plant

site, etc. can be expected. Thus, in this study, three plans, namely the construction of 600MW supercritical plant,

600MW ultrasuper critical plant and 1,000MW ultrasuper critical plant, are examined.

b) Type of desulfurization equipment

The use of the lime-gypsum method among the wet desulfurization methods is the mainstream in Japan at present.

However for the operation at the location of the Project, the use of sea water desulfurization technology is

assumed for the purpose of this study since there are many matters that are not yet settled such as the way to

procure necessary chemicals and the way to dispose byproducts. The desulfurization method will be revised as

needed based on the data acquired in the future study.

ｃ）Scale of coal receiving facilities

For the Project, the examination is done for the 30,000DWT plan which assumes the receiving of imported coal

directly and the 10,000DWT plan which assumes the use of coal transfer station inside Vietnam. Revisions will be

made as needed based on the data acquired in the future study since the optimum solution will change with the

progress of the coal transfer station development, international market trend on coal prices, and energy status.

3-42

(4) Outline of the Project Plan

1) Basic policies in determining the Project contents

a) Project implementing entity

Back in 2010, the Vietnamese government was planning the construction of multiple power plants in order to

meet the power demand in the southern region based on PDP7, and now in 2014, the development of those

power plants has not progressed according the plans due to issues of the Vietnam – China relationship, etc.

Power Generation Corporation 2 (EVNGenco2) which is under the direct control of EVN was developing new

O Mon power plant but the project has also stalled.

Therefore, EVNGenco2 has indicated its willingness to participate in the Project as the implementing entity for

the new power plant development. There is information obtained that EVNGenco2 is listed as the implementing

entity in the revised PDP7, through lobbying to IE, etc. Given this situation, it is likely that EVNGenco2 will be

selected as the implementing entity of the Project. As explained above, it is assumed that the Project will be

implemented with EVNGenco2 as the implementing entity.

b) Period of the Project implementation

In 2010, PDP7 stated the start of operation for the Project as 2028. Through interviews, it was revealed that

the revised PDP7 is likely to state the time for the start of operation for Phase 1 to be 2023 – 2024, potentially

accelerating the schedule. Therefore, the time for the start of the Project is assumed based on the information.

c) Installed capacity

Usually in designing the power generating capacity for a power generation facility, a larger capacity is planned

in order to reduce the cost of construction and operation by taking advantage of economy of scale. On the other

hand, for the purpose of stable system operation, the consideration is made so that the generating capacity of the

facility accounts for the maximum of about 7 – 10% of the power demand, by taking into consideration the

effect the facility will have on the grid in case such facility has failed, etc. and unable to supply power.

Power demand in Vietnam for 2013 was about 31,000MW and has been on the increase at the rate of 10 - 15% a

year since then. For reasons given above, the connection of 1,000MW capacity facility to the grid will also be

considered; thus this study will give consideration to the development of power plants with the generation

capacity of 600MW, a popular choice in Vietnam, and those with 1,000MW for the Project.

d) Connection to the power grid

The generation capacity of all the power plants built by the Project will be large at 3,000 - 3,600MW and the

plants must be connected to a 500kV system for the stable and economic transmission of all the power

generated at the plants. However, in the southern region of Vietnam, power supply has continuously been below

power demand, thus power must be supplied to the 220kV system or to the 220kV system from the 500kV

system via the tie transformers. Therefore, two plans for connecting to transmission lines are assumed for the

3-43

Project; namely, supplying the entire power to the 500kV system (500kV connection plan) and supplying it to

the 500kV system and 220kV system (500/220kV connection plan).

d-1) 500kV connection plan

Figure 3-9 The grid connection from power plant to 500kV system


d-2) 500/220kV connection plan

Figure 3-10 The grid connection from power plant to 500kV/220kV system


ND Ca Mau

Go Quao

Rach Gia

O MON

Gia Rai Hong Dan Bac Lieu

Soc Trang

THOT NOT

CU CHI

MY PHUOC

LONG PHU SONG HAU

TIEN GIANG

MY THO

O MON

Ca Mau

Vi ThanhBac Lieu～THOT NOT 500kV Line(2 circuits)

Length：About 124 ㎞

Bac Lieu Power Station

　　　　　　　　　500ｋV System

　　　　　　　　　220ｋV System

ND Ca Mau

Go Quao

Rach Gia

O MON

Gia Rai Hong Dan Bac Lieu

Soc Trang

THOT NOT

CU CHI

MY PHUOC

LONG PHU SONG HAU

TIEN GIANG

MY THO

O MON

Ca Mau

Vi Thanh

Bac Lieu Power Station 　　　　　　　　　500ｋV System

　　　　　　　　　220ｋV System

Bac Lieu～THOT NOT 500kV Line (2 circuits)

Length：about 124 ㎞

Connecting to Gia Rai～Bac Lieu Existing 220kV Line (2 circuits) by p branch

Length of Branch Line ①： About 11.5 ㎞

Length of Branch Line ②： About 12.5 ㎞

Branch①

Branch②

3-44

e) Coal procurement methods

As the Project planned to build coal-fired thermal plants that use imported coal, port facility and coal unloading

and transportation facility are planned based on the two marine transportation plans: the 30,000DWT plan and

10,000DWT plan.

f) Methods of procuring water for plant use

The basic plan for the procurement of water for plant use is to get river water from the Quan Lo-Phung Hiep water

way. However since the amount water obtainable during the dry season is uncertain and the quality of the river

water is not stable, the plan to use such river water is supplemented with the plan to introduce seawater

desalination units for examination

g) Securing access routes and procuring plant construction materials

The National Highway 1 is a major road located in the north of the planned power plant site of the Project, and can

be used to transport heavy loads that are necessary for the construction work. However, most roads near the

planned power plant site have a road width of about 6.5m and are not suitable for the transportation of heavy loads.

Therefore, the road from the National Highway 1 to the planned plant site (about 12 km in length) must be

developed through broadening of the road and enhancing load-bearing strength through investment.

There are two potential access routes to the planned power plant site, the first one being traveling on the National

Highway 1 to Gia Rai district and then getting on the provincial road 979, and the second one is to use the road

between Xom Lung and Cai Cung that forks from the National Highway 1. However, the road between Xom Lung

and Cai Cung crosses many rivers and the construction of bridges will be required.

As the plant construction materials such as cement, soil, sand, timbers, etc. cannot be procured locally, they must

be obtained from other neighboring areas. Cement could be obtained from Ha Tien cement factory (Can Tho

City/Ho Chi Minh City), soil and sand from Tan Chau and Cao Lanh, and stone materials from Bien Hoa via

marine transportation. The ferrous material, bricks and other construction materials must be procured from other

regions. Steel stock for the construction of the main buildings such as the boiler building and turbine building is

not manufactured in Vietnam and must be imported. When transporting those materials, marine transportation will

be assumed as transport by road will have restrictions such as issues with the conditions of the roads and weight

limitation. For the land preparation work on the planned power plant site, soil and sand from dredging work to

prepare the basin and channel will be used.

Figure 3-11 Road condition around the planned area of power plant


3-45

h) Power source for construction work

As a power source to be used during the construction and trial operation, power could be supplied from 110kV

transmission lines connecting Gia Rai and Ca Mau or Gia Rai and Bac Lieu with a T-junction, and by building an

110kV, 1×40MVA switchyard on the power plant site. An alternative is to receive power from the existing 22kV

transmission line in the early stage of the construction, and in the trial operation, etc. afterward to receive power

from 110 kV Ganh Hao substation once the substation starts its operation. However, the development plan has not

been drawn for years following 2016 by Bạc Liêu Distribution Committee at this point, and it needs to be clarified

through later study. The power receiving and transforming facility installed for the construction work will be used

as the distribution facility for the nearby area after the completion of the power plants.

2) Concept design and facility specifications

Based on the study results given above, the power plant construction plan was created assuming that the plants are

operated for base load operation with a high utilization factor. The basic design policies are explained below:

a) Site layout plan

The layout of the power generation facilities was examined by considering the direction of the prevailing wind and

the reduction of its interference to transmission line connection, potential interference to heavy machinery used

during the construction, and interference area with the mangrove forests. The possible layout plan is shown below.

However, the layout plan is for reference only and will be reexamined during the detailed design stage.

Figure 3-12 Layout option of 600MW-class supercritical plant × 2 units

Site Layout Power Train Configuration

30,000DWT option

10,000DWT option



3-46

Figure 3-13 Layout option of 600MW-class Ultra supercritical plant × 2 units


30,000DWT option

10,000DWT option



Figure 3-14 Layout option of 1000MW-class Ultra supercritical plant × 1 unit


30,000DWT option

10,000DWT option



3-47

b) Boiler and auxiliary equipment

For the selection of steam requirement, the requirements that Kyushu Electric Power has ample experience with

are used. For other specifications, the types and methods are those that Japanese manufacturers have ample record

and experience. The type of boilers is the once-through boiler on the assumption that supercritical or ultrasuper

critical power generation is adopted.

b-1) Main boiler body

Based on Kyushu Electric Power’s record and experience in choosing coal-fired plants, the specifications for the

main boiler body are assumed as follows:

Table 3-38 The design estimation for Main Boiler

600MW -class

Supercritical plant

600MW-class


1,000MW-class


Boiler type Supercritical, Sliding pressure once-through boiler, radiant RH type

Main steam flow 1935.7 t/h 1872.1 t/h 2825.7 t/h

Main steam pressure 24.1 MPaA 24.1 MPaA 24.1 MPaA

Main steam temp. 570 ℃ 597 ℃ 597 ℃

Reheat steam pressure 4.59 MPaA 4.9 MPaA 4.9 MPaA

Reheat steam temp. 568 ℃ 595 ℃ 595 ℃

Boiler inlet feed water

temp.

283 ℃ 290 ℃ 290 ℃

AH outlet exhaust gas

temp.

Approx. 130 ℃

Draft method Balanced draft method

Boiler efficiency (HHV) 87.66 % 87.84 % 87.84 %


b-2) Boiler auxiliary equipment

The plan for the boiler auxiliary equipment is shown in the table below, based on the record of Kyushu Electric

Power. However, the revisions will be made as needed with the progress of the detailed study in the future.

Table 3-39 The design estimation for Main Boiler Auxiliaries

Coal banker Type Square Celled Steel

Capacity To be decided according to the detailed

design

Cool feeder Type Gravimetric Coal Feeder


design

Coal Pulverizer Type Vertical mill


design

Coal burner Type Pulverized coal unit directly pressurized

3-48

Capacity Front wall：3stages×6、Rear wall：3stages×6

Ignition burner Type Electrical ignition air spray

Capacity 36units

Piplot burner Type Air spraing type

Capacity Front wall：1stages×6、Rear wall：1stages×6

Force draft fan Type Horizontal first stage rotor blade variable

pitch axial flow type

Capacity 50 %×2

Induced draft fan Type Rotor blade variable pitch axial flow type

Capacity 50 %×2

Primary air fan Type Horizontal 2 stage blade variable pitch axial

flow type

Capacity 50 %×2

Gas recirculating fan Type Horizontal axis double suction centrifugal

type

Capacity 100 %×2

Preheater Type Regenerative rotary vertical axis type

Capacity 50 %×2

Stack Type Co-stayed steel stack with 2 flows Four-leg

support steel tower

Capacity Approx. 210m

Gas flow

speed

20 m/s or below


c) Steam turbine and turbine auxiliary equipment

c-1) Main steam turbine body

As the steam turbine must have a high output, the condensing turbine was adopted and the turbine cycle method

will be the reheat regenerative cycle method.

Table 3-40 The design estimation for Steam Turbine and Turbine Cycle

600 MW -class

Supercritical plant

600 MW-class


1,000 MW-class


Turbine ype Tandem compound 3casing 4 flow exhaust

Reheated/Regerative type

Tandem compound

4casing 4 flow exhaust

Reheated/Regerative type

Main steam pressure 24.1 MPaA 24.1 MPaA 24.1 MPaA

Main steam temp. 566 ℃ 593 ℃ 593 ℃

Main steam flow 1935.7 t/h 1872.1 t/h 2825.7 t/h

Reheat steam pressure 4.45 MPaA 4.78 MPaA 4.78 MPaA

Reheat steam temp. 566 ℃ 593 ℃ 593 ℃

3-49

Reheat steam flow 1682.9 t/h 1602.6 t/h 2439.4 t/h

LP turbine exhaust

pressue 710 mmHg.vac

Number of extraction

stges 8 stages（LP heater：4 stages, Deaerator：1 stage, HP heater：3 stages）

Turbine cycle efficiency 46.86 % 47.68 % 47.76 %


c-2) Turbine auxiliary equipment

Table 3-41 The design estimation for Steam Turbine Auxiliaries

Condenser Type Double steam Flow semi-chamber counter

current flow surface cooling type

Cooling pipe

material

Titanium pipe for heat exchange

Condensate pump Type Vertical multistage diffuser type

Capacity 50 %×3 or 100 %×2

Condensate booster pump Type Horizontal axis multistage diffuser type

Capacity 50 %×3 or 100 %×2

Condensate vaccume pump Type Water sealing rotary type

Capacity 100 %×2

Condensate fileter Type Cartridge filter

Capacity 100 %×2

Condensate demineralizer Type Mixed bed demineralizer

Capacity 33 %×4units + renegeneration equipment 1

set

Turbine-driven boiler feed water pump Type Horizontal barrel type centrifugal pump

Capacity 50 %×2

Boiler feed water booster pump Type Horizontal double suction centrifugal pump

Capacity 50 %×2

Motor-driven boiler feed water pump Type Horizontal barrel type centrifugal pump

Capacity 25 %×1

Feed water heater Type Surface heating U-shape pipe

Capacity #1/2/6/7/8:50 %×2、#3/4：100 %×1

Deaerator

Type Horizontal pressurized

Capacity 100 %×1

Circulating pump Type Vertical 2 -bed variable vane mixed flow

pump

Capacity 50 %×2

Bearing cooling water pump Type Horizontal double suction centrifugal pump

Capacity 50 %×3

3-50


d) Power generation facilities

d-1) Generator and main transformer

Table 3-42 The design estimation for Generators and Main Step-up Transformers

600MW/1,000MW-class plant

Generator

Type Stator/direct water cooling, rotor/hydrogen cooling 3-phase generator

Revolution 50 Hz

Rated voltage 20～30 kV (according EPC manufacturer’s standard)

Power factor 0.85 (lagging) ～0.9 (leading)

Insulation type F type insulation

Temp. rise limit Less than alloable temp. of class B insulation

Cooling method Stator： Directly water-cooled system

Rotar： Directly hydrogen-cooled system

Excitation method Thyristor direct-excitation method

Main Tr

Type Oudoor oil-immersed single-phase/3-phase Tr

（w. tap changer during loading）

Frequancy 50 Hz

Capacity 800MVA / 1200MVA

Rated voltage

（Secondary side） 500 kV±10%

Cooling method ONAN/OFAF (according EPC manufacturer’s standard)

Neutral earthing Direct earthing at the HP side neutral point


d-2) Outdoor switchyard

Since the generating output for the entire power plants is large and transmission losses must be reduced for the

Project, the 500kV-class outdoor switchyard will be planned to facilitate the connection to 500kV transmission

lines. For the Project, the 1+1/2 configlation outdoor switchyard was planned, assuming that power from all three

phases will be sent to 500kV transmission lines as the basic configuration.

The use of the 1+1/2 configlation started originally to facilitate the addition of circuits to the ring bus

configuration. In this configuration, one circuit has two breakers. In the case of a circuit fault, two connected

breakers will be tripped. With the configuration of one bank, two circuits and three breakers, the fault of the

middle breaker will impact two circuits, but the fault of a breaker connected to the bus will impact only one

circuit.

The inspection and repair of a breaker can be done without affecting any circuit except for the one being repaired.

Further, an outage of any bus will not affect the circuits and thus this is the most reliable configuration and any

addition to the configuration will be relatively easy. This configuration has a somewhat low cost compared to the

double bus + forward bus configuration and the configuration of the bus protection device is not very different

3-51

from that of double bus. However, with more direct equipment, the necessary area will be larger.

The configuration plan for the 500kV outdoor switchyard for the Project is shown below:

Figure 3-15 Substation option for 500kV grid connection


Figure 3-16 Substation option for 500kV/220kV grid connection


From Bac Lieu Phase3

From Bac Lieu Phase1 From Bac Lieu Phase2

To 500kV Grid System

From Bac Lieu Phase3



From Bac Lieu Phase1From Bac Lieu Phase2

3-52

e) Control device

e-1) Configuration of control devices

Here, the main instrumentation & control system is explained, along with the trend of the latest control and

instrumentation system, as well as a case of introduction of a superior system in terms of price, reliability and

system series continuity including the facility configuration. From the viewpoint of cost reduction after the start of

operation, it is important to select devices making up the control system, which could be used on the continuous

bases without a large-scale system revision, even in the case of technological progress or if the items are

discontinued.

The standard system configuration plan and devices in the control & instrumentation system are shown below:

Figure 3-17 System configuration plan for large-capacity thermal power units


Devices usually included in the facility for large capacity plants are shown below:

Table 3-43 Range of control & instrumentation facilities

No. Control and Instrumentation Functions Abbreviations

1 Distributed Digital Control System DCS

2 Safety Instrumented System SIS

3 Annunciation System

4 Plant information and Management system PIMS

5 Electrical Distribution Monitoring System EDMS

ＤＤＣＭＩＳ

AUXILIARIES

OPERATING STATION

A3 SIZEA3 SIZE

OPERATING STATIONS

RESOLUTION=1920×1080

DISPLAY COLORS=128 NOS

RAM CAPACITY = 4 GB

HDD CAPACITY = 500 GB

NO. OF ASSIGNABLE KEYS

PER OPERATOR KEYBOARD = 101

ALL OPERATING STATION ARE

COMPUTER ROOM

HISTORIAN ALARM& MIS EWS SERVER-1

HIGH SPEEDDMP PRINTER

KEY BOARDMOUSE

REDUNDANT INDUSTRIIAL GRADE ETHERNET TCP7IP BUS

COLORLED

24°

HISTORIAN ALARM& MIS EWS SERVER-2

HIGH SPEEDDMP PRINTER

KEY BOARDMOUSE

COLORLED

24°

ENGG. & DIAGNOSTICOS-1

A4 SIZE LJPRINTER COLOR

KEY BOARDMOUSE

COLORLED

24°

LASER JETCOLOR PRINTER

ENGG. & DIAGNOSTICOS-2


KEY BOARDMOUSE

COLORLED

24°

LASER JET

COLOURED PRINTERCUM SCANNER/COPIER

PERFORMANCE CALCULATION& OPTIMISATION EWS


KEY BOARDMOUSE

COLORLED

24°

PERFORMANCE CALCULATION& OPTIMISATION OS

A4 SIZE LJPRINTER B/W

KEY BOARDMOUSE

COLORLED

24°

UNIT INCHARGE ROOM

SHIFT SUPERVISOR OS

KEY BOARDMOUSE

COLORLED

24°

SHIFT SUPERVISOR TSE OSA4 SIZE LJ

PRINTER COLOR

KEY BOARDMOUSE

COLORLED

24°

SER EWSHIGH SPEEDDMP PRINTER

KEY BOARDMOUSE

COLORLED

24°

TSC EWSA4 SIZE LJ

PRINTER COLOR

KEY BOARDMOUSE

COLORLED

24°

EWS FOR TURBINECONTROL SYSTEM

A4 SIZE LJPCOLOR

KEY BOARDMOUSE

COLORLED

24°

OWS FORSTATION INCHARGE(XEN)

A4 SIZE LJPRINTER B/W

KEY BOARDMOUSE

COLORLED

24°

OPERATOR STATION(BMS/FSS)

KEY BOARDMOUSE

COLORLED24°

A4 SIZELJ PRINTER COLOR

OWS-1BOILER

TO SHEET 2 OF 3

6 LARGE VIDE SCREENWITH 80" DIAGONAL SIZE

DISPLAYCONTROLLER

GRAPHIC

KEY BOARD

CCR

REDUNDANT DATA HIGHWAY

FOR BOILERAUXILIARIES

KEY BOARDMOUSE

COLORLED24°

OWS-2OPERATING STATION

KEY BOARDMOUSE

COLORLED24°

A4 SIZELJ PRINTER B/W

FOR BOILER

OWS-3

KEY BOARDMOUSE

COLORLED24°

OPERATING STATION

TURBINE AUXILIARIES

OWS-4

FOR STEAMAUXILIARIES

OPERATING STATION

KEY BOARDMOUSE

COLORLED24°

FOR STEAM TURBINE

OWS-5


FOR ELECTRICAL & BOP

MOUSE

COLORLED24°

OWS-6OWS-7

MOUSE

COLORLED24°

OWS-8

MOUSE

COLORLED24°

TURBINE CONTROL SYSTEMDEHGC,ARTS,ATT etc.


A4 SIZELJ PRINTER COLOR

TURBINE CONTROL SYSTEM

ES ESFOR SAFE SHUT DOWN.

ELECTRICAL/SWITCH

CONTROL SWITCHESFOR CRITICAL PARAMETERSON MGP/UCP

OPERATION & RECORDERS

YARD ON MGP/UCP

STATION

PUSH BUTTON

TO SHEET 2 OF 3

SPEED = 100 MEGA BITS PER Sec.MEDIUM = COXIAL CABLE/FO CABLE

DATA HIGHWAY PROPRIETARY,DETERMINISTIC IEEE802.4

MULTIFUNCTIONCONTROLLER#1

REDUNDANTMULTILOOP/

CER

REDUNDANT LOCAL BUS/CUBICLE BUS/PERIPHERAL BUS/ I/O/ BUS

REDUNDANTCPU-1


REDUNDANTMULTILOOP/

REDUNDANTCPU-32

(64 NOS CPU)


REDUNDANTMULTILOOP/

CONTROLLER &I/O CARDS

FOPH PANELWITH REDUNDANT

CONTROLLER &I/O CARDS

CWPH PANELWITH REDUNDANT

TURBINE TRIP/PROTECTION, DEHC/TSC/ATT & BMS/FSSS

(9 NOS CPU)

CPU-3

TRIPLEREDUNDANT

CPU-1

TRIPLEREDUNDANT


REDUNDANTMULTILOOP/

CARDT/C RTD

ANALOGINPUT

4-20mA

CARD4-20mA

ANALOGOUTPUT

CARD

BINARYINPUT

CARD

BINARYOUTPUT CARD

T/C RTD

ANALOGINPUT

4-20mA

CARD4-20mA

ANALOGOUTPUT

CARD

BINARYINPUT

CARD

BINARYOUTPUT CARD

ANALOGINPUT

CARD

ANALOGOUTPUT

CARD

BINARYINPUT

CARD

BINARYOUTPUT

#1

TG REMOTEI/O PANEL

#2

TG REMOTEI/O PANEL

#1

SG REMOTEI/O PANEL

#2

SG REMOTEI/O PANEL

FIFLD

FOR DAS, I/OCARDS SHALL BE

NON-REDUNDANTS

FOR TMR CONFIGURATIONI/O CARDS SHALL BE

TRIPPLE REDUNDANT

FOR DAS, I/OCARDS SHALL BE

NON-REDUNDANTS

(FOR MONITORING)

FLUE &CEMS ANALYSER

TO

CEMS OS

TO DDCMISHW

SIG

NA

LS

VMSTOOCAMMS OS

TO DDCMISHW

SIG

NA

LS

SG,STG AND AUXILIARIES

ELECTRICAL GENERATOR & SWITCHYARD

ES = INDUSTRIAL GRADE MANAGED TYPE ETHERNET SWITCH

TSITO TSI &OCAMMS OS

TO DDCMIS HW

SIG

NA

LS

PT/DPT/LT

←20mA

～～

ANALYSERSSTEAM & WATER

TO DDCMIS HW

SIG

NA

LS

MCC/SWGR

KEY BOARD KEY BOARD KEY BOARD

10MBPS

3-53

6 Supervisory Control Panels, Supervisory Desks and Equipment

Panels

7 Enterprises Resource Planning System ERP

8 Monitoring & Information System MMI

9 Performance Analysis Diagnosis and Optimization System PADO

10 Energy Management System EMS

11 Computerized Maintenance & Inventory Management System CMCMS

12 Plant Resource Manager PRM

13 PLC & Other Control Sub System

14 General Field and Measuring Instruments, Flow Elements

15 Environment Monitoring Systems

16 Continuous Emission Monitoring System CEMS

17 Steam and Water Analysis System SWAS

18 Power Supply & Utilities for control system UPS System & 24 V

DC system

19 Erection hardware & Cables

20 Control Valves with Actuators

21 Plant Security and Surveillance System

22 Material Supply, Ware Housing, Erection, Testing and

Commissioning

Tools, Tackle & Calibrating Instruments

Control Instrumentation Laboratory & Testing Equipment

23 Plant Simulations Coupling with DCS system


e-2) Outline of control and instrumentation facilities

(1) DCS: Distributed Control System

Distributed Control System (DCS) will be adopted to ensure safe operation and monitoring and effective

maintenance of the power plants.

With the increase in power demand in many countries in recent years, the requirement for coal-fired thermal

power plants get higher each year. The adoption of higher temperature and pressure steam conditions, the shift

from a drum boiler to once-through boiler, and intermediate load operation are among the requested items. The

ultrasuper critical coal-fired thermal power generation plant has more complex processes, the ability to follow

fluctuating load and startup and shutdown procedures compared to the conventional drum boiler, and the control

logic is also very complicated. The enhanced performance of DCS has contributed greatly for the realization stable

operation of ultrasuper critical plants with such high and complex requirements. It is critical for the stable plant

operation to select DCS with high reliability and excellent maintenance & long-term support system as explained

below.

3-54

The controller is the core of the system’s reliability and has a redundant system by allocating two modules for

each function, with each module being fit with two MPUs (Micro-Processing Units), with aim to maintain the

availability factor for the entire system of 99.99999%. As the control bus of the entire system, the redundant

control bus with the transmission speed of 1 Gbps is installed to which the system components such as the

controller, operation monitoring device and maintenance & engineering device are directly connected. The devices

for boiler control, control of ancillary facilities such as denitration equipment and desulfurization equipment, and

the turbine governor control and protection, etc. are directly connected to the control bus, and can be operated on

the same control bus.

The CPU module, power source module and I/O module are mounted on a special 19-inch rack and each rack is

connected via internal bus modules. The CPU, power source and internal busses must have redundancy as a rule,

and the I/O modules can be single or redundant depending on the importance of the respective process. The I/O

module redundancy configuration must be applicable to all types of systems and the redundancy must be part of

the system function and not achieved with any application software or external wiring. With this, the system can

be configured very flexibly depending on the importance of the process.

The alarm & event analyses will be done for the entire system with the proper temporal sequence, by receiving

time synchronization signals with GPS. The SOE (Sequence of Event) that can display events with the msec

resolution capability is an important function for analysis in case of faults, and the events are controlled property

by collecting temporal data given by the DI modules via respective controller and displaying them with the proper

temporal sequence.

Coal-fired thermal power plants tend to be positioned as a main power source in various countries, and are

expected to operate stably over several decades. When designing the control system, it is critical to thoroughly

consider long-term guarantee and system continuity over an extended period of time, as well as the extended

function and integration function in case of plant expansion in the future. For the future revisions and maintenance,

it is necessary to introduce systems where only necessary equipment can be changed or upgraded (e.g. upgrading

operation monitoring software at the time of Windows OS upgrade and changing CPU modules for a better

computing power) so that the plant maintenance cost and the time needed for the revisions will be reduced.

(2) Outline of SIS (Safety Instrument System) of the Safety Integrity Level 3

For the purpose of preventing grave faults caused by accidental fire or failed large-scale auxiliary equipment in the

coal-fired thermal power generation, etc. the Safety Instrument System of the Safety Integrity Level (SIL) 3 will

be adopted for boiler protection and burner control. SIS must be introduced together with DCS described in (1)

above, connected to the same control bus as DCS, and operated as one integrated system. It displays data

fundamental to the plant operation such as SIS alarms, graphics and SOE from DCS’s operation monitoring device,

and realize efficient operation. The configuration of the CPU, power source and internal buses and I/O modules

are the same as DCS and doubling of every component must be considered. Whether the components are doubled

or not, SIL3 must be maintained and even if a doubled module becomes single due to replacement, etc.

temporarily, the system as a whole must comply with SIL3.

3-55

(3) Outlines of field devices and analyzer

The differential pressure transmitter and pressure transmitter must be installed to measure flow rate and pressure

in the plant’s water supply & steam system, fuel system and air system, etc. For the sensors of the transmitters,

those that have excellent measurement precision and are mounted with silicon resonant sensors requiring no

calibration for a long time must be selected. Depending on the process for which the transmitter is installed, a

transmitter that has multi-sensing function and can display differential pressure and pressure must be adopted to

optimize the number of units to be installed.

For the measurement of O2 for fuel control, multiple zirconia type oxygen concentration meters must be installed

at the outlet of the economizer. To measure the total amount of controlled substances such as NOx、SOx、CO、

CO2, etc. in flue gas from the stacks, the Continuous Emission Monitoring System (CEMS) will be installed. The

infrared analyzer and O2 analyzer will be installed to measure the concentration level, temperature, pressure and

flow rate of controlled substances, perform forms control and transmit data to national agencies.

For the monitoring of water quality, the Steam and Water Analysis System (SWAS) must be installed to measure

pH, conductivity, silica concentration level, turbidity, etc. If denitration equipment is installed, the laser gas

analyzer must be installed at the outlet of the denitration equipment to measure ammonia.

e-3) Trend in recent years

(1) Field digital, integrated equipment control solution

In recent years, with an aim to optimize plant maintenance, the practice of integrated control of field equipment at

the central control room has become more common. In the practice, parameters and diagnosis data of the field

equipment are monitored using field digital signals such as HART (Highway Addressable Remote Transducer), FF

(Foundation Fieldbus) or Profibus. Conventionally, the state of equipment was checked one by one on site, and it

was hard to understand the real-time state of equipment and the creation of maintenance plans was a time

consuming task.

When replacing equipment, parameters had to be set by checking each item very carefully. With the introduction

of the integrated equipment control solution software (PRM: Plant Resource Manager), the field digital signals can

be controlled in an integrated manner, the state of the equipment can be understood from the central control room

without going to the site, and the preparation of the maintenance plans and equipment replacement can be done

smoothly. As for the configuration, PRM is directly connected to the control bus of DCS in 1.1, and the field

digital data is stored in the PC of PRM via the I/O module and CPU module. When designing the system for DCS

and SIS in (1) and (2), I/O module suitable for the type of field digital signals must be selected.

(2) Full-replica plant simulator

Since coal-fired thermal power plants are often positioned as the main power source, they must have reliable

facilities and functions, as well as operators who have ample skills and experience for the stable operation of the

plants. Many countries lack engineers who have sufficient techniques and experience operating supercritical

coal-fired thermal power plants, and the smooth operation of the plants might be difficult even after the plant

construction is completed. As described in (1) Distributed Control System above, the operation of supercritical

3-56

coal-fired thermal power plants is more sophisticated and complex compared to the conventional methods. The

operators must understand the dynamic characteristics of the complex processes, steps for load following, proper

procedure for startup and shutdown, measures for plant faults, etc. However, there are few opportunities for the

operators to experience the plant operation under the same conditions as the actual process.

Given this situation, the full-replica plant simulator is often introduced to train the operators in advance and to

bring their level to that required for the plant commercial operation. The overall configuration of the simulator

includes a plant model, operation monitoring equipment of DCS with virtual operation functions, and a simulator

setting device. Since the plant model is created by experienced engineers based on the dynamic characteristics of

the actual processes, and the control logic of DCS is connected to the plant model with dedicated gateway, the

training can be done in the environment which is almost the same as the actual operation. With the use of this plant

model based on the actual plant, the simulation of plant startup and shutdown, and scenario setting for different

requirements such as load increase are possible. Also, the state of processes during a given plant fault can be

simulated so that the operators can be trained to deal with plant faults properly during the actual plant operation.

The demand for the replica simulator for power plants is very high and the simulator has helped improve the

operators’ skills.

f) Environmental facilities

The environmental facilities of the Project will be adopted to mitigate environmental impacts from the flue gas

and include facilities for the treatment of NOX, SOX and particle matters. For flue gas treatment, the installation

of the electrostatic precipitator, flue-gas denitration equipment and flue gas desulfurization equipment will be

considered. For the flue gas desulfurization equipment, the use of lime-gypsum method is most common in

Japan; however, since there are too many uncertainties such as the suppliers of lime stones and buyers of the

byproduct gypsum, etc. the plan for now is to adopt to the sea water desulfurization system which has been

widely used overseas and has easy facility configuration and operation.

f-1) Electrostatic precipitator

In an electrostatic precipitator, usually the discharge electrode is the negative electrode and flat precipitating

electrode is positive electrode, and extra high-voltage DC is used for charging. When the electric field becomes

stronger, the gas near the discharge electrode is locally fractured generating corona discharge, and negative corona

is produced. In this state, the gas molecules are ionized and numerous negative and positive ions are created. The

positive ions are immediately neutralized at the discharge electrode and the negative ions and free electrons travel

to the precipitating electrode creating a curtain of negative ions.

When the gas containing particle matters enters this electric field, the particles are charged almost instantaneously

due to the collision of particles and ions and electrons as well as the collision of particles and thermalized ions,

and these charged particles travel due to the coulomb force and are captured by the precipitating electrode.

The corona discharge is a phenomenon that when voltage is applied between two electrodes placed in the air and

the voltage reaches a certain value which is determined based on the electrode structure, the short circuit occurs

3-57

between the electrodes and spark is seen. However, if a fine line or sharp edge exists on the electrode and the

electric filed concentration occurs in such area, local breakdown of insulation can occur in the area even if the

applied voltage is not that high. The phenomena such as these are called corona discharge. The electrostatic

precipitator removes particle matters in flue gas by steadily creating such corona discharge.

The characteristics of the electrostatic precipitator are that it is highly efficient since small particles can be

captured with the electrostatic precipitating action, it can save operating costs thanks to small pressure losses, and

it has a wide range of applications for dusts and gases regardless of properties such as size, temperature and

humidity.

Figure 3-18 Electrostatic precipitator

Source：Supplied by Mitsubishi Heavy Industries Mechatronics Systems, Ltd.

f-2-2) Flue-gas denitrification equipment

The denitrification methods are roughly divided into dry method and wet method. In this study, the plan is drawn

with the dry ammonia catalytic reduction method which is widely used in denitrification equipment. The

denitrification principle in the method is that flue gas is injected with ammonia and goes through the catalytic

layer, with which NOX is reduced to harmless nitrogen and steam. It is a very simple process and its chemical

equation is given below:

4NO + 4NH3 + O2 → 4N2 + 6H2O

NO + NO2 + 2NH3 → 2N2 + 3H2O

Figure 3-19 Chemical Process in the DeNOx equipment

Source：Supplied by MITSUBISHI HITACHI POWER SYSTEMS, LTD.

3-58

This reaction occurs via catalyst in the reactor. Since the higher the gas temperature during the reaction, the higher

the denitrification efficiency, the equipment is usually installed in the intermediate flue between the economizer

and air preheater. Most of the unreacted ammonia is broken down to nitrogen and water by the catalyst, but some

is emitted as ammonia. The characteristics of this method include: thanks to the easy process, the equipment is

highly reliable and its operation easy with very few troubles; there is no need to treat effluent thanks to the use of

the dry method; there is no need to reheat flue gas; the equipment offers high denitrification efficiency; and the

process produce few byproducts.

Figure 3-20 Selective Catalytic material


f-2-3) Flue-gas desulfurization equipment

The flue-gas desulfurization equipment use either wet method or dry method. However, most of those currently

installed and operated use the wet method. There are many types of wet desulfurization processes based on the

absorption agent and byproduct, including the lime-gypsum method, water magnesite/magnetite method and sea

water desulfurization method. In Japan, the lime-gypsum method among wet desulfurization methods is the

mainstream as lime stone used as the absorption agent is produced domestically in abundance and the byproduct

gypsum has a high commodity value as a suitable material for cement and gypsum board.

On the other hand, the sea water desulfurization method has a simple facility configuration using sea water and air,

without the need for any chemicals, produces no solid byproduct after absorption process, and the large amount of

sea water used in the condenser for cooling can be used as the absorption agent. For this method, the reliable

facility can be created with less investment and operation cost. For these reasons, the plan was made with the sea

water desulfurization method since there are many uncertainties if the lime-gypsum method is to be adopted, such

as the source of lime stones and buyers for gypsum.

3-59

Table 3-44 The comparison between major desulfurization methods

Seawater desulfurization Limestone/gypsum desulfurization

Process schema

Desulfurization

efficiency

Approx. 90～98％ Approx. 90～98％

Absorber Seawater-oriented bicarbonate ion

(HCO3-)

Limestone-oriented bicarbonate ion

(HCO3-)

Byproduct None Gypsum

Necessary

auxiliary

equipment

Aeration equipment Limestone/gypsum desulfurizing apparatus


The sea water desulfurization method takes advantage of the fact that sea water is naturally alkaline, and causes

the gas-liquid contact between flue gas and sea water so that SO2 in flue gas is absorbed by sea water. The treated

gas is discharged in the air. The stabilization of the reaction process is achieved by oxidizing sulfurous acid (SO3)

into sulfuric acid (SO4 ) through the gas-liquid contact between sea water and flue gas; however SO3 is not

completely oxidized just with the gas-liquid contact of sea water and flue gas, and as a result, effluent will contain

a large amount of SO3 and hydrogen ions generated cause the pH value to go down.

SO2 + H2O → HSO3- + H+ ・・・① (absorption in the absorption tower)

Due to these reasons, more sea water is added to the effluent in the aerating tank to raise the pH value

(neutralization) and the oxidization of SO3 is promoted by further aeration, in order to reduce the chemical oxygen

demand (COD) to below the predetermined value and raise the dissolved oxygen (DO) to above the predetermined

value.

2HSO3- + O2 → 2SO4

2- + 2H+ ・・・② (oxidization through aeration)

H+ + HCO3- → CO2 + H2O ・・・③ (neutralization of H+ generated and HCO3

- from the added sea water)

g) Water facilities for the power plants

Water used in the plants is planned to be river water taken from the Quan Lo-Phung Hiep water way as a rule.

However, since the amount of water obtainable during the dry season is uncertain and the quality of the river water

is not stable, the plan to use river water is supplemented with the plan to introduce seawater desalination units.

3-60

g-1) Amount of water needed for the plants

For the Project, multiple plans are considered in terms of output and facility configuration; namely, two

supercritical plants with 600MW each, two ultrasuper critical plants with 600MW each, and one ultrasuper critical

plant with 1,000MW. In this section, the amount of necessary water was estimated based on the plan with two

600MW supercritical plants since the water use is likely to be the greatest in this plan. The result revealed that the

amount of water required during the construction period is about 2,500m3/day and that after the start of operation

about 6,000m3/day.

Figure 3-21 The example of water treatment process


Table 3-45 Estimated amount of raw water required for two 600MW SC plants

Assumerd usage Required water（m3/day）

Filtered water Purified

water for

plant

Boiler make-up water 949

Bearing cooling water 13

Reclaimed water for condensate

demineralizer

187

Other 20

Demineralizer discharge 542

Purified water use: subtotal 1,711

Bottom ash treatmenet make-up water 614

FGD make-up water 40

Oil tank cooling water 120

Water for berth operation 210

Chemical cleaning water 192

Waste treatment water 360

Spaying water for coal storage yard 320

Water for coal ash slury 170

Drinking water 70

Water for landscape gardening 100

General usage 11

Subtotal 3,918

Clarifier discharge 986

Raw water margin Approx. 20％

（From Raw Water Supply）Demineralizer（RO＋MB）Clarifier/Filtration

・

・

・

・

・

・（To Power Plant）

（To Power Plant）Clarified Water Tank

Demi.Water Tank

（To effluent treatment）（To effluent treatment）

Raw Water Tank

3-61

Required raw water 6,000


g-2) Outline of the seawater desalination unit

There are two methods of large-capacity seawater desalination: the RO system using reverse osmosis and the

MED (multi-effect distillation)/MSF (multi-stage flash distillation) system using the evaporation method.

Table 3-46 The process outline of desalination method

Desalination method Principle Characteristics

Evaporation Sea water is heated to the point of

evaporation and the generated steam is

cooled down to obtain fresh water

With large economy of scale, it is suitable for

oil-producing countries since it uses a large

amount of energy.

Reverse osmosis Seawater is poured into one side of a

container divided with a semipermeable

membrane that allows water to pass

through but not salt. By applying pressure

to seawater, only water passes through the

membrane.

With small power consumption, it is

energy-saving technology. When desalinating

brine water with low salt content, the

operation cost can be reduced.


(Outline of the evaporation method)

Evaporation has been used since the mid-20th Century and the MSF technique is the mainstream at this point. MSF

has higher efficiency and can handle larger capacity than MED, but also has higher facility investment cost and

operation cost as the water must be kept at 110 inside the facility and the facility tends to corrode sooner. On the

other hand, MED consists of multiple evaporation chambers, and steam which is the source of heat enters the first

evaporation chamber. Steam flows inside the heat exchanger pipe, and heat exchange occurs when sea water flows

down outside of the heat exchanger pipe. The supplied steam is recovered as steam condensate, and part of sea

water evaporates and supply heat to the next evaporation chamber. By repeating this process until sea water and

cooling water have the same temperature in the final evaporation chamber, and thereby fresh water is obtained.

Figure 3-22 The process flow of Multi-stage flash distillation

Source：Hitachi Zosen Corporation, Brochure “Desalination Plant Business”

3-62

Figure 3-23 The process flow of Multi-Effect Distillation

Source：Hitachi Zosen Corporation, Brochure “Desalination Plant Business”

(Reverse osmosis method)

This method applies pressure to sea water and forces it to go through the reverse osmosis membrane filter in order to obtain fresh

water. Sea water goes through multiple filters for the removal of seaweed and other foreign matter with the size of 20μm or larger

before being fed into the facility. The sea water then goes through ion change by cationic resin to remove Ca and Mg, and through a

filter to remove foreign matter of 5μm or larger, and is pressurized to the maximum of 70 atm and sent to the RO membrane filter.

As a result, 30 – 50% of the filtered water sent to the RO system is obtained as fresh water.

Figure 3-24 The process flow of Reverse Osmosis method

Source：Hitachi Zosen Corporation, Brochure “Desalination Plant”

h) Coal loading facility

As the Project assumes the use of imported coal for the operation of coal-fired thermal power plants, the facility

was planned assuming the coal procurement via marine transportation based on the 10,000DWT ship plan and

30,000DWT ship plan. When considering the facility, an assumption was made that BAU coal with low calorific

value will be used, for which stable procurement is anticipated, and that 600MW-class supercritical plants with

high coal consumption rate will be adopted.

3-63

Table 3-47 the estimation of annual coal consumption

Estimated plant scale

(for 1 phase )

600MW-class × 2

SC plants

600MW-class × 2

USC plants

1,000MW-class × 1

USC plant

Higher heating value（HHV） 41.08 % 41.88 % 41.96 %

Plant availability 75 % (Aprox. 6,500hours)

Coal use per

year

BAU coal 3,562,618 t 3,494,564 t 2,642,350 t

Targinsky coal 2,816,849 t 2,763,041 t 2,089,222 t

Moolarben coal 2,978,543 t 2,921,647 t 2,209,149 t

Solntsevsky coal 3,536,942 t 3,469,379 t 2,623,306 t


h-1) Number of coal receiving berths and unloading capacity required

Table 3-48 The No of coal shipping berth and the capacity of ship unloadind equipments


h-2) Main coal unloading facilities

The capacity of the unloader was planned so that the berth occupancy ratio is about 50%, and the continuous

bucket elevator type that has small peak rate fluctuation and can reduce the capacity of the subsequent facilities

was assumed. The installation of two unloaders per berth with the unloading efficiency of 0.75 was used in the

planning in case unloading stops due to facility troubles. Two receiving conveyors are planned with the capacity of

two unloaders each. The stacker facility was planned to have the same capacity as the receiving conveyer. Coal

blending is assumed for the reclaimer facility which was planned to be 2 units /phase and to have the capacity

sufficient for one unit to feed the required amount of coal for a day for Phase 1. Coal blending is assumed for the

discharge conveyer. It is planned to have two discharge conveyors per phase, and one unit is to have the capacity

equivalent to the capacity of one reclaimer × peak rate (=1.1).

Port scale 30,000 DWT scale 10,000 DWT scale

Coal use per year 3,560,000 t×3phases 3,560,000 t×3phases

Coal ship Capacity 30,000 DWT 10,000 DWT

Carry efficiency 90 % 90 %

No. of Annual shipments About 131 times About 393 times

Unloader capacity 850 t/h×2units/berth

Unloader handling efficiency 75 % 75 %

Actual handling time About 21 hours/day About 7 hours/day

Handling peparation time 2.0hours 2.0 hours

Total handling time About 23 hours/day About 9 hours/day

Metro correction factor 0.79 0.79

Berth occupancy rate Around 50% Around 58%

Necessary number of berths 3berths /3phases 3 berths /3phases

3-64

Table 3-49 The estimation of Coal Handling Facilities


Figure 3-25 View of each coal handling equipment


Coal unloading facility for 1phase Remarks

Unloader

Type Continuous bucket eleator type

Number of units 2units/1berth

Capacity 850t/h×2units/phase To be 50%×2units.

Receiving conveyor 1,900t/h×2 lines /phase To be a peak rate of 1.1.

Stacker facility

Type Continuous bucket eleator type

Number of units 2units/1phase

Capacity 1,900t/h /unit To be equivalent to receiving

conbeyor capacity.

Reclaimer facility

Type Traveling turning boom hoisting bucket wheel

type

Number of units 2units/1phase To be planned with 2 units for coal

blending operation.

Capacity Required amount of coal for a day for phase 1

Discharge conveyor 200% capacity conveyor : 1 line/1plant

3-65

i) Civil engineering facilities

i-1) Power plant site

i-1-1) Establishing the site elevation

The site elevationof the premise was established based on Vietnam’s guideline No.14TCN 130-2002 “Guide line

for design of sea dykes.” It stipulates that the site elevation is to be based on the highest sea level with a return

period of 100 years. The highest sea level with a return period of 100 years is +2.42m, and by adding an allowance

of 0.5m, elevation of water surface of 0.45m due to climate change, and water surface rise of 0.7m due to storms,

the final figure of +4.07m was obtained.

There is Bac Lieu’s eastern sea dyke with the length of 54km and crown width of 6.5m, stretching from the

boundary of Soc Trang Province which is in the east of the planned site to Ganh Hao town, Dong Hai district in

Bac Lieu Province. The current height is about 3.5m. Based on the plan of the Vietnamese government, the

reinforcement of the eastern sea dyke and the improvement of the southern sea dyke of Bac Lieu Province are

planned to address the rising sea level caused by global climate change. The planned elevation of new sea dykes is

4.0m.

In Japan, a site elevation is determined by comparing the necessary height which is based on the layout of the

main equipment and structures of the power plant and the site elevation which is obtained by adding the allowance

height to the highest sea level estimated with existing data. When the elevation is obtained from the past highest

sea level, the common practice is to add the allowance height of 1 to 2m to the previous highest sea level. Many

power plants have the premise elevation of about 4m. By taking into considerations these facts, the site elevation

for the project is selected to be +4.1m.

i-1-2) Type of seawalls

The seawalls along the coastline and those inland are to have different structures considering the strength and

functions needed for the structure. 1) The structure along the coastline is to be the rock-fill type. The core will be

filled with the core material with diameter of 10-40cm, and the section between the core and the surface layer will

be a layer of rock with diameter of 60-80cm. The surface part of the slope will be cladded with rocks and the

lower part will have a ballast layer (gravels). The ground bearing capacity of the seawalls foundation is small due

to its geological characteristics, and the foundation must be reinforced. As the reinforcement methods, the sand

pile and the cement deep mixing method (CDM), etc. are considered. 2) The seawalls structures inland will be

earth-fill type. The slope will be stone mansonry with 30cm thickness. The foundation of seawalls will be

improved with sand pile against compressive and shear stresses. In the detailed design stage, the stability analysis

of the seawalls must be done.

i-2) Water intake and discharge outlet facilities

i-2-1) Water intake facilities

In the plan for the power plants, two alternatives are considered based on the coal transportation method; namely,

the 30,000DWT coal ship alternative in which coal ships come directly from outer sea, and 10,000DWT coal ship

alternative in which coal is received from domestic vessels via a coal center planned in Duyen Hai in Tra Vinh

Province. Therefore, the outline of the water intake facilities is shown in Table. 3-50 for respective alternative.

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Table 3-50 Outline of water intake facilities

30,000DWT coal ship 10,000DWT coal ship

Cooling water supply

method

For cooling water, sea water is

taken from sea area inside the

breakwaters with surface water

intake method.

Cooling water is taken from the Cai

Cung water way which is to be

expanded, with surface water intake

method.

Water intake channel

structure

Open channel with the length of

about 3.0km and box culver with

the length of about 2.2km

Box culver with the length of about

3.0km


For cooling water, a large amount of relatively low-temperature water must be supplied steadily without

significant temperature change throughout the year and the day. The area being located in the Mekong Delta

region with the shoal, the deep water intake is not the best option in terms of cost and facility operation since the

distance between the intake to the power plants will be great. Thus the surface water intake method will be

adopted. The intake channel will be an open channel and box culvert. The required cooling water was estimated to

be 55.3m3/s for one phase of 1,200MW, based on the average sea water temperature in the area. For all three

phases, about 160 m3/s of water will be required. The type of foundation and ground improvement methods for

water channel will be examined in the detailed design stage.

i-2-2) Cooling water discharge outlet facility

The outline of the two plans on outlet facility is shown in Table 3－51.

Table 3-51 Outline of the discharge outlet facilities


Cooling water discharge

method

Discharge to the outside of the

breakwater using submerged

discharge method

Discharge to the outside of the

breakwater using submerged

discharge method

Discharge channel structure Install steel pipes to the water depth

of about 5m

Install steel pipes to the water depth

of about 5m


The discharge methods are broadly divided into surface discharge and submerged discharge. The submerged

discharge is divided into submerged discharge from the seawall and offshore submerged discharge. The area has a

shoal and it is hard to ensure enough water depth; thus the area is not suitable for submerged discharge directly

from the seawall. Therefore, the water intake and discharge outlet will be separated by breakwater.

Regarding the discharge temperature, in the case of surface discharge, the temperature rise of about 8 was

estimated with the maximum water use of 166m3/s; thus if the maximum sea water temperature is assumed to be

29 , the discharge temperature will be roughly 37 . The Vietnamese effluent regulations require the discharge

temperature to be 40 or less. The calculated temperature meets the standard; however since the impact that

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thermal effluent has on the environment is great, submerged discharge is assumed at this stage. It is necessary to

estimate the diffusion of thermal effluent in the detailed design stage. The types and foundation and methods of

ground improvement for outlet channel will also be examined.

i-3) Breakwater

The outline of the two plans for the breakwaters is shown in Table 3-52.

Table 3-52 Breakwater outline


Breakwater structure and scale Two breakwaters about 3,000m

long

Two breakwaters about 2,750m long

Breakwater direction Approx. north to south Approx. north to south


The main functions of breakwaters are to secure the calm section of the sea for cooling water intaske, loading and

unloading fuel, equipment and materials. The level of waves height needed for loading and unloading is 0.5m -

1.0m or less for regular loading, and 0.5 m or less for oil and coal. The points below must be considered when

deciding on the arrangement of the breakwaters.

① The entry to the port must avoid the most frequent and strong wave direction to minimize invading waves.

The axis of the breakwater must be in the direction to shield the most frequent and strong waves.

② Measures against reflected waves, convergence and secondary undulation from the waves that entered the

port.

③ The port entrance should have enough width for ships to travel safely and placed to facilitate easy entry and

departure.

Based on the records taken at the Bac Lieu station, the dominant wave direction is east and southwest. The

breakwaters are expected to become an effective shield and the port entrance is not open to the directions of most

frequent or strong waves. The type of breakwaters planned is rubble mound breakwater since they can be built on

weak ground and the construction facilities are simple and work is easy. The length of the route a ship requires to

berth or that from the port entrance to the mooring berth must consider the stopping distance of ships. The

structure must be designed with external forces and stability computation based on the design waves in the

detailed design.

Figure 3-26 Typical section of rubble mound breakwater


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i-4) Berth for receiving coal ships

The outline of the two plans for the berth is shown in Table. 3-53.

Table 3-53 Outline of specifications for the berth for receiving coal ships


No. of berths 3 3

Berth length 748m 630m(210m×3)

Berth depth 12m 8.8m


The length and depth of the berth are established based on Vietnam’s standard port technology.

i-5) Approach channel and basin

i-5-1) Approach channel

The outline of the two plans on the approach channel is shown in Table. 3-54.

Table 3-54 Outline of the approach channel


Ship length 176m 129m

Approach channel width 90m 71m

Approach channel water depth 12.0m 8.8m


The width and depth of approach channel are established based on Vietnam’s standard port technology. As for the

approach channel width, a single approach channel is assumed since the frequency of ships passing in the dredged

channel is likely to be low.

i-5-2) Basin

The outline of the two plans for the basin is shown in Table. 3-55.

Table 3-55 Outline of the basin


Area Circle with diameter of 510m

(approx. 204,000 ㎡)

Circle with diameter of 195m

(approx. 30,000 ㎡)

Water depth 12.0m 8.8m


The area and water depth of the basin is designed based on Vietnam’s standard port technology.

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i-6) Dredging

The amount to be dredged was calculated based on the approach channel and basin estimated above, for the

30,000DWT plan and the 10,000DWT plan. The results are shown in Table. 3-56.

Table 3-56 Dredging amount and approach channel length


Dredging amount during construction

(Approach channel and turning basin)

8.1 million ㎥ 4.6 million ㎥

Approach channel length 12km 6 ㎞


The necessary water depth for approach channel and basin calculated based on Vietnam’s standard port technology

is 12.0m and 8.8m, respectively. The length of the approach channel for the 30,000DWT coal ship alternative was

determined to be 12km, which is the distance to ensure the water depth of 12m as confirmed with depth contours

of the marine chart. The length of the approach channel for the 10,000DWT coal ship plan will be 6km in order to

have the water depth of 9m. The dredging amount was roughly calculated by assuming that the gradient of the sea

bottom is uniform and using the average end area method based on the cross-section estimated from the plot

plan. The calculation produced about 8,100,000 m3 for the 30,000DWT coal ship plan and about 4,600,000 m3 for

the 10,000DWT coal ship plan. The approach channel and basin will have a significant impact on the fuel

transportation plan, and they must be examined thoroughly including bathymetry.

Figure 3-27 Dredging facilities

Source: Construction quantity calculation manual for port・ fish port(draft) Ministry of Land,

Infrastructure, Transport and Tourism Hokkaido Regional Development Bureau

Suction dredger Sand discharge pipe

Grab dredger Barge carrying

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i-7) Coal storage yard

i-7-1) Estimated coal consumption per day

The average coal consumption per day for Phase 1 is estimated as follows:

Table 3-57 The estimation of daily coal consumption

Assumed plant scale 600MW-class × 2

SC plants

600MW-class × 2

USC plants

1,000MW-class × 1

USC plant


Plant availability 75 % (approx. 6,500 hours)

Average coal

consumption

per day

BAU coal 9,760 t 9,574 t 7,239 t

Targinsky coal 7,717 t 7,570 t 5,724 t

Moolarben coal 8,160 t 8,004 t 6,052 t

Solntsevsky coal 9,690 t 9,505 t 7,187 t


i-7-2) Assumed coal pile size

The coal storage yard for Phase 1 will be planned to have a total of three piles, with one big pile in the middle and

a medium-sized pile on both sides of it. The pile sizes are assumed as below:

Table 3-58 The dimesional estimation of coal stock pile

Medium pile Large pile

Coal bulk specific

gravity

Approx. 0.8 t/m3

Number of piles 2 piles 1 pile

Pile width W W1=40 m W2=80 m

Pile-to-pile

clearance W0

W0=16 m

Pile height H 15 m

Pile repose angleθ 40°

Pile length L Approx. 200 m

Pile cubic volume 66,371 m3 × 2 piles 186,371 m3 × 1 pile

Pile shape drawing


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i-7-3) Amount of coal to be stored (expressed in the number of days)

Table 3-59 The estimation of coal stock yard capacity

Assumed plant scale 600MW-class × 2

SC plant

600MW-class × 2

USC plant

1,000MW-class × 1

USC plant


Coal bulk specific gravity Approx. 0.8 t/m3

Coal storage

days

BAU coal 26.2 days 26.7 days 35.3 days

Targinsky coal 33.1 days 33.7 days 44.6 days

Moolarben coal 31.3 days 31.9 days 42.2 days

Solntsevsky coal 26.3 days 26.9 days 35.5 days

Average coal

storage days

29.2 days 29.8 days 39.4 days

Coal storage capacity for one phase 1: (66,371m3×2＋186,371m3)×0.8＝255,290t


i-7-4) Miscellaneous

Coal is assumed to be stored in the open and the pile height is to be 15m. Since the site has weak ground, ground

improvement and ground stabilization study will be examined in the detailed design stage. The installation of wind

shield nets will be considered for environmental protection.

i-8) Ash disposal yard

i-8-1) Service life of ash disposal yard

In this power plant area, about 150ha will be secured for ash disposal for all three phases, with the dyke height

of 7m (150ha×7m＝approx. 10,500,000m3)


Wind shield net

Figure 3-28 Wind shield net diagram

Reclaimer foundation

Stucker foundation

Coal storage yard

Land fill

Ground line

Sea wall

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Table 3-60 The estimation of ash yard capacity

Assumed plant scale 600MW-class ×2

SC plants

for 3 phases

600MW-class×2

USC plants

for 3 phases

1,000MW-class×1

USC plant

for 3 phases


Plant availability 75 % (approx. 6,500 hours)

Coal ash slury proportaion 1.1

Useful life of

ash dump

BAU coal 21.4 year 21.8 year 28.9 year

Targinsky coal 14.4 year 14.7 year 19.4 year

Moolarben coal 8.3 year 8.4 year 11.2 year

Solntsevsky coal 9.9 year 10.1 year 13.3 year

Average years 13.5 year 13.8 year 18.2 year


In each plan, the area for ash disposal lasting 13 – 18 years is secured; therefore, if the number of years of

operation is assumed to be 25 years, about 30 – 50% of coal ash must be utilized.

i-8-2) Effective utilization of coal ash

Coal has 5 – 30% ash content and coal-fired thermal power plants produce a large amount of coal ash. With an

aim for effective utilization of resources, Japan has worked to expand the technology for utilizing coal ash. Here,

the cases of coal ash utilization are introduced for the fields shown below:

Figure 3-29 Domestic filed of coal ash effective utilization


Cement

Architecture

Civil works

Agriculture andFisheries

Chemical industry

Cement raw material for the production

Cement admixture

Fly ash cement

Raw concrete admixture

Lightweight concrete aggregate

Artificial lightweight aggregate

Tile , brick , ceramics

Concrete product

Asphalt filler

Roadbed material

Subgrade material

Filling material

Filler (for coal mine)

Grout

Fertilizer

Compost

Artificial fish reef

FCC concrete

Flue gas desulfurization material

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As for coal ash properties, the ratio of fly ash and clinker ash (bottom ash) in generated coal ash is about 9:1. The

shape of coal ash tends to be round for ash with a low melting point and indefinite shape for ash with a high

melting point. The average particle size of fly ash from pulverized coal combustion is about 25μm, and as a

ground material, it is coarser than clay and finer than fine-grained sand, and is similar to silt. As for the chemical

composition, it contains silica (SiO2) and alumina (Al2O3) accounting for about 70 to 80%, and is close to

mountain soil. Ash also contains small amounts of ferric oxide (Fe2O3), magnesium oxide (Mg0) and calcium

oxide (CaO).

Fly ash has been put to practical use as cement admixture in Japan in the early 1950s, and since the standard has

been set for fly ash in 1958 and for fly ash cement in 1960, fly ash has been used widely in concrete for general

structures. Also starting in 1978, ash has been used as an alternative to clay in cement and as of 2003, 70.1% of all

ash that was utilized was used for this purpose. Other uses include utilization as a material for roads, ground

improvement and land reclamation in the civil engineering field, and as artificial lightweight aggregate in the

construction field. In agriculture, forestry and fisheries, it is used as fertilizer and soil amendment.

i-8-3) Ash disposal methods and environmental measures

In order to minimize the impact on the air and water environment, high concentration slurry disposal system is to

be used for ash disposal. As a measure to protect the environment against heavy metals and chemicals contained in

coal ash, the creation of an impervious layer at the bottom of the ash disposal yard is planned. For this purpose, a

polyethylene layer (geomembran) or asphalt concrete layer are considered. The coefficient of permeability for the

ground is ensured to be 105cm/s or less, which is considered standard. In future examinations, it will be critical to

clear Vietnamese standards and to have sufficient discussions with relevant organizations. Aside from seepage

control work, effluent treatment facilities must be considered in order to comply with effluent standards.

i-8-4) Miscellaneous

For the ash disposal yard, a 7m-dyke is planned to be constructed for ash storage. As the site has weak ground, the

stability computation regarding ground improvement, stability analysis will be conducted in detailed design in the

future to determine the structural parameters.

i-9) Foundation for main structures

The concept regarding the foundation for the structures is explained in this section. Since the ground strength of

the power plant premises is small, it must be strengthened and reinforced concrete foundation or other measures

for foundation shall be used. The foundation will be designed based on the structure and load of the building and

will be steel pile, bored precast pile driving pile or cast-in-place pile. For the foundation for the heavy load, pile

must be long enough to reach the load bearing layer. For the foundation structure of the medium to heavy load will

be the PC pile with the length to reach the load bearing layer. For light to medium load, the standard RC pile will

be used. For the ground treatment for the channel, box culvert, tanks, etc., the adoption of CDM or drainage

consolidation method will be assumed. If the light load is expected for the structure that will be built on the

improved ground, the spread foundation will be adopted. It will be necessary to conduct additional boring and

various surveys to confirm the ground properties, check the ground strength and narrow down the type, length and

radius of the pile as well as the ground improvement methods in the detailed design stage. Countermeasures for

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the consolidation settlement of the ground must be considered.

i-10) Stack

The stack structure will be made of steel. The basic height of 200m will be adopted, which is also adopted by

many large-scale coal-fired thermal power plants in Japan. The final height and radius will be determined after

examining the diffusion phenomena. As for the foundation, pile type, length and radius will be designed based on

the ground survey result.

3) The content of the proposed Project

The Project plans to build supercritical or ultrasuper critical coal-fired thermal power plants that use imported coal

and ease the power supply and demand situation in Vietnam, supply power to the southern region of Vietnam, and

contribute to the improvement of energy security for the entire Vietnam through the power plants.

a) Planned power plant site

The planned power plant site is located in Cai Cung which is between Dong Hai district and Hoa Binh district in

Bac Lieu Province, and is 280km southwest of Ho Chi Minh City. The area is in the Mekong Delta region and

faces shoals, and has mangrove forests near the coast.

There are two options for the coal procurement for the Project; namely, procurement with the use of 30,000DWT

bulk ships (30,000DWT plan) and the procurement with 10,000DWT bulk ships (10,000DWT plan). The required

scale for port facilities for coal receiving is different for each plan. In the 30,000DWT plan, the area needed for the

planned power plant site includes the area for power generation facilities of about 482ha and the area for

coal-receiving port facilities of about 620ha. On the other hand, the 10,000DWT plan needs the area for power

generation facilities of about 499ha and that for port facilities for coal receiving of about 360ha.

b) Outline of main power plant plans

The main power plant plans for the Project are as follows:

Table 3-61 The design outline of this project

Fuel procurement Coal imported from foreign countries (Indonesia, Australia, Russia, etc.) via marine

transportation

Transmission line

connection Connected to the 500kV system or to the 500kV and 220kV systems

Plant

configuration

600MW-class SC plant

× 2 units × 3 phases

600MW-class USC plant

× 2units × 3 phases

1,000MW-class USC plant

× 1 unit × 3 phases

Steam condition Main steam：24.1MpaA, 566


Main steam：24.1MpaA, 593


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Plant efficiency

(HHV, Gross) 41.08 % 41.88 % 41.96 %

Plant cooling

water Use sea water from nearby sea

Boiler type Supercritical pressure variable pressure operation once-through boiler: radiant reheat type

Turbine type

Tandem compound 3 casing 4 flow exhaust


Tandem compound 4

casing 4 flow exhaust

Reheat-regenerative

type


4) Issues in adopting suggested technology and systems and their solutions

The issues for the implementation of the Project revealed in this study are as follows:

a) Coal procurement method

There are several plans for procuring imported coal, but there are still too many uncertainties. Therefore,

more information must be collected regarding the sources of coal, procurement cost, scale and schedule of

the coal transfer stations in Vietnam, etc.

b) Offshore engineering work for the port facility development

The Project assumes marine transportation for the coal procurement and port facilities must be constructed

on the planned power plant site in order to receive coal. However, the area is in the Mekong Delta region

and has shoals, requiring large amount of offshore engineering work. It will affect the power plant

development since more land and more dredging work will be needed, and the construction period will be

longer and cost will be significantly higher. The measures to ease the impact will be needed, such as the

early start of the civil engineering work and optimizing the scale of the port and harbor area.

c) Method of procuring water for plant use

It is necessary to establish a way to procure the entire amount of water needed for plant use in a stable

manner in the rainy season and in the dry season. If surface water is to be taken from the water way, the

design of the water intake facilities such as the potential expansion of the water way, the amount of water

required and other matters must be examined thoroughly. If the introduction of seawater desalination units

is to be considered, an evaluation must be done in terms of facility investment such as the effect on the

generation cost. Additionally, water intake in the area will require an approval by the local people’s

committee and if the water way expansion work is required, such work will likely be implemented by the

people’s committee; thus the coordination among the stakeholders will be needed.

d) Transmission line development schedule

As for the transmission line construction in Vietnam, the construction plan starts as a necessary

infrastructure after the power plant construction plan is approved. Based on the progress of many projects,

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the development is delayed in many projects at this point; thus the transmission line development plan

along with the power plant development schedule must be checked to ensure that the power plants can start

operation without delay. The information must also be gathered on the owner and the financing for the

construction of such transmission facilities.

e) Protection of mangrove forests around the planned power plant site

Mangrove forests exist on and around the planned power plant side, and if imported coal is procured

through marine transportation, the forests could not be completely excluded from development. However,

more consideration for the power plant layout is needed to reduce the area subject to development as well

as environmental load. Also, the feasibility of additional measures such as planting mangroves in other

areas must be examined.

f) Development of access road, etc. to the planned power plant site

Even though the National Highway 1 exists as a major highway near the planned plant site, the access roads

from the National Highway 1 to the planned plant site are in poor condition. Therefore, roads and bridges to

the power plants must be planned by considering their strength to facilitate the transportation of heavy

loads.

g) Lack of experience in O&M for SC and USC plants such as once-through boiler

At this point, the supercritical plants are planned to be constructed but not actually operated. Therefore,

situation of the earlier projects must be monitored, and training by Japanese engineers, inviting O&M

advisors, etc. must be considered as necessary.

Chapter 4 Evaluation of Environmental and Social

Impacts

4-1

(1) Analysis of Current Environmental and Social Situation

1) Site location

The planned construction site of Bac Lieu power plants (Bac Lieu PGC) is on the right side of the Cai Cung

Canal that is between the Long Dien Dong settlement in the Dong Hai district and Vinh Thinh settlement in the

Hoa Binh district in the coastal area of Bac Lieu Province (Cai Cung Canal is one of the large sewer lines of

Bac Liew Province, which flow into the sea). There are settlements along the canal and on the northern side.

Positional coordinates for the base point of the boundary of the premises: southeastern end: X: 563568, Y: 1010496

(Geodetic datum: WGS84）

Boundary of the site

・Southern boundary: about 3km along the Bac Lieu sea levee

・ Eastern boundary: about 1.5km along Cai Cung Canal

(The road construction along the canal is planned for the future)

・Northern and western boundary: almost parallel to Bac Lieu sea levee and Cai Cung Canal

Figure 4-1 Power plant location

Source: prepared by Study Group based on Google

Planned site－Cai Cung

Bac Lieu City

Long Dien Dong settlement Vinh Thinh settlement

Cai Cung Canal

4-2

2) Natural environment

a) Weather condition

The long-term weather data for areas in and around the plant site have been obtained at posts below:

Table 4-1 List of weather measurement posts in and around the Project area.

No. Measurement

posts

Years for which data

are accumulated Types of data measured Category

1 Ganh Hao 1979-2013

Rainfall amount, water level,

river water temperature, and

saline concentration

Hydrologic gauging

station

2 Con Dao 1979-2013 Water level and waves Hydrologic gauging

station

3 Bac Lieu 1980-2013

Air temperature, amount of

evaporation, rainfall amount,

wind and humidity

Meteorological station

4 Gia Rai 1978-2013 Rainfall amount Hydrometeorology

station


The statistics of air temperature, humidity and rainfall amount measured at the Bac Lieu station between 1980

and 2013 are shown in the tables below.

The southern region is high in humidity and amount of sunlight thanks to its equatorial tropical monsoonal

climate. Unlike northern and central regions, it is hot throughout the year. The climate in the southern region is

divided into rainy season (May to Nov.) and dry season (Dec. to Apr.).

Table 4-2 Air temperature at the Bac Lieu station (1980-2013) (°C)

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year

Average 25.3 26.0 27.3 28.5 28.3 27.5 27.1 26.9 26.7 26.6 26.5 25.5 26.8

High 34.3 33.3 34.6 36.7 36.5 35.7 33.6 33.7 34.2 33.3 32.6 32.5 36.7

Low 17.1 18.3 18.8 21.4 22.0 21.7 21.4 21.4 21.8 21.7 19.0 16.4 16.4


Table 4-3 Humidity at the Bac Lieu station (1980-2013) (%)


Average 81 80 79 79 84 86 87 88 89 89 87 84 84

Low 32 36 44 44 47 50 55 48 50 52 46 46 32


4-3

Table 4-4 Rainfall amount at the Bac Lieu station (1980-2013) (mm)


Rainfall 4.8 3.7 15.5 57.6 203.3 281.2 273.3 277.5 308.2 306.4 173.3 42.6 1947

Rainy

days 2 1 2 5 17 21 22 22 23 22 14 6 157


The statistics of the storms that originated between 1995 and 2005 in the East China Sea and Vietnam’s waters

are shown in the tables below. Many storms occur between October and the middle of December; however, they

rarely make landfall in the area south of the Mekong Delta.

Figure 4-2 Statistics of storms occurred on East sea and sea area of Vietnam (1995-2005)


The direction of the prevailing wind is east and southwest. Oftentimes, the direction of the prevailing wind

during the rainy season is southwest and east during the dry season.

Table 4-5 Annual wind direction and speed at the Bac Lieu station (1980-2013)


Probability (%) 22.0 5.0 10.6 20.2 6.7 6.9 15.2 8.6 4.9

Average wind speed

(m/s) 2.3 2.9 3.1 2.8 2.6 2.4 2.7 2.7


4-4

Table 4-6 Wind direction and speed during the rainy season at the Bac Lieu station (1980-2013)


Probability (%) 24.8 4.3 6.7 6.1 3.3 8.6 25.0 14.3 6.8

Average wind speed (m/s) 2.2 2.5 2.6 2.4 2.6 2.4 2.8 2.8


Table 4-7 Wind direction and speed during the dry season at the Bac Lieu station (1980-2013)


Probability (%) 18.0 5.8 16.1 40.1 11.5 4.4 1.2 0.5 2.3

Average wind speed (m/s) 2.3 3.2 3.2 2.9 2.6 1.9 1.6 2.2



b) Geography and geology

A vast plain called Mekong Delta stretches in southern Vietnam. There are no hilly areas around the site planned

for the power plants. With the average elevation of +0.4~0.8m above sea level, the low land area is covered with

water throughout the year. The overall area is flat with hardly any slopes.

As for the nature of the soil in the Cai Cung site, the ground has a low load bearing strength, and the soil must

be improved and compacted as appropriate in order to enhance its load bearing strength.

Figure 4-3 Wind direction probability distribution at the Bac Lieu station

Tendency for southwest wind

in summer and east wind in

winter

4-5

c) River water

The Mekong Delta region including the coastal area of Bac Lieu Province has a continuous low land, and river

water is affected greatly by tides of the sea. Because of the effect of the saline concentration and water

discharged from the nearby shrimp farms, the surface water quality control is very difficult, making the use of

surface water a great challenge. The use of ground water is also hard since the ground must be drilled to the

depth of 80 to 100m and the use is limited to consumption in everyday life.

Therefore, water required by Bac Lieu power complex for cooling and for plant use must be taken from the

Quan Lo reservoir that is in the Vinh My Canal area across National Highway 1 in the north, by pumping water

through pipelines of about 15 km as shown in the figure below. A dam system is constructed in the reservoir to

prevent inflow of salt water caused by the tides and thus supporting agricultural production. The intake of a

large quantity of water could impact the stable supply of agricultural water to the surrounding areas, and water

intake and irrigation water must be coordinated through the reservoir management office.

Figure 4-4 Suggested pipeline route to supply water to Bac Lieu power complex


The statistics of river water temperature at Ganh Hao near Bac Lieu power complex is shown below:

Table 4-8 Average river water temperature at neighboring Ganh Hao measurement post (1978 – 2013)


Average 25.9 27.0 28.5 30.0 30.1 29.2 28.8 28.7 29.0 29.1 28.5 27.2 28.5

High 29.7 32.0 31.9 32.4 33.0 32.4 32.0 32.0 31.9 32.6 31.3 30.4 33.0

Low 24.2 24.0 23.9 26.5 27.0 25.8 25.6 25.5 26.4 26.2 25.4 23.3 23.3


National Highway 1

Bac Lieu site

Pumping station

Reservoir

4-6

ｄ）Sea water

The flow of sea water changes by season, with currents coming from the south in summer and from the north in

winter.

Figure 4-5 Sea current during summer and winter on East Sea

Summer Winter


Table 4-9 Average sea water temperature at Vung Tau (1978 – 2013)


Average 26.4 26.5 27.7 29.3 30.0 29.4 28.6 28.4 28.5 28.8 28.3 27.2 28.3

High 29.5 30.0 31.5 32.1 32.5 32.2 31.8 31.4 31.9 31.6 31.0 30.3 32.5

Low 23.8 24.0 24.1 25.2 26.7 25.4 25.6 25.0 24.0 24.7 24.0 24.8 23.8

* Vung Tau is to the north of Bac Lieu site by one degree of latitude.


4-7

e) Status of the ecosystems

Fig. 4-6 shows various types of eco-regions in southern Vietnam. The area has six main types of eco-regions

(Indochina mangroves, Tonle Sap·Mekong peat swamp forests, Tonle Sap freshwater swamp forests, SE

Indochina dry evergreen forests, S. Vietnam lowland dry forests, and S. Annamites Mountain rain forests). The

Mekong Delta region has the first four types of the eco-regions. At the coastal region downstream of the

Mekong River where Bac Lieu Province is located, the representative eco-region of the area is Indochina

mangroves (Fig. 4-6).

Figure 4-6 Vegetation in southern Vietnam

Source: “Evaluation of Vietnam’s tropical forests and biological diversity” 2013 version,

by Sun Mountain International and the Cadmus Group

Bac Lieu Province

4-8

Based on its specific ecological conditions, the Mekong Delta region contains various and internationally

recognized protected areas, especially that for birds (Fig. 4-7). Among protected areas of Bac Lieu Province, the

province has one area that is designated for birds and is of great significance.

Figure 4-7 Protected areas in southern Vietnam

Source: “Evaluation of Vietnam’s tropical forests and biological diversity” 2013 version,

by Sun Mountain International and the Cadmus Group

3）Social environment

a) Land use in the Dong Hai district (2012 statistical yearbook data)

Total district area: approximately 563.3km2

Agricultural land: 48,534 ha

(38,398 ha is used for aqua-farming, 956 ha for farmland and 2249 ha for salt field)

Forest reserve: 1870 ha

The land planned for Bac Lieu PGC construction is comprised mainly of forest reserves, land used for

low-production aqua-farming, and salt fields. According to the developmental vision for 2020 to 2030, the Cai

Cung area will be continuously developed for aqua-farming for shrimp, salt fields and the coastal forest reserves

through forestation. There are very small number of households and residential areas in the Project area at

Bac Lieu Province

4-9

present, with no plan for further development; thus the area is advantageous in that it offers potential for

relocating the residents at low cost. Currently, there is no factory in the neighboring areas and no environmental

issue such as air pollution.

b) Ethnic groups

According to the 2012 statistical yearbook, the population of Bac Lieu Province is 872,400 and is made up with

Kinh, Krom, Hoa (Chinese), Tay, Nung, Tai, Muong and Cham peoples. The ratio of the Kinh people is the

highest among all the peoples. Ethnic minorities and rarities reside mainly in northern Vietnam.

Figure 4-8 Map of ethnic group distribution in Southern Vietnam

Source: "IKAP Network for Capacity Building in MMSEA", case study funded by

Swiss Development Coorperation (SDC), 2005

c) Social infrastructures (2012 statistical yearbook)

Municipalities: the area has 11 administrative units of the municipality level (10 municipalities, 1 town

and 84 villages).

Total population: 144,750 persons with 31,924 households

Economical structure: agriculture, forestry and aqua-farming: 60％

industries and construction: 17％

trade and service: 23％

Port: there is no sea port in Bac Lieu Province.

Canal: there are many canals in Bac Lieu Province, facilitating the travel of fishing boats.

Bac Lieu Province

Ho Chi Minh city

4-10

Vehicular traffic: there are two ways to access the power plants from downtown Bac Lieu by road

① Route going through the coastal road (base: 6.5m, width: 3.5m)

There are many bridges on the way, which will need reinforcement for the

transportation of heavy loads. The bridge over the river right before the site is under

construction as of December 2014, and the river must be crossed by boat.

② Route going through the National Highway 1, traveling the Gai Rai district to south and

reaching the coastal road.

Unpaved roads continue on the way.

The Provincial People’s Committee of Bac Lieu intends to focus on the development of the area, and there is a plan to build a road with a width of 40m as shown as in Fig. 4-7 prior to the power plant construction. The new road will start from the National Highway 1 which runs 10km away from the coast and parallel to it, and end somewhere near the power plant area. Once the road is completed and connected to the existing coastal road, access to the area will be more convenient and the social development of the surrounding areas can be expected.

Figure 4-9 Access roads to the site

Source: prepared by Study Group based on Google

Downtown Bac Lieu

National Highway 1

Coastal road

①

②

③

4-11

4) Forecast future (The case the project has not been carried out)

This Project is Phase 1 (1,200MW) of the power generation complex planned for the Dong Hai area, Bac Lieu

Province in southern Vietnam with the total output of 3,600MW, and its scope includes the construction of

coal-fired thermal power generation plants, port facilities for coal transportation and water intake and discharge

facilities. Once completed, it is expected to supply electricity not only to the customers in Ho Chi Minh, a city

of commerce, but also to the customers in southern Vietnam in and around Bac Lieu Province, thereby

improving energy security.



coal TPP; thus the job creation in southern Vietnam is also anticipated.

If the project has not been carried out, there is a fear of power supply shortage to the Vietnam southern region.

Also, there is a fear of delay development of Dong Hoi district.

4-12

(2) Environmental Improvement Effects from the Project Implementation

1）Environmental and mitigation measures for air quality

In this project, not only the Vietnamese emissions standards but also international emissions standards (e.g.

International Finance Corporation’s Environmental, Health and Safety Guideline for Thermal Power Plants,

2008) must be followed regarding pollutants in emissions.

a) Sulfur Oxides: SOx

If flue gas desulfurization (FGD) equipment to absorb and remove SOx in flue gas is not installed, SOx in

flue gas would be emitted straight into the air. For this project, the adoption of flue-gas desulfurization

equipment using the wet lime-gypsum method (removal efficiency of 85-98%) which uses lime for

desulfurization, has been widely utilized internationally and has high removal efficiency, or similar

equipment will be considered.

b) Nitrogen Oxides: NOx

If flue-gas denitration (FGD) equipment to absorb and remove NOx in flue gas is not installed, NOx in flue

gas would be emitted straight into the air. For this project, the adoption of denitration equipment using the

selective catalytic reduction method (SCR) (removal efficiency of 85-98%) which uses ammonia for

denitration, has been widely utilized internationally and has high removal efficiency, or similar equipment

will be considered.

c) Particle Matter: PM

The adoption of electrostatic precipitator (ESP) which has been widely utilized internationally and has high

removal efficiency (96.5-99.95%) or similar equipment will be considered.

d) Environment-related reference values used in the Project

Regarding the design values used in the Project in terms of air pollutant emissions, the Vietnamese national

technological standard for emissions from thermal power generation QCVN22:2009/BTNMT (in the case of the

Project, output factor of Kp=0.85, regional factor of Kv=1.0 are applied) was used as a base, and the most strict

of that or the standards set for thermal power generation boilers (2008) in the Environmental, Health and Safety

Guidelines (EHS Guidelines) issued by World Bank Group’s International Finance Corporation (hereinafter

IFC) are adopted. The design values for pollutant emissions and target values for pollutant concentration for the

Project are shown in Table 4-10. Since design emission values cannot be very specific at this stage, the values

commonly seen for coal-fired thermal power plants in Vietnam are used for reference (given by local

consultants).

4-13

Table 4-10 Emissions at the stack outlet and reference values (limits)

Parameter

Emissions at stack outlet

(each unit) (mg/m3)

Vietnamese standard: QCVN 22:2009/BTNMT (mg/m3)

International standard: IFC (mg/m3)

Plant capacity ≤1200MWKp = 0.85, Kv =1.0

Plant capacity >1200MW Kp = 0.7, Kv =1.0

NOx 250

850 (coal property: volatile matter

content ≦10%）


content ≦10%) 510 552.5

(coal property: volatile matter content＞10%）


content＞10%）

SOx 140 425 350 200 - 850

PM10 50 170 140 50

PM2.5 35


2) Estimation of air pollutant diffusion

In order to estimate the level of environmental impact in the surrounding area from the emission of air

pollutants from the power plants, air diffusion was estimated. The one-hour values and 24-hour values of SO2,

NO2 and suspended particulate matter were estimated to confirm that the reference values for respective hour

stipulated in the Vietnamese environmental standards and IFC / World Bank (WB)’s EHS Guidelines were met.

a）Methodology

IFC’s EHS Guidelines states that “the impact must be assessed through qualitative and quantitative assessment

with the use of the baseline air quality assessment and air diffusion model, in order to assess the expected ground

level pollutant concentration. The data on the local air, climate and air quality must be used when modeling the

diffusion, downwash, backwash, prevention of vortex effects at the source of emissions, nearby buildings and

topographic features. The diffusion models used shall be those internationally recognized or of equivalent

quality.”

The area around the site are relatively flat; however, the ground level pollutant concentration was estimated

using AERMOD* which is recommended for more complex and intricate landscapes and is mentioned in the

EHS Guidelines as an example of creating diffusion models.

* AERMOD (AMS/EPA Regulatory MODel): Air concentration estimation model for SO2, ozone, etc.

recommended by EPA of USA. It is a general-purpose model capable of estimating air diffusion in land with

complex shapes, and diffusion in buildings or convective mixed layers.

b）Calculation conditions

We are compared two scenarios by emissions dispersion calculations.

Scenario 1: The scenario of “SC600MW (sub critical)” which condition becomes more severe than USC.

Scenario 2: The scenario of “USC1000MW (ultra super critical)” which condition becomes more favorable than

SC.

4-14

Table 4-11 Input Parameters

Scenario1 Parameters below were entered for each of the 600 MW units

Environmental parameter entered Input value

QCVN 22:2009

capacity ≤ 1200MW Kp = 0.85 Kv =1.0

IFC standard

Stack height (m) 210

Number of stacks 1

Stack diameter (m) 7

Flue gas flow rate at stack outlet (m3/s) 897.78

Flue gas temperature at stack outlet ( ) 80

Concentration of PM10 in flue gas at the standard temperature (mg/Nm3)

50 170 50

Flow rate of PM10 in flue gas (g/s) 37.89

Concentration of PM2.5 in flue gas at the standard temperature (mg/Nm3)

35

Flow rate of PM2.5 in flue gas (g/s) 26.53

Concentration of SO2 in flue gas at the standard temperature (mg/Nm3)

78 425 200 - 850

Flow rate of SO2 in flue gas (g/s) 58.83

Concentration of NOx in flue gas at the standard temperature (mg/Nm3)

150 552.5 510

Flow rate of NOx in emissions (g/s) 113.68


Scenario2 Parameters below were entered for each of the 10,000 MW units

Environmental parameter entered Input value

QCVN 22:2009

capacity ≤ 1200MW Kp = 0.85 Kv =1.0

IFC standard

Stack height (m) 210

Number of stacks 1

Stack diameter (m) 7

Flue gas flow rate at stack outlet (m3/s) 1281.67

Flue gas temperature at stack outlet ( ) 80

Concentration of PM10 in flue gas at the standard temperature (mg/Nm3)

50 170 50

Flow rate of PM10 in flue gas (g/s) 54.1

Concentration of PM2.5 in flue gas at the standard temperature (mg/Nm3)

35

Flow rate of PM2.5 in flue gas (g/s) 37.87

Concentration of SO2 in flue gas at the standard temperature (mg/Nm3)

78 425 200 - 850

Flow rate of SO2 in flue gas (g/s) 87.98

Concentration of NOx in flue gas at the standard temperature (mg/Nm3)

240 552.5 510

Flow rate of NOx in emissions (g/s) 259.67


4-15

c) Calculation results

Table 4-12 Results of air pollutant diffusion simulation

Scenario1

Paramet

er Time

Max concentration at ground Vietnam

standard

(µg/m3)

IFC Guideline

(µg/m3) Concentration

(µg/m3)

Distance from BL1 stack

(km) - Direction

All 3 power plants in operation: 6 units (6 x 600MW)

SO2

1h 181.5 3.2 - Southwest 350 -

24h 13.7 1.8 - East 125 50

Annual 2.2 2.7 - West 50 20

NO2

1h 203 6.4 - Southwest 200 200

24h 16.7 4.5 - Northwest 100 -

Annual 2.0 3.3 - Northwest 40 40

PM10

1h 116.9 3.2 - Southwest - -

24h 8.8 1.8 - East 150 50

Annual 1.4 2.7 - West 50 20

PM2.5

1h 81.9 3.2 - Southwest - -

24h 6.2 1.8 - East 50 50

Annual 1.0 2.7 - West 25 20

Bac Lieu PCBac Lieu City

Max Conc

Ganh Hao

Maximum concentration of SO2 – 1h – 3 x 2 x 600MW (Scenario 1)


4-16

Scenario2

Paramet

er Time

Max concentration at ground Vietnam

standard

(µg/m3)

IFC Guideline

(µg/m3) Concentration

(µg/m3)

Distance from BL1 stack

(km) - Direction

All 3 power plants in operation: 3 units (3 x 1000MW)

SO2

1h 104.8 3.2 - Southwest 350 -

24h 8.2 3.0 - Northwest 125 50

Annual 1.2 3.1 - West 50 20

NO2

1h 195.8 5.6 - Southwest 200 200

24h 16.9 5.4 - Northwest 100 -

Annual 1.9 3.3 - Northwest 40 40

PM10

1h 67.5 3.2 - Southwest - -

24h 5.3 3.0 - Northwest 150 50

Annual 0.8 3.1 - West 50 20

PM2.5

1h 47.3 3.2 - Southwest - -

24h 3.7 3.0 - Northwest 50 50

Annual 0.6 3.1 - West 25 20

Bac Lieu PCBac Lieu City

Ganh Hao

Maximum concentration of SO2 – 1h – 3 x 1000MW (Scenario 3)


4-17

c-1) Analysis

・ In the scenario1 (SC600MW × 6 units) , maximum landing point concentration of SO2, PM10,PM2.5

are lower than the prescribed standards of both Vietnam regulation and IFC guidelines. As for maximum

landing point concentration of NO2, it is same level around the prescribed standard.

・ In the scenario2 (USC1000MW × 3 units) , maximum landing point concentration of SO2, NO2,

PM10, PM2.5 are lower than the prescribed standards of both Vietnam regulation and IFC guidelines.

・ Maximum landing point concentration of each parameter of Scenario 2 is more suppressed than

scenario1. This is caused of the effect of the efficiency between SC and USC, and the difference of

output of 3,600MW → 3,000MW.

・ It will be possible to further reduce environmental load since the installation of high-efficiency flue-gas

denitration equipment will be considered during the detailed design stage.

4-18

3）Environmental and mitigation measures for the eco-systems

Considering the reduction of the area of mangrove forests to be cut down

a） Situation with the mangrove outside of the levee (sea side)

・ The mangrove forests outside of the levee are positioned as forests for windbreak and sand

prevention. They are natural forests and the people’s committee has entrusted their care to the

residents. This area is not zoned for development and cannot be subdivided; thus the residents catch

shrimp and fish using a net instead of establishing aqua-farms.

・ Overall, the mangroves grow densely, except for some sections where mangroves are dying. Toward

the coast, the mangroves tend to be younger and shorter. This might be due to the mangrove

forestation that is done to create protective forests against coastal erosion caused by waves.


b）Situation with the mangroves inside the levees (land side)

・ The area inside the levees is not completely blocked out and sea water enters inside the levees.

However, the levees prevent sea water from coming in and out with tides to some extent, which

causes more noticeable deterioration of mangrove forests. The forests are sparse compared to the sea

side and leaves are lighter in color.

・ In the northern and western side of the planned construction side, the area has been developed for

aqua-faming of shrimp and weatherfish, etc. In the practice of aqua-farming, a large amount of

disinfectant is used, and it might have caused the land to become infertile and the mangrove forests

to deteriorate.

・ In the southeastern inland area, some lush mangrove forests have been observed.


4-19


c）Environmental considerations based on the mangrove growth situation

・ The study confirmed that the mangrove growth situation is different between inside the levees (land

side) and outside (sea side) and the mangroves outside have mainly stayed close to their natural state.

Although mangroves are dotted about on the land side inside the levees, the area has been

devastated due to development as stated above. Thus, the measures that bring sufficient

environmental benefits will be to move the construction area to inside the levees from the usual

coastal area and to leave the mangroves outside the levees as much as possible.

・ Since mangroves act as a windbreaker, they could help prevent coal dust and ash from spreading

from the plant area and mitigate the impact of rust formed on machines and equipment due to

deposited salt from sea water.

・ The move of the site to inland necessitates the extension of the length of land preparation and

construction such as channels for water intake and discharge, coal conveyer, etc., raising concern for

cost increase.

Figure 4-10 Mangroves area


Levee

Aquaculture pond

Mangrove forest

Mangrove forest

(less dense)

4-20

c-1) Difference in the mangrove forest area to be cleared based on the site location (rough estimation)

Figure 4-11 The case of 30,000 DWT

Located right on the sea side Moved toward inland

Area to clear mangrove 288ha 36ha

Area of avoided mangrove clearing Base 252ha (88% reduction)


① Coastal mangrove area: (2700m＋500m)×(1000m＋800m)÷2 ≒ 288ha (roughly estimated as trapezoid area)

(including river levee area)

② Area of coastal mangrove forests whose development cannot be avoided: total of 36ha a) Discharge channel 950m × （80m ＋（10m×2））= 95,000 ㎡ b) Intake channel – west side 900m ×（30m＋（10m×2））= 45,000 m2

east side 800m ×（70m＋（10m×2））= 72,000 m2

c) Coal, etc. transportation facility 800m × (25m+(10m×2)) = 36,000 m2 d) Levee – west side 800m ×（50m＋(10m×2)）=56,000 m2

east side 800m ×（50m＋（10m×2））=56,000 m2

500m

2700m

1000m

800m

Mangrove forest

4-21

c-2) Difference in mangrove forest area to be cleared based on the site location (rough estimation)

Figure 4-12 The case of 10,000 DWT

Located right on the sea side Moved towards inland

Area to clear mangrove 236ha 20ha

Area of avoided mangrove clearing Base 216ha (92% reduction)


① Coastal mangrove area: (2200m＋500m)×(1000m＋800m)÷2 ≒ 236ha (roughly estimated as trapezoid area) (including river levee area)

② Area of coastal mangrove forest where development is essential: total of 20ha

a) Discharge channel: 800m ×（90m ＋（10m×2））=88,000 m2 (outlet area)

b) Levee – west side 800m ×（50m＋(10m×2)）=56,000 m2

east side 800m ×（50m＋（10m×2））=56,000 m2

500m

2700m

1000m

800m

Mangrove forest

4-22

(3) Environmental and Social Impact of the Project Implementation

1）JICA Guidelines

The Japan International Cooperation Agency (JICA) established and published new JICA Guidelines for

Environmental and Social Considerations (hereinafter “New Environmental Guidelines”) dated April 1, 2010.

These guidelines aim to list the responsibilities and procedures for environmental and social considerations

performed by JICA as well as the requirements for the host country, thereby encouraging the host countries, etc.

to make appropriate environmental and social considerations while ensuring the appropriate implementation of

support and confirmation by JICA for environmental and social considerations. The guidelines also stipulate

that “the host country, etc. are required to fill the screening format, and the information in the format will be

refereed to for the categorization,” and “to use the corresponding environmental checklists for each sector as

appropriate when conducting the environmental review.”

2）Confirmation result regarding environmental considerations for the Project

Regarding the environmental impacts from the construction of Bac Lieu power complex, the JICA

environmental checklist (2. Thermal power) was used to list items of environmental and social considerations

that will be needed in the later stage. The confirmation result of the environmental checklist in Table 4-7 is the

result at this point in time. Further confirmation will be necessary after the environmental impact assessment

(EIA) is conducted during the next stage.

Table 4-13 JICA Environmental checklist (“2. Thermal power”)

cate

gory

Item Main matter to be checked

Impact outline

Impact ●: grave ○: small ×: none

Measures to be taken and examinations required

1.P

erm

its a

nd a

ppro

vals

, exp

lana

tions

(1) EIA and environmental permits

(a) Is EIA report prepared?

－－ EIA report is not prepared since it is needed during the detailed F/S stage. No detailed F/S has been done in Vietnam for USC thermal power.

(b) Is EIA report approved by the government?

－－ Not approved yet. After conducting the EIA above, the approval from the provincial government is obtained.

(c) Does the EIA report approval come with conditions? If so, will the conditions be met?

－－ When decision to approve the EIA report, environmental requirements and provisions the owner must follow during the construction and operation of the proposed project will be listed.

(d) Aside of those above, are other necessary environmental permits obtained from local authorities in charge?

－－ Environmental requirements and permits will be listed in the EIA report approval decision document by the authorities in charge (MONRE, etc.). Permits for water and land use, hazardous waste generation, etc. will be needed in the next stage.

(2) Explanations to the

(a) Are the project contents and impacts explained and

－－ EIA must be done according to Vietnamese laws and regulations. During EIA implementation, explanations must be given

4-23

local stakeholders

understood appropriately by the local stakeholders including information disclosure?

to the local residents via Provincial People’s Committee of Bac Lieu and opinions of the local residents obtained as appropriate.

(b) Are the comments from the residents reflected in the project content?

－－ It is necessary to properly address the comments raised by the local residents during the EIA implementation.

(3) Examination of alternatives

(a) Are the multiple alternatives to the proposed project considered (by including environmental and social matters when considering)?

・Installed capacity ・Environmental considerations

－ ●

・Advantages and disadvantages are compared between 2 units with 600MW each and one unit with 1,000MW. ・A proposal was made to move the plant site from the coastal area where mangroves grow densely to inland to minimize the clearing of natural mangrove forests. Provincial People’s Committee of Bac Lieu has received the proposal favorably.

2. A

nti-

pollu

tion

mea

sure

s (1) Air quality

(a) Do pollutants such as SOx, NOx, PM, etc. emitted during PP operation meet the emission standard of the country? Will there be areas where the environmental standards of the country are not met?

・SOx, NOx and PM are emitted due to coal-fired power ・Cumulative impact with that from the existing facilities

● ●

・The Vietnamese emissions standard for new facilities and those of EHS Guidelines of IFC/WB must be met by installing flue gas desulfurization and denitration equipment, and ESP. ・The quantitative study, estimation and assessment will be done in EIA, including cumulative impacts.

(b) For Coal-fired PP, could scattered ash dust from coal storage yards and transportation facilities or dust from coal ash disposal yards cause air pollution? Will anti-pollution measures be taken?

・Coal dust scattering ・Coal ash scattering

○ ○

Coal dust from the coal storage yard and transport facilities or dust from the coal ash disposal yard could cause air pollutions. ・Anti-pollution measures and facilities such as adopting enclosed structure for coal transport facilities and installing dust cover, etc. will be planned during detailed design stage. ・Water sprinkling and windshield nets at the coal storage yard to prevent scattering ・Scatter prevention by transporting ash to the disposal yard using the slurry method. ・Anti-scatter measure of planting trees around the ash disposal yard

(2) Water quality

(a) Does effluent from PP including thermal effluent meet the standards of the country? Are there areas where the environmental standards of the country are not met or areas of waters with high temperature?

・Discharge of thermal effluent ・Waste water from plants ・Cumulative impact with that from the existing facilities

● ● ×

・Plan so that Vietnamese national technology standard for industrial effluent QCVN40:2011/BTNMT are met. ・Plan for the installation of portable toilets and waste collection by specialized company during the construction, etc. ・Plan to install equipment in proper locations to continuously measure the cooling water temperature when warm. ・Compliance with the nation’s environmental standard for effluent will be confirmed during EIA report preparation.

(b) For coal-fired PP, does leachate from the coal storage yard and ash disposal site meet the national discharge

・Leachate from coal storage yard ・Leachate from coal ash

● ●

・Plan so that Vietnamese national technology standard for industrial effluent QCVN40:2011/BTNMT are met. ・For leachate, an impervious layer of polyethylene or asphalt concrete is planned

4-24

standards? disposal sites for the bottom of the disposal sites.

(c) Will measures be taken to prevent effluent from polluting surface and ground water, soil, sea, etc.?

Same with (a) and (b) above

Same with (a) and (b) above

・Plan to discharge effluent from PP after proper treatment and based on the Vietnamese national technology standards QCVN14:2008/BTNMT for human sewage and QCVN40:2011/BTNMT for industrial effluent

(3) Waste (a) Will waste (oil and chemical waste), coal ash generated from operation or gypsum from flue gas desulfurization be treated and disposed properly based on the national regulations?

・Coal ash generated ・Gypsum from desulfuriza tion equipment ・Waste oil and sludge generated

● ○ ○

・Consider coal ash and gypsum use ・Plan so that waste is treated and disposed to meet Vietnamese standards TCVN 6705:2000 for classification of non-hazardous waste and solid waste, TCVN 6706:2000 for classification of hazardous waste and TCVN 6696:2000 for sanitary landfills. ・Plan for regular collection by specialized companies.

(4) Noise and vibration

(a) Do noise and vibration meet the standards of the country?

・Noise from machines ・Cumulative impact with that from the existing facilities

○ ×

・There are Vietnamese national technology standard for noise QCVN26:2010/BTNMT and those for vibration QCVN27:2010/BTNM. Vietnamese standard TCVN3985:1999 stipulates the allowable noise level at workplaces. Plans will be drawn to meet these standards.

(5) Subsidence

(a) If a large amount of ground water is to be extracted, could subsidence occur?

× × ・Planned to supply water for entire Bac Lieu 1&2&3 coal-fired PP from Quan Lo Canal, located 12-14km away from the site. Planned to supplement water during water quality deterioration or cooling water shortage by installing seawater desalination units. No groundwater is extracted; thus no concern for subsidence.

(6) Odor (a) Are there sources of odor? Will measures for odor be implemented?

Residual ammonia generated

○ Ammonia might be used for water supply treatment and become an odor source; however, ammonia leak will be prevented with proper maintenance and management and in the case of a leak, its diffusion will be prevented with water sprinkler, etc.

3. N

atur

al

it(1)

Protected areas

(a) Is the site in a protected area designated by the country’s laws or international treaties? Will the project impact the protected area?

Power generation facility installation

× ・The area around the Project site is not part of any protected areas designated by the country’s laws or international treaties. The area might be newly designated as national park, etc.; thus it will be confirmed again during the EIA report preparation.

(2) Ecosystem and biofacies

(a) Does the site contain primary forests, tropical natural forests, or ecologically important habitats (coral reefs, mangrove wetland, tidal flats, etc.)?


●

・No special species listed in the Vietnamese Redbook was found during the floristic survey at the proposed Project site for Bac Lieu PP. Reconfirmation is needed during EIA. If such species exist, appropriate protection and mitigation measures must be taken and protection result monitored and evaluated. ・Mangroves grow along the coast near the Project site (shrimp farms near the Project site was created by clearing mangrove forest).

(b) Does the site contain habitats of

Power generation

× ・According to the report by the local consultant, no special species listed in the

4-25

precious species designated for protection by the country’s laws or international treaties?

facility installation

Vietnamese Redbook was found during the floristic survey at the proposed Project site for Bac Lieu PP.

(c) If significant impact is feared for the ecosystems, will measures be taken to mitigate impact on the ecosystems?


●

・A mangrove wetland exists along the coast near the Project site. A proposal was made to move the site location toward inland in order to minimize the environmental impact and reduce the area of mangroves to be cleared.

(d) Will (surface or ground) water intake by the project impact aquatic environment such as of rivers? Will measures be taken to mitigate impacts on aquatic organisms, etc.?

Intake of cooling water and water for plant use

○ ・The thermal effluent discharge, intake of a large amount of cooling water and leachate would certainly impact ecosystems in the surrounding bodies of water. The level of impacts must be studied during the EIA preparation stage.

(e) Will the thermal effluent discharge, intake of a large amount of cooling water and leachate impact ecosystems in the surrounding bodies of water?

・Thermal effluent discharge ・Plant effluent discharge

● ○

・Effluent must meet Vietnamese standards for waste water and the effluent standards of IFC’s EHS Guidelines, with the use of waste water treatment equipment. ・Quantitative study, estimation and evaluation must be done in EIA including that for cumulative impacts.

4. S

ocia

l env

iron

men

t (1) Resettlement

(a) Will the implementation of the Project cause involuntary resettlement of residents? If so, will an effort be made to minimize the impact of resettlement?

Land acquisition

○

The implementation of the Project will cause involuntary resettlement of residents. However, the area around the Project site is used mainly as shrimp farms and salt fields. The area’s small population offers favorable conditions for land acquisition and resettlement of the residents. The degree of the impact must be studied during the EIA preparation stage.

(b) Will reasonable explanations be given to the residents on compensation and reconstructing livelihood before resettlement?

Land acquisition

－ Since the Provincial People’s Committee of Bac Lieu supports the Project for its potential contribution for regional development, the assistance from the committee can be expected during negotiations for compensation and land acquisition. Plans will be made to offer appropriate explanation before resettlement.

(c) Will a study be done for resident resettlement and a resettlement plan be drawn that include compensation at the reacquisition price and recovering livelihood after resettlement?

Land acquisition

－ The resettlement plan is usually drawn during the EIA preparation stage.

(d) Will the compensation be paid before resettlement?

Land acquisition

－ It must be considered during the EIA preparation stage.

(e) Are the compensation policies

Land acquisition

－ Plans will be made to prepare compensation policies in writing.

4-26

documented?

(f) Does the plan give special considerations for the socially vulnerable among those resettled, such as women, children, elderly, the poor, ethnic minorities and indigenous peoples?

Land acquisition

－ The plan will be drawn to offer special considerations for the socially vulnerable.

(g) Will the consent from the residents be obtained before resettlement?

Land acquisition

－ The plan will be made to obtain residents’ consent before resettlement.

(h) Will there be a system to facilitate resident resettlement appropriately? Will there be sufficient execution ability and budgetary measures?

Land acquisition

－ The plan will be drawn to create a system to facilitate resident resettlement appropriately and to ensure sufficient execution ability and budgetary measures.

(i) Will monitoring for the impact from resettlement be planned?

Land acquisition

－・There is no plan to monitor the impacts from resettlement at this time.

(j) Is there a system to handle grievances?

Land acquisition

－・A system will be created to handle grievances from the residents properly.

(2) Living and livelihood

(a) Will the Project cause negative impact on the life of the residents? Will considerations be given for mitigation if necessary?

Increase in economic activities due to inflow of workers, etc.

○

・The revitalization and promotion of the area will be done through the employment of local residents and use of local companies.

(b) Have sufficient social infrastructures needed for the implementation of the Project (hospitals, schools, roads, etc.) been developed? If not, are there development plans?

Development of social infrastructure due to inflow of workers, etc.

○

・No big hospital nearby. There is a clinic in downtown Bac Lieu, which is one hour away by car. ・At this point, there is no town (with schools or hospitals) or reservoir developed for the employees.

(c) Will the traffic from oversized vehicles used for the Project impact the traffic on highway in the area? Will measures be taken to mitigate the impact on the traffic as necessary?

Increased traffic due to construction vehicles

○

・The construction plans will be announced and measures to prevent car accidents will be implemented.

(d) Will the inflow of workers due to the Project activities bring disease risks (including infectious diseases such as HIV)?

Increased traffic due to construction vehicles

○

The construction plans will be announced and measures to prevent car accidents will be implemented.

4-27

Will considerations be given for public health as necessary?

(e) Will surface and ground water intake by the Project and thermal effluent discharge impact existing uses of water and bodies of water (especially fishery)?

・Intake of water for cooling and for plant use ・Thermal effluent discharge ・Plant effluent discharge

○ ・Reexamine the amount of necessary water intake (reduce the cooling water amount and increase water for desulfurization equipment) ・Confirm the fishery situation

(3) Cultural heritage

(a) Could the Project harm heritage or historical sites of archaeological, historical, cultural or religious importance? Are measures under Vietnamese laws considered?


× The Project will be an addition to the existing PP, and there is no heritage or historical sites of archaeological, historical, cultural or religious importance on the site.

(4) Landscape

(a) If there is landscape requiring special care, would it be negatively affected? If so, will necessary measure be taken?


× There are farms and towns around the site but no tourist spot.

(5) Ethnic minorities and indigenous peoples

(a) Is care taken to mitigate impacts on the cultures and lifestyles of the ethnic minorities and indigenous peoples in Vietnam?

Land acquisition

× Most of the residents in the area are Kinh (Viet) people and no ethnic minorities live in and around the Project site.

(b) Are the rights of the ethnic minorities and indigenous peoples for land and resources respected?

Same as above

Same as above

Same as above

(6) Work environment (including occupational safety)

(a) Will the Vietnamese laws on work environment be complied in the Project?

Employment of workers

○

Plans will be made to comply with Vietnamese law below for conditions of employment: ・Labor laws (promulgated as of Jun. 23, 1994 by the national assembly) ・Decision 2733/2002/BYT (promulgated as of Oct. 10, 2002 by Ministry of Health) ・TCVN3985:1999 for permissible noise level in workplaces

(b) Will there be facilities to protect people involved in the Project, e.g. safety equipment for industrial accident prevention and hazardous substance management?

Employment of workers

○

Fire protection and other safety facilities will be checked.

(c) Will there be safety Employment ○ Plans will be made to implement trainings

4-28

and sanitation plans, safety training (incl. road safety and public health) and other measures addressing people involved in the Project?

of workers and other measures for the safety of the people involved in the Project.

(d) Will there be measures to ensure that security officers for the Project will not violate the safety of the people involved in the Project and local residents?

Employment of security officers

○

Plans will be made to implement trainings and other measures for the people involved in the Project.

5. O

ther

(1) Impact during construction

(a) Will there be mitigation measures for the pollution during the construction (e.g. noise, vibration, turbid water, dust, exhaust gas and waste)?

・Dust ・Noise ・Turbid water・Waste

○

Since there are residential areas nearby, mitigation measures will be examined and prepared as needed during EIA, such as: ・Keep noisy work away from the boundary・Limit work during nighttime ・Use covers on vehicles transporting soil, sand, etc. ・Sprinkle water on construction area and roads used ・Improve vehicles transporting materials ・Install drainage facilities suitable for the landform and capacity, etc.

(b) Will the work negatively impact the natural environment (ecosystems)? Will there be mitigation measures?

Land preparation

○

・Mitigation measures will be planned as needed during the EIA report preparation, such as the reduction of the area of mangrove cleared and measures to control effluent temperature.

(c) Will the civil work impact the social environment negatively? Will there be mitigation measures?

・More economic activity from worker inflow ・More traffic due to construction vehicles

○

・The Project might cause a conflict between construction workers and local residents. Mitigation measures will be planned as needed during the EIA report preparation, such as employing locals, regional revitalization through using local companies, announcing construction schedules and measures to prevent traffic accidents.

(2) Accident prevention measures

(a) For coal-fired PP, is there plan to prevent spontaneous combustions at coal storage yard (water sprinkler, etc.)?

Fire at coal storage yard

○

The installation of sprinklers, etc. will be planned to prevent spontaneous combustions in the coal storage yard.

(3) Monitoring

(a) Will monitoring by the Project implementing entity be planned and conducted for items above that might cause impacts?

－－ Based on the monitoring plan drawn during the EIA implementation, exhaust gas, waste water, air and water quality and noise will be measured regularly.

(b) How are the items, methods and frequencies decided in the plan?

－－ Based on the environmental monitoring plan drawn during the EIA implementation, appropriate items, methods and frequencies are decided through discussions with

4-29

regulatory agencies.

(c) Will the system of monitoring by the Project implementing entity (organization, staff, equipment, budgets, etc. and continuity) be established?

－－ Based on the environmental monitoring plan drawn during the EIA implementation, the monitoring by the Project implementing entity will be carried out.

(d) Are the method and frequency of reports by Project implementing entity to competent agencies specified?

－－ Based on the environmental monitoring plan drawn during the EIA implementation, the monitoring by the Project implementing entity will be planned and implemented.

6. N

otes

Reference to other environmental checklists

(a) If required, applicable check items in the checklist for transmission, distribution and substation must be checked and evaluated (if the construction of such facilities is required)

－－ An outdoor switch yard corresponds to transmission, distribution and substation facility. Applicable check items in the checklist for transmission, distribution and substation will be checked and evaluated during the EIA report preparation.

(b) If required, applicable check items in the checklist for port and harbor must be checked and evaluated (if the construction of such facilities is required)

－－ As the port and harbor are part of the project, applicable check items in the checklist for port and harbor will be checked and evaluated during the EIA report preparation.

Notes for using environmental checklist

(a) If needed, cross-border or global-level environmental impact must be confirmed (e.g. cross-border waste disposal, acid rain, ozone layer depletion, global warming factors)

－－ With the use of high-efficiency USC boilers, the CO2 emissions per generated output will be reduced compared to other existing PP.


4-30

(4) Outline of Vietnamese Laws on Environmental and Social

Considerations and Compliance Measures

1) Environmental administration of Vietnam

Under the Law on Environmental Protection, the Ministry of Natural Resources and Environment of Vietnam

(MONRE) is expected to perform administrative duties for environmental management by cooperating with

related ministries and agencies. To strengthen the coordinative ability, the organizational change was made

within MONRE in September 2008, and Vietnamese Environment Administration (VEA) was established. This

agency has environmental management-related functions from creating policies and strategies to administrative

execution such as EIA and verification.

In a rural province, a branch office of VEA has been established within the Department of Natural Resources

and Environment (DONRE) of the province after the organizational change of MONRE. As a Vietnamese

administrative agency, DONRE is positioned to be under the control of the people’s committee of the

province, and is supervised by people’s committee of the province in terms of local administration. The local

administration in Vietnam is done by the people’s committee of respective province or city under direct

control of the central government, and people’s committees have a great role to play when implementing

measures against environmental pollution.

2）Outline of Vietnamese environmental laws

This section lists environmental laws, regulations, standards, ministry orders, etc. that are relevant to coal-fired

power plant construction projects.

a) Laws related to environmental assessment

a‐1 Law on Environmental Protection

The Law on Environmental Protection passed the National Assembly of the Socialist Republic of Vietnam on

November 29, 2005, promulgated on December 12, 2005 in the President’s Ordinance 29/2005/L/CTN and

enforced as of July 1, 2006. The revised Law on Environmental Protection (55/2014/QH13) was approved on

June 23, 2014 by the national assembly to come to effect on January 1, 2015. Relevant to the Project in the

revised Law on Environmental Protection are Chapter 3 clause 2 (Strategic Environmental Assessment, SEA)

(sections 13-17) and clause 3 (EIA) (sections 18-28).

a‐2 Decree 80/2006/ND-CP

Issued on August 9, 2006, it sets forth the details and guidelines for the implementation of some sections of

the Law on Environmental Protection.


Issued on August 9, 2006, it sets forth administrative penal provisions in the field of environmental protection.

4-31


Issued in February 2008, it revises and adds to Decree 80/2006/ND-CP.

a‐5 Circular 08/2006/TT-BTNMT

Issued on September 8, 2006, it sets forth the guidance for SEA, EIA and environmental protection measures.

a‐6 Circular 05/2008/TT-BTNMT

Issued on December 8, 2008, it gives detailed guidelines for implementing many items for SEA, EIA and

environmental protection measures which are stipulated in the Law on Environmental Protection and Decree

21/2008/ND-CP.


Issued on April, 18, 2011, it addresses EIA, strategic assessment, etc.


Issued on November 14, 2013, it addresses sanctions for administrative non-compliances in the field of

environmental protection.

a‐9 Circular 09/2014/TT-BNNPTNT

Issued on March 26, 2014, it addresses strategic environmental assessment and the regulation on some contents

of EIA.


Issued on April 29, 2014, it revises parts of the decrees on strategic environmental assessment.

a‐11 Decision 1216/QD-TTg

Issued on September 5, 2014, it sets forth strategies up to 2020 and visions up to 2030 regarding environmental

protection.

a‐12 Decision 1030/QD-TTg

Issued on July 20, 2009, it describes the development of Vietnam’s environment industries up to 2015 and

visions up to 2025.

b) Environment-related air quality standards relevant to thermal power generation projects

b‐1 Standard for emissions from thermal PP: national technological standard QCVN 22: 2009/BTNMT

The maximum permissible concentration level of pollutants contained in the flue gas from thermal power plant

Cmax is calculated using the formula below:

Cmax = C x Kp x Kv

C is given as shown in Table4-14 depending on the types of pollutants and fuels.

4-32

Table 4-14 Emissions reference values for pollutants in flue gas (QCVN 22:2009/BTNMT)

No Parameter

Concentration (mg/Nm3)

A (existing plant) B (new plant)

Coal Oil Gas

1 PM 400 200 150 50

2 NOx

(as NO2) 1,000

- 650

(coal property : volatile

matter content ＞10%)

- 1,000

(coal property : volatile

matter content≦10%)

600 250

3 SO2 1,500 500 500 300

Kp is the output coefficient and given as shown in Table 4-15 based on the generated output for the area:

Table 4-15 Value of the output coefficient Kp (QCVN 22:2009/BTNMT)

Generating capacity (MW) Kp

P ≤ 300 1

300 < P ≤ 1,200 0.85

P ≥ 1,200 0.7

Kv is the regional factor and given as shown in Table 4-16 depending on the region:

Table 4-16 Value of regional factor Kv (QCVN 22:2009/BTNMT)

Region and area category Kv

Grade 1

If the distance between thermal PP to the boundary to areas

below is less than 5km: special type city and type I city area,

forest for special use, designated natural, historical and cultural

heritage

0.6

Grade 2

If the distance between thermal PP to the boundary to special

type city and type I city area is 5km or more, or distance from

such PP to the boundary of type II, III and IV city area is less

than 5km

0.8

Grade 3

The distance from industrial complex or thermal PP to the

boundary of type II, III and IV area is 5km or more, or distance

from thermal PP to the boundary of type V city is less than 5km

1.0

Grade 4 Farming village 1.2

Grade 5 Farming village in mountains 1.4

4-33

The city categories are shown in Table 4-17:

Table 4-17 City categories (No.42/2009/ND-CP)

Category I

Population density: 12,000/km2 or more

Non-farm workers: 85% or more

(city with capital-level hub functions )

Category II Population density: 8,000/km2 or more

Non-farm workers:80% or more

Category III Population density: 6,000/km2 or more


Category IV Population density: 4,000/km2 or more


Category V Population density: 2,000/km2 or more


b‐2 Air quality standard: national technological standard QCVN 05: 2009/BTNMT

The air quality standard of Vietnam is shown in Table 4-18:

Table 4-18 Maximum permissible concentration of main pollutants in the air (QCVN 05:2009/BTNMT)

(Unit: μg/m3)

No Parameter 1-hr average 3-hr average 8-hr average Yearly

average

1 SO2 350 - 125 50

2 CO 30,000 10,000 5,000 -

3 NOx 200 - 100 40

4 O3 180 120 80 -

5 Suspended particulate matter (TSP) 300 - 200 140

6 Particulate matter ≤ 10 μm (PM10) - - 150 50

7 Pb - - 1.5 0.5

Note: (-): no stipulation

c) Environment-related standards for water quality relevant to thermal power projects

c‐1 Discharge standard for industrial effluent: national technological standard QCVN 40: 2011/BTNMT

There is no Vietnamese discharge standard applicable only to thermal power generation, and the common

national technological standard for industrial effluent is used to regulate thermal power. The same standard

is applied to thermal effluent and wastewater from the coal storage yards and disposal site.

The maximum permissible level Cmax for pollutants in industrial effluent is calculated as below (Cmax=C is

used for temperature, pH, odor, color, coliform count, gross alpha radioactivity and gross beta radioactivity).

Cmax = C x Kq x Kf

4-34

C is the reference value for pollutants in industrial effluent and defined as shown in Table 4-19

Table 4-19 Reference value C for pollutants in industrial effluent (QCVN 40: 2011/BTNMT)

No Parameter and substance name Unit Reference value (C)

A B

1 Temperature 40 40

2 Color Pt/Co 50 150

3 pH - 6 to 9 5.5 to 9

4 BOD5 (20 ) mg/l 30 50

5 COD mg/l 75 150

6 Suspended solids mg/l 50 100

7 Arsenic mg/l 0.05 0.1

8 Mercury mg/l 0.005 0.01

9 Lead mg/l 0.1 0.5

10 Cadmium mg/l 0.05 0.1

11 Chromium (VI) mg/l 0.05 0.1

12 Chromium (III) mg/l 0.2 1

13 Copper mg/l 2 2

14 Zinc mg/l 3 3

15 Nickel mg/l 0.2 0.5

16 Manganese mg/l 0.5 1

17 Iron mg/l 1 5

18 Total cyanide mg/l 0.07 0.1

19 Total phenol mg/l 0.1 0.5

20 Total mineral fats and oils mg/l 5 10

21 Sulfide mg/l 0.2 0.5

22 Fluoride mg/l 5 10

23 Ammonium (as N) mg/l 5 10

24 Total nitrogen mg/l 20 40

25 Total phosphorus (as P) mg/l 4 6

26 Chloride

(not applicable when discharging into saline water and brackish water)

mg/l 500 1,000

27 Excess Chlorine mg/l 1 2

28 Total organochlorine pesticides mg/l 0.05 0.1

29 Total organophosphorus pesticides mg/l 0.3 1

30 Total PCB mg/l 0.003 0.01

31 Coliform Bacteria/100ml 3,000 5,000

32 Gross α activity Bq/l 0.1 0.1

33 Gross β activity Bq/l 1.0 1.0

4-35

The column A is applied to cases where the body water to which industrial effluent is discharged is also a

source of water for daily life. The column B is used for cases where the body water to which industrial effluent

is discharged does not supply water for domestic use. If the body water to which industrial effluent is

discharged has salt water or brackish water, the reference values for chloride are not used.

Kq is defined as shown below depending on the body of water to which industrial effluent is discharged.

Table 4-20 Kq when industrial effluent is discharged to a river, spring, canal, channel, mountain stream or

ditch (QCVN 40: 2011/BTNMT)

Flow rate Q of the body of water to which

industrial effluent is discharged (m3/s) Kq

Q ≤ 50 0.9

50 ＜ Q ≤ 200 1

200 ＜ Q ≤ 500 1.1

Q ＞ 500 1.2

In Table 4-20, Q is an average flow rate for three months in the dry season with a smallest flow rate in three

consecutive years, calculated for rivers, springs, canals, channels, mountain streams or ditches to which

industrial effluent is discharged (based on the hydro-meteorological observatory data). If no flow rate data is

obtainable for such rivers, springs, canals, channels, mountain streams or ditches, Kq=0.9 is used. The

Department of Natural Resources and Environment in the area where the source of discharge is located assigns

an organization to determine the average flow rate for three months in the dry season which has the lowest flow

rate in a year. Such average flow rate serves as a basis for determining Kq.

Table 4-21 Kq when industrial effluent is discharged to a pond or lake (QCVN 40: 2011/BTNMT)

Volume V of the body of water to which

industrial effluent is discharged (m3) Kq

V ≤ 10 x 106 0.6

10 x 106 ＜ V ≤ 100 x 106 0.8

V ＞ 100 x 106 1.0

In Table 4-21, V is an average volume for three months during the dry season with the smallest volume of water

in three consecutive years, calculated for ponds and lakes to which industrial effluent is discharged (based on the

hydro-meteorological observatory data). If no water volume data is obtainable for such ponds and lakes, Kq=0.6 is

used. The Department of Natural Resources and Environment in the area where the source of discharge is located

assigns an organization to determine the thee-month average volume for the dry season which has the smallest

volume in a year. Such average volume serves as a basis for determining Kq.

If industrial effluent is discharged to coastal sea waters, Kq=1.3 is used if such waters are not used for the

4-36

protection of underwater life, water sports or other activities, and Kq=1.0 if the waters are used for the

protection of underwater life, water sports or other activities.

The velocity coefficient for effluent is defined as below:

Table 4-22 Velocity coefficient for effluent Kf (QCVN 40: 2011/BTNMT)

Velocity F（m3/24h） Kq

F ≤ 50 1.2

50 ＜ V ≤ 500 1.1

500 ＜ V ≤ 5,000 1.0

V ＞ 5,000 0.9

c‐2 Discharge standard for human sewage: national technological standard QCVN 14: 2008/BTNMT

For the human sewage from power plants, national technological standard for human sewage QCVN

14:2008/BTNMT is applied.

The maximum permissible level Cmax of pollutants in human sewage is calculated as below (Cmax=C is used

for temperature, pH and coliform count).

Cmax = C x K

C is the reference value for pollutants in human sewage and defined as shown in Table 4-23.

Table 4-23 Reference value C for pollutants in human sewage (QCVN 14:2008/BTNMT)

No Item Unit Reference value C

A B

1 pH - 5 – 9 5 – 9

2 BOD5 (20 ) mg/l 30 50

3 Total suspended solids

(TSS) mg/l 50 100

4 Dissolved solid mg/l 500 1,000

5 Sulfur (as H2S) mg/l 1.0 4.0

6 Ammonia (as N) mg/l 5 10

7 Nitrate NO3- (as N) mg/l 30 50

8 Animal and plant oil and

fat mg/l 10 20

9 Surface-activating

substance mg/l 5 10

10 Phosphate PO43- mg/l 6 10

11 Coliform MPN/100ml 3,000 5,000

4-37

K is defined as shown in Table 4-24 for service or public facilities, apartment and residential areas and

companies, based on their type, scale and area.

Table 4-24 Coefficient K for types of service or public facilities, and apartments (QCVN 14:2008/BTNMT)

Facility type Scale and area of the facility K

1. Hotel and rest house Hotel with 50 or more rooms and

three or more stars

１

Less than 50 rooms 1.2

2. Representative institutions, office, school

and research institution

10,000m2 or more 1.0

Less than 10,000m2 1.2

3. Department store and supermarket 5,000m2 or more 1.0


4. Market 1,500m2 or more 1.0


5. Restaurant and grocery store 500m2 or more 1.0

Less than 500m2 1.2

6. Production facility and army post 500 persons or more 1.0

Less than 500 persons 1.2

7. Apartment and residential area 50 households or more 1.0

Less than 50 households 1.2

c‐3 Water quality standard for surface water: national technological standard QCVN 08: 2008/BTNMT

The water quality standard for surface water is shown in Table 4-25.

Table 4-25 Water quality standard for surface water (QCVN 08:2008/BTNMT)

No. Item Unit Concentration

A1 A2 B1 B2

1 pH - 6-8.5 6-8.5 5.5-9 5.5-9

2 Dissolved oxygen mg/l ≥ 6 ≥ 5 ≥ 4 ≥ 2

3 Suspended matter mg/l 20 30 50 100

4 CODcr mg/l 10 15 30 50

5 BOD5（20 ） mg/l 4 6 15 25

6 Ammoniac nitrogen NH+4 mg/l 0.1 0.2 0.5 1

7 Chlorine (Cl-) mg/l 250 400 600 -

8 Fluorine (F-) mg/l 1 1.5 1.5 2

9 Nitrite-nitrogen NO-2 mg/l 0.01 0.02 0.04 0.05

10 Nitrate-nitrogen NO-3 mg/l 2 5 10 15

11 Phosphate PO43- mg/l 0.1 0.2 0.3 0.5

4-38

12 cyanogen compound CN- mg/l 0.005 0.01 0.02 0.02

13 Arsenic mg/l 0.01 0.02 0.05 0.1

14 Cadmium mg/l 0.005 0.005 0.01 0.01

15 Lead mg/l 0.02 0.02 0.05 0.05

16 Trivalent chromium Cr3+ mg/l 0.05 0.1 0.5 1

17 Hexavalent chromium Cr6+ mg/l 0.01 0.02 0.04 0.05

18 Copper mg/l 0.1 0.2 0.5 1

19 Zinc mg/l 0.5 1.0 1.5 2

20 Nickel Ni mg/l 0.1 0.1 0.1 0.1

21 Iron mg/l 0.5 1 1.5 2

22 Mercury mg/l 0.001 0.001 0.001 0.002

23 Surfactant mg/l 0.1 0.2 0.4 0.5

24 Oils and fats mg/l 0.01 0.02 0.1 0.3

25 Phenol mg/l 0.005 0.005 0.01 0.02

26

Agrichemicals

Aldrin + dieldrin

Endrin

BHC

DDT

Endosulfan

Lindane

Chlordane

Heptachlor

μg/l

μg/l

μg/l

μg/l

μg/l

μg/l

μg/l

μg/l

0.002

0.01

0.05

0.001

0.005

0.3

0.01

0.01

0.004

0.012

0.1

0.002

0.01

0.35

0.02

0.02

0.008

0.014

0.13

0.004

0.01

0.38

0.02

0.02

0.01

0.02

0.015

0.005

0.02

0.4

0.03

0.05

27

Organophosphate pesticide

Parathion

Malathion

μg/l

μg/l

0.1

0.1

0.2

0.32

0.4

0.32

0.5

0.4

28

Herbicide

2,4D

2,4,5T

Paraquat

μg/l

μg/l

μg/l

100

80

900

200

100

1,200

450

160

1,800

500

200

2,000

29 Gross radioactivity α Bq/l 0.1 0.1 0.1 0.1

30 Gross radioactivity β Bq/l 1.0 1.0 1.0 1.0

31 Bacillus coli MPN/100ml 20 50 100 200

32 Coliform count MPN/100ml 2,500 5,000 7,500 10,000

Note: To evaluate and manage water quality based on the purpose of water use, surface water is categorized as

below:

A1: domestic use and other uses described in A2, B1 and B2 below

A2: use as (1) domestic use after proper treatment, (2) protection of aquatic organisms, and (3) other uses

described in B1 and B2 below

4-39

B1: irrigation or other water use in which equivalent water quality is required, or other uses described in B2

B2: water transportation or other uses in which the requirement for water quality is low

c‐4 Water quality standard for ground water: national technological standard QCVN 09: 2008/BTNMT

The water quality standard for ground water is shown in Table 4-26.

Table 4-26 Water quality standard for ground water (QCVN 09: 2008/BTNMT)

No Parameter Unit Permissible value

1 pH - 5.5 -8.5

2 Hardness (as CaCO3) mg/l 500

3 Total solid mg/l 1,500

4 COD (KMnO4) mg/l 4

5 Amoni (as N) mg/l 0.1

6 Clorua (Cl-) mg/l 250

7 Florua (F-) mg/l 1.0

8 Nitrite (NO2-) (as N) mg/l 1.0

9 Nitrate (NO3-) (as N) mg/l 15

10 Sulfate (SO42-) mg/l 400

11 Cyanide (CN-) mg/l 0.01

12 Phenol mg/l 0.001

13 Arsenic (As) mg/l 0.05

14 Cadmium (Cd) mg/l 0.005

15 Lead (Pb) mg/l 0.01

16 Chrome (Cr3+) mg/l 0.05

17 Copper (Cu) mg/l 1.0

18 Zinc (Zn) mg/l 3.0

19 Manganese (Mn) mg/l 0.5

20 Mercury (Hg) mg/l 0.001

21 Iron (Fe) mg/l 5

22 Selen (Se) mg/l 0.01

23 Total radioactive activity α Bq/l 0.1

24 Total radioactive activity β Bq/l 1.0

25 E. Coli MPN/100ml ND

26 Coliform MPN/100ml 3

4-40

c-5) Water quality standard for offshore water: national technological standard: QCVN 10: 2008/BTNMT

The water quality standard for offshore water is shown in Table 4-27:

Table 4-27 Water quality standard for offshore water (QCVN 10: 2008/BTNMT)

No

. Parameter Unit

Permissible value

Aqua-farm and protected area for aquatic organisms

Marine resort or sport area

Other areas

1 Temperature 30 30 -

2 pH 6.5 – 8.5 6.5 – 8.5 6.5 – 8.5

3 Dissolved oxygen (DO) mg/l ≥ 5 ≥ 4 -

4 Total suspended solid (TSS) mg/l 50 50 -

5 COD(KMnO4) mg/l 3 4 -

6 Ammonia(NH4+) mg/l 0.1 0.5 0.5

7 Fluorine (F-) mg/l 1.5 1.5 1.5

8 Sulfide (S2-) mg/l 0.005 0.01 0.01

9 Cyanide (CN-) mg/l 0.005 0.005 0.01

10 Arsenic (As) mg/l 0.01 0.04 0.05

11 Cadmium (Cd) mg/l 0.005 0.005 0.005

12 Lead (Pb) mg/l 0.05 0.02 0.1

13 Chrome (Cr3+) mg/l 0.1 0.1 0.2

14 Chrome (Cr6+) mg/l 0.02 0.05 0.05

15 Copper (Cu) mg/l 0.03 0.5 1

16 Zinc (Zn) mg/l 0.05 1.0 2.0

17 Manganese (Mn) mg/l 0.1 0.1 0.1

18 Iron (Fe) mg/l 0.1 0.1 0.3

19 Mercury (Hg) mg/l 0.001 0.002 0.005

20 Oils and grease mg/l 0 0 -

21 Mineral oil mg/l Not detectable 0.1 0.2

22 Phenol (total) mg/l 0.001 0.001 0.002

23

Organochlorine insecticide

Aldrin+Dieldrin

Endrin

BHC

DDT

Endosulfan (Thiodan)

Lindane

Chlordane

Heptachlor

μg/l

μg/l

μg/l

μg/l

μg/l

μg/l

μg/l

μg/l

0.008

0.014

0.13

0.004

0.01

0.38

0.02

0.06

0.008

0.014

0.13

0.004

0.01

0.38

0.02

0.06

-

-

-

-

-

-

-

-

24 Organophosphate insecticide

4-41

Parathion

Malathion

μg/l

μg/l

0.4

0.32

0.4

0.32

-

-

25

Herbicide chemical

2,4D

2,4,5T

Paraquat

mg/l

mg/l

mg/l

0.45

0.16

1.80

0.45

0.16

1.80

-

-

-

26 Total radioactive activity α Bq/l 0.1 0.1 0.1

27 Total radioactive activity β Bq/l 1.0 1.0 1.0

28 Coliform MPN/100

ml 1,000 1,000 1,000

Note: En dash (-): No stipulation

d) Environmental standard for waste applicable to thermal power projects

d‐1 Laws related to solid waste management

The laws related to solid waste management include those listed below:

・Decree 59/2007/ND-CP dated April 9, 2007 was issued for solid waste management

・MONRE Circular 12/2006/TT-BTNMT dated December 26, 2006 was issued, offering guidance and

procedure for the application, registration and permission for hazardous waste management.

・Vietnamese standard TCVN 6696:2000－solid waste－common requirements for sanitary landfill and

environmental protection

・Vietnamese standard TCVN 6705:2000－non-hazardous solid waste－classification

・Vietnamese standard TCVN 6706:2000－hazardous waste－classification

・Vietnamese standard TCVN 6705:2009－non-hazardous solid waste－classification

・Vietnamese standard TCVN 6706:2009－hazardous waste－classification

・Vietnamese standard TCVN 6696:2009－solid waste－common requirements for sanitary landfill and

environmental protection

e) Environmental standards for noise applicable to thermal power projects

e‐1 Environmental standard for noise: national technological standard QCVN 26: 2010/BTNMT

Environmental standard for noise is shown in Table 4-28.

Table 4-28 Environmental standard for noise (dB(A))

No. Area 6-21 o’clock 21-6 o’clock

1 Special area 55 45

2 Normal area 70 55

Special area: medical facilities, libraries, nursery schools, schools, churches, assembly halls and temples

within their fences, as well as areas specially designated

Normal area: areas including apartments, single-family or adjacent homes, hotels, rest houses and

administrative institutions

4-42

e‐2 Standard for permissible noise levels at workplaces: TCVN 3985: 1999

The standard stipulates the maximum permissible noise levels for workspaces in factories and offices. It is

applied to control the noise level during the work process for the worker subjected to impacts from equipment

and machines. Generally, the permissible noise level must not exceed 85dBA during a work shift of 8 hours or

maximum of 115dBA. Throughout the period, values below must not be exceeded:

・For 4 hours, the permissible noise level is 90dBA.

・For 2 hours, the permissible noise level is 95dBA.

・For 1 hour, the permissible noise level is 100dBA.

・For 30 minutes, the permissible noise level is 105dBA.

・For 15 minutes, the permissible noise level is 110dBA.

・Maximum of 115dBA must not be exceeded.

・Except for working hours of a work day, the exposure to noise must be less than 80dBA.

f) Environmental standard for vibration applicable to thermal power projects

f‐1 Environmental standard for vibration level: national technological standard QCVN 27: 2010/BTNMT

The environmental standard for vibration level is shown below. The sources of vibration or impact during

construction work must not exceed the specified values in Table 4-29.

Table 4-29 Maximum permissible vibration acceleration during construction work

No. Area Hours Permissible vibration

acceleration, dB

1 Special area 6－18 o’clock 75

18－6 o’clock Base level

2 Normal area 6－21 o’clock 75

21－6 o’clock Base level

The sources of vibration or impacts during production, commercial or service activities must not exceed the

specified values in Table 4-30:

Table 4-30 Maximum permissible vibration acceleration during production, commercial or service activities

No. Area Hours and permissible vibration acceleration, dB

6 - 21 o’clock 21 - 6 o’clock

1 Special area 60 55

2 Normal area 70 60

The vibration acceleration levels specified in Tables 4-29 and 4-30 are:

・ Levels measured during stable vibration, or

・ Average of the maximum values measured at the time of cyclic or intermittent vibrations, or

・ Average of values obtained by taking ten measurements at five second intervals when vibration is not

4-43

steady but occurred haphazardly, or equivalent (L10).

The definitions of special area, normal area and base level are given below:

Special area: medical facilities, libraries, nursery schools, schools, churches, assembly halls and temples

within their fences, as well as areas specially designated

Normal area: areas including apartments, single-family or adjacent homes, hotels, rest houses and

administrative institutions

Base level (background level): vibration acceleration level measured in the area to be evaluated, during the

period when no production, commercial, service or construction activities are conducted.

3) Outline of environmental impact assessment (EIA) in Vietnam

The outline of the implementation of EIA under the Law on Environmental Protection (55/2014/QH13) of

Vietnam, enforced in January 2015, is given below:

a) Projects for which EIA must be implemented

・ Projects that require approvals of the national assembly, government or prime minister

・ Projects that use designated natural reserves, national parks, historical or cultural sites, world heritages,

biosphere reserves and scenic sites

・ Projects that might have a negative impact on the environment

b) Implementation of EIA

・ The project implementing entity can implement EIA on its own or request a consultation firm to conduct

EIA. In either case, the project implementing entity will take legal responsibility for the result of EIA.

・ EIA must be conducted in the preparatory stage of a project.

・ The result of EIA will be included in the EIA evaluation report .

・ The costs for the preparation of EIA report and review are to be paid from the invested fund of the project

implementing entity without fail.

c) Recreation of EIA reports

The project implementing entity must prepare EIA reports again if any of the conditions below applies:

・ The project has not started within 24 months from the time of the issuance of the approval decision

document for the EIA evaluation report.

・ The project takes place in a location different from the project implementation site indicated in the approved

EIA reports.

・ The scale of the project is expanded from that stated in the approved EIA reports and it causes a change in

operating capacity and technologies, which result in the worsening of environmental impacts.

d) Main contents in EIA reports

・ Background of the establishment, the project implementing entity, authority approving the project, and

method for implementing EIA evaluation.

・ Selection of work method and evaluation of work and activities for a project that might have negative

impacts on the environment

4-44

・ Explanations on the natural environment of the project implementation site and surrounding area, evaluation

of the current socioeconomic environment, and the suitability of the project location

・ Estimation and evaluation of impacts from the waste generated in a course of project implementation.

Estimation and evaluation of impacts on environment and people’s health

・ Estimation and evaluation of the project’s risks on environment and people’s health and risk management

measures

・ Waste disposal

・ Measures to control impacts on the environment and people

・ Consultation results

・ Environmental management and audit program

・ Construction costs for environmental protection facilities and implementation costs of environmental

impact reduction measures

・ Methods for implementing environmental protection measures

e) Authorities to review EIA reports

・ MONRE reviews EIA reports for projects below:

・ Projects for which the national assembly, government or prime minister decides the investment

・ Project that span over multiple fields or regions, excluding classified projects associated with national

defense or public safety

・ Projects specified by the government

・ Each ministry or equivalent agency review EIA reports of projects that are within their power of approval

excluding projects described in a) and b) above

・ Ministry of Defence and the Ministry of Public Security review EIA reports of projects that are within their

power of approval and classified projects associated with national defense or public safety

・ Provincial people’s committee review EIA reports for projects that invest in respective province, excluding

projects described above.

f) Review of the EIA report

・ The representative or head of the organization subject to review must review the EIA report with the

consultation of the review committee or relevant organizations and take legal responsibility for the review

result.

・ As needed, the reviewing institution of the EIA report must carry out on-site verification and hear opposing

views from agencies, organization and specialists of different fields.

・ If there is a need for corrections or additions during the review period, the reviewing institution must notify

the project implementing entity to such effects in writing.

g) Approval of the EIA report

・ Within 20 days of receiving EIA report that is corrected and supplemented as pointed out by the review

committee, the head of the reviewing institution must consider and make decision regarding the approval of

the EIA report. If the report is to be rejected, a response with its reasoning must be given to the project

4-45

implementing entity in writing.

h) Project implementing entity’s responsibility after the approval of EIA report

・ Comply with and implement the approval decision document for the EIA report.

・ If environmental impacts are worse than indicated in the approved EIA report due to change in scale,

production capacity or technologies, but not to the level that requires recreation of EIA reports under Article

20, clause 1, c) of the Law on Environmental Protection, the project implementing entity may start the

project after explaining the situation to the approving authority and receiving the consenting document from

the approving institution.

i) Project implementing entity’s responsibilities prior to the operation of the project

・ Implement environmental protection measures based on the approval decision document for the EIA report.

・ For large-scale projects as stipulated by governmental provisions and with potential for negative

environmental impact, the environmental protection work must be carried out and its result reported to the

EIA report approving authority. These projects cannot be operated until EIA report approving authority

inspects the environmental protection work and confirms the completion of the work.

j ) Responsibilities of the EIA report approving authority

・ Take legal responsibility for the review result and approval decision of EIA report

・ Within 15 days of receiving the project implementing entity’s report for the completion of the

environmental protection work, the EIA report approving authority must inspect the completed

environmental protection work and issue a confirmation of the completion of the work. If the analysis of

environmental indexes is complicated, the deadline for issuing the confirmation of such environmental

protection work completion can be extended, but not more than 30 days.

4) Environmental and social impacts from the project implementation

Here, issues and necessary measures for the construction of ultrasuper critical coal-fired thermal power plants are

examined, by using the checklist for thermal power given in the JICA Guidelines for Environmental and Social

Considerations (April 2010). The items to pay special attention in terms of environmental and social

considerations are as follows:

a) Impacts on ecosystems (cutting of mangroves)

A mangrove wetland exists along the coast near the Project site, but it is not designated as a special protection

area. According to the World Bank’s safeguard policies, mangroves are considered to be a natural habitat.

Natural habitats are classified into Categories A and B, and no financing will be approved if a grave change

or deterioration of natural habitat will occur in Category A. For Category B, if it is decided that the impact is

not grave, there is no alternative, and overall benefits from the project are much greater than the

environmental costs, financing is approved with conditions to incorporate appropriate mitigation measures.

With this in mind, a proposal has been made to move the site toward inland in order to minimize the

4-46

environmental impacts, from the usual site for power plants which usually face a coast. Natural forests

including mangroves are managed by the Provincial People’s Committee of Bac Lieu and for any forest

development in excess of 20ha, a notification to change the land use must be submitted and the approval of

the prime minister obtained. Any work must proceed by checking with the Provincial People’s Committee of

Bac Lieu that oversees the regional development. The people’s committee received the proposal to move the

site inland to protect mangroves favorably.

b) Impacts on ecosystems (thermal effluent)

During the plant operation, a large quantity of cooling water will be discharged into the sea; thus, the effect

that thermal effluent and sea water temperature rise have on the ecosystems must be examined on the

continuous basis starting in the EIA stage.

c) Pollution measures (air)

At this point, there is no large factory that causes air pollution in the area. It will be necessary to implement

appropriate measures to control air pollution from transporter vehicles during construction, flue gas during

operation, coal dust from coal transporting facilities and dust from ash disposal sites.

d) Pollution measures (water quality)

On the northern and western sides, shrimp farms have been developed. In shrimp farming, insecticide and

herbicide are used and sites are emptied and disinfected using lime regularly, producing a large quantity of

polluted water. The water is then discharged to the sea outside of the levees.

According to the residents, the quality of the water taken has worsened due to effluent from the factories

upstream. It has caused the shrimp harvest to go down but they don’t know who to turn their anger on. If the

power plants are is to be developed, water quality before the development must be examined in an open

manner with the coordination with the people’s committee so that the project will not be blamed for the water

quality deterioration.

e) Pollution measures (noise)

Even through the measured noise level around the power plant has not been obtained, it was confirmed that

there is no large source of noise during the field study. With a residential area along the river on the eastern

side of the power plant, the noise level near the current boundary must be checked and evaluated. In some

cases, the reduction of nighttime work, construction of partial sound barrier in the adjacent area and other

measures might be required.

f) Pollution measures (waste)

Coal ash and gypsum will be produced through the operation of the Project. Coal ash will be transferred to

the disposal site using the slurry method. While the capacity of the disposal site seems sufficient, further

examination will be needed to reduce the size of the ash disposal site with the plans to reduce waste by

utilizing coal ash and gypsum in bricks, etc.

4-47

g) Social environment (resettlement of residents)

The residents subject to resettlement due to construction on the site live mainly along the river. In other areas,

there are shrimp monitoring huts. Some houses seem to make living by serving as a rest area for bikers.

Based on the field survey, those subject to resettlement due to the Project will be 30 households (about 120

persons) in the case of 30,000DWT, and 140 households (about 560 persons) in the case of 10,000DWT.

There are many aqua-culture ponds and salt fields in this area, therefore, when the site is prepared before the

construction work, houses and aqua-culture ponds must be relocated. Thorough consideration is needed

during the EIA stage.

h) Social environment (work environment)

The area around the site is a poor area where it is hard to obtain drinking water since wells only produce sea

water. It is necessary to develop infrastructures for the area in order to secure food, clothing and housing for a

large number of workers as well as for locally hired workers during construction and staff in charge of

operation. It is important to build hospitals to prepare for any injury or diseases.

4-48

(5) Responsibilities of the Host Country for the Realization of the Project

The project is categorized as a project that require the preparation of EIA report, according to Vietnamese

decrees, and the implementing entity must hold preliminary meetings with relevant ministries and agencies

such as MONRE and with people’s committee to clarify the specific steps for conducting EIA.

Table 4-31 List of projects required to submit EIA report (Excerpt)

Appendix

List of projects required to submit EIA report

(Announced along with Decree No.21/2008/ND-CP dated Feb. 28, 2008)

No. Project Scale

1 National projects and programs that are required to submit EIA to the

national assembly for approval, as stipulated in the national assembly

resolution (No.66/2006/NQ11) dated Jun. 29, 2006.

All

2 Projects that use, in part or in entirety, natural reserves, historical or cultural

heritage, world heritages or biosphere reserves, or famous scenic sites,

registered or unregistered, that are protected under the decision of a

province or government-run city.

All

3 Projects that might cause grave impacts on a river basin, coastal area, or

water resources in a biologically diverse area under protection.

All

(omitted）

Construction projects related to energy and radiant energy

38 Nuclear reactor construction projects All

39 Manufacturing, business or service facility construction projects that use

radioactive materials or generate radioactive waste

All

40 Projects related nuclear PP or thermonuclear fusion power generation All

41 Thermal power generation projects 30MW

or more

(the rest omitted)

Source: Announced along with Decree No.21/2008/ND-CP dated Feb. 28, 2008

Chapter 5 Financial and Economic Evaluation

5-1

(1) Project Cost Estimation At this point, the Vietnam side has not decided between the supercritical (SC) plants and ultrasuper critical (USC)

plants, or between the 30,000DWT coal ship and 10,000DWT coal ship for the Project. These matters will be

decided after the thorough consideration from the viewpoint of economy, etc.

The generating capacity is planned to be 1,200MW (600MW x 2 units) per phase, with a total of 3,600MW for all

three phases; however the planned capacity may be altered if it is economically and technologically feasible. The

larger capacity has more advantages in terms of economy, and the proposal made with a large capacity of

1,000MW will give Japanese companies more reason to participate in the Project since Chinese and Korean

companies have less experience with large-capacity power plants. In light of this, this study examined six cases as

shown below:

1) Construction cost

The construction cost was calculated by referring to the contract amounts for recent and similar coal-fired thermal

power plants in Vietnam and other Southeast Asian countries. The result is shown in Tables 5-1 and 5-2. Phase 1

which is covered in this study aims to develop common facilities serving all the power plants (substation, power

and harbor, land preparation, etc.) and includes the cost for those facilities. Therefore, costs listed under Phase 1

are higher in comparison to other similar projects.

Table 5-1 Estimated construction cost for Bac Lieu power plants (Phase 1) with the 30,000DWT ship plan

(US$ Million)

Item


600MW×2 600MW×2 1000MW×1

SC USC USC












9 Total 2,379 2,398 1,987

Source: Prepared by Stud Group

5-2

Table 5-2 Estimated construction cost for Bac Lieu power plants (Phase 1) with the 10,000DWT ship plan

(US$ Million)

Item


600MW×2 600MW×2 1000MW×1

SC USC USC












9 Total 2,268 2,287 1,876


The Project requires the construction of transmission lines from the power plants to the existing main substations;

however the cost for the work is borne by NPT and is therefore not included in the figures above.

5-3

Table 5-3 shows the breakdown of each cost to the foreign funds and domestic funds for Case 2. The ratio is

similar in other cases.

Table 5-3 Breakdown of construction cost for Case 2: USC 600MW×2 units, 30,000DWT plan

Item

Foreign portion (US$ million)

Domestic portion

(VND billion）

Total (US$ million)

1

Boiler & flue gas desulfurization

equipment 483 3,470 646

2 Steam turbine & generator 376 1,804 461

3

Other equipment & civil engineering

work 457 4,273 658

4 Port system 39 4,639 257



compensation 0 1,734 82


8 Contingency 141 1,630 218

9 Total 1,554 17,930 2,398

Exchange rate; US$1=VND21,246


5-4

2) Running cost

The running cost includes those listed below:

a) Fuel cost

The Project assumes coal import from Indonesia or Australia. In this calculation, assumptions were made that coal

with a higher calorific value of 5,100kcal/kg is imported at US$95/ton.

b) O&M cost

Decision 2014/2007/QD-BCN of Vietnam stipulates that the figure obtained by multiplying the power generation

facility and construction cost by 3.5% is to be used as O&M cost.

c) Depreciation

Depreciation was calculated by assuming the straight-line method, residual value of zero and depreciation period

of 20 years.

d) Interest cost

The interest rate of JBIC’s buyer’s credit or that of the yen loan as of now is used.

e) Corporate tax

The tax rate of 0-20% is used for respective fiscal year by taking into consideration the preferential taxation for

thermal power plants.

(2) Result of the Preliminary Financial and Economic Analyses The preliminary financial and economic analyses in this study are conducted according to Decision

2014/2007/QD-BCN, which stipulates the methodology of financial and economic analyses for power generation

projects in Vietnam. The economic analyses such as Economic Internal Rate of Return (EIRR) are carried out first,

followed by the calculation of Financial Internal Rate of Return (FIRR) and tariff estimation.

1) Economic analyses

According to Decision 2014/2007/QD-BCN of Vietnam, Economic Internal Rate of Return, Cost-Benefit Ratio

and Net Present Value must be calculated by considering the revenue from electricity sales as an economic

benefit.

5-5

a) Assumptions

In economic analyses, the calculations are done for several cases, assuming the use of JBIC’s buyer’s credit (BC).

Terms and conditions of the BC are determined based on the provisions of the OECD Arrangement.

The loan amount should not exceed the value of an export contract and excludes down payment. While export

loans, in principle, do not apply to local costs, such costs may be covered, full or partially, provided that their

amount does not exceed down payment ( as well as 15% of the export value).

The maximum repayment period differ depending on importing countries, goods and services. When considering

a coal-fired power plant, the maximum repayment could be 12 years. Generally, the sum of principal and interest

has to be repaid, in general, in equal, semi-annual installments.

Commercial Interest Reference Rates (CIRRs) at the time of commitment are applied. In the case where interest

rate is to be fixed at the time of tender, CIRR + 0.2% is applied. The risk premium shall be charged, in addition to

CIRRs, to cover the risk of non-repayment.

The main assumptions used for the calculation are shown in Table 5-4.

Table 5-4 Main assumptions

Item Value Remarks

Tariff US¢9.1/kWh A higher value than other coal-fired power plants considering

that imported coal is used and common facilities for the entire

plants are developed during Phase 1

Annual operation time 6,500 hr./year Stipulated in Decision 2014/2007/QD-BCN

Thermal efficiency (SC) 41.08% Calculated based on the assumed specifications and properties


Thermal efficiency

(600MW USC)

41.88% Calculated based on the assumed specifications and properties


Thermal efficiency

(1000MW USC)

41.96% Calculated based on the assumed specifications and properties


Auxiliary power ratio 7.8% The value from the similar projects is used

Escalation rate N.A. Not considered based on Decision 2014/2007/QD-BCN

Interest rate 2.19% Standard Yen-denominated interest rate for Vietnam

Redemption period 12 year Standard Yen-denominated interest rate for Vietnam

Discount Rate 10% Stipulated in Decision 2014/2007/QD-BCN

Debt Equity ratio 7 : 3 The value from the similar projects is used


5-6

b) Calculation result

The result of the calculation with these conditions is given in Table 5-5. In all cases, EIRR is higher than 10%, the

hurdle rate stipulated by the decrees, the Benefit Cost Ratio is greater than one (1) and NPV is a plus figure; thus

the Project is judged to have economic value.

When 30,000DWT cases and 10,000DWT cases are compared, 10,000DWT cases have higher EIRR since the

cost for construction and regular dredging is less.

Table 5-5 EIRR, B/C and NPV

Case 1 Case 2 Case 3 Case 4 Case 5 Case 6

600MW×2 600MW×2 1,000MW×1 600MW×2 600MW×2 1,000MW×1

SC USC USC SC USC USC

30,000DWT 10,000DWT

Economic Internal Rate of Return (EIRR)

10.01% 10.11% 10.27% 10.53% 10.63% 10.91%

Benefit Cost

Ratio (B/C) 1.00 1.00 1.01 1.02 1.03 1.04

Net Present

Value (NPV) 2 23 47 104 125 150


5-7

2) Financial analyses

a) Conditionality

EVNGenco2 is planned to be the organization responsible for the development of the Project. In this study, the

calculations are done for several cases, assuming the use of JBIC’s buyer’s credit or yen-loan. It was revealed

through the interview with JICA that the condition for the yen-loan is the adoption of ultrasuper critical plants

which have better generation efficiency than supercritical plants, less environmental impact, and higher

construction cost. Since the probability of obtaining yen-loan is small for supercritical projects which are currently

formulated in Vietnam, the calculation was done for the cases that use buyer’s credit from JBIC. For ultrasuper

critical plants, the calculation was done for both the buyer’s credit and yen-loan.

The Japanese government decides the loan conditions based on the income level, etc. for the borrower country.

Since Vietnam is considered a low-income country, the specific loan conditions are as follows:

Table 5-6 Major terms and conditions of Yen-loan

Source: JICA

The loan conditions include General Terms, Preferential Terms and STEP (Special Terms for Economic

Partnership), and the terms to be applied will be determined based on the wish of the borrower country, the

Vietnamese government, and the Japanese government’s evaluation of the Project. USC uses highly efficient

technology with small a environmental load, which Japan takes pride in, and STEP might be applied. However in

this study, trial calculation was done with the General Terms, using the interest rate of 1.40%, repayment period of

30 years and grace period of 10 years.

5-8

b) Calculation result

The financial analysis result using the conditions described in the economic analyses section except for the

conditions for yen loan is shown in Tables 5-7 and 5-8. The yield of Vietnam’s 10-year government bonds has

gone down from about 12% in 2012 to 7.2% as of the end of December 2014. Considering the yield of 10-year

government bonds as the hurdle rate, FIRR is greater than this value in all cases, making the Project viable from

the financial point of view.

Table 5-7 EIRR, and NPV with the 30,000DWT ship plan


600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1

SC USC USC USC USC



(FIRR) 15.47% 15.68% 16.03% 23.86% 24.24%

Net Present Value

(NPV) 484 507 447 906 777


Table 5-8 FIRR, and NPV with the 10,000DWT ship plan


600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1

SC USC USC USC USC



(FIRR) 16.58% 16.79% 17.41% 25.06% 25.70%

Net Present Value

(NPV) 558 581 520 961 832


5-9

c) Estimated tariff

Vietnam’s decrees require FIRR to be 15% or lower. With the estimated tariff of US¢9.1/kWh, FIRR goes up if

low-interest loans such as buyer’s credit and yen-loan is used, and Table shows the electric tariff when FIRR is

assumed to be 15%. With the use of low-interest loans from Japan, the interest cost can be reduced and electric

tariff lowered. In addition to low interest rate, the yen-loan grants a grace period of 10 years, which could defer

the financial burden of the load repayment for the future and help lower the electric tariff even further.

Table 5-9 Tariff when FIRR is 15% (US¢/kWh)


600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1

SC USC USC USC USC


9.01 8.97 8.90 7.77 7.71


600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1

SC USC USC USC USC


8.81 8.77 8.67 7.62 7.54


Chapter 6 Planned Project Schedule

6-1

Figure 6-1 shows the planned Project schedule:

Figure 6-1 Planned Project schedule

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Approval of revised PDP7 Site Masterplan Feasibility study (FS) Environmental and social

impact assessment

Financing arrangement Acquisition of licenses and

permissions

Consultant selection Infrastructure construction and

site work

EPC bid Construction and installation

work

Coastal work (dredging, levee,

etc.)


(1) Approval of revised PDP7

Before EVNGenco2, which will be the main implementing entity of the Project, can conduct a feasibility study, the

PDP7 which is currently being revised must be concluded. Based on the interviews with IE and others, it is likely to

be approved by the government after the second quarter of 2015.

(2) Site Masterplan

EVNGenco2 shall conduct the site masterplan, which will be a kind of pre-feasibility study in Vietnamese method,

and submit to the government in order to fix the schedule in the revised PDP7. Necessity of the project, site location,

fuel, technology, grid connection and support from local people’s committee level etc are shown in the site

masterplan.

(2) Feasibility study

This study is a preliminary study to confirm the feasibility and thus, before the Project is realized, more detailed

feasibility studies regarding its commercialization will be required. After the revised PDP7 is approved, the decision

regarding the layout, optimization of the plant performance and reevaluation of the economic aspect will be done,

taking about a year.

Unit1 Unit2

6-2

(3) Environmental and social impact assessment

All the international financial institutions that offer financing have their own guidelines regarding environmental

and social considerations; therefore impact assessments must be performed in accordance with such guidelines.

(4) Financing arrangement

The entity responsible for the implementation of the Project will be EVNGenco2; thus if funds from Japan are used

for the development, it will be by either yen loan assistance or buyer’s credit (BC). Based on the results of the

detailed feasibility study and environmental and social impact assessment, the amount to be covered by financing,

conditions, payment period and other matters will be negotiated.

(5) Acquisition of licenses and permissions

Various licenses and permissions must be obtained from related ministries and agencies and the Provincial People's

Committee of Bac Lieu before commencing the acquisition of the land or site preparation work.

(6) Consultant selection

The consultants offer consultation regarding the preparation of EPC bid specifications, engineering, management of

EPC work, and the process, quality and safety management during the construction period.

(7) Infrastructure construction and site work

Prior to the start of the construction and installation work, the preparatory work for the planned power plant

construction site will be done, including filling and leveling of the land as well as the construction of the

infrastructures such as the roads to the power plant, power sources for the construction work and site office.

(8) EPC bid

Based on the EPC bid specifications prepared by the consultants selected for the job, an international competitive

bidding is done to select the EPC contractor. In the Project, the EPC bidding is assumed to be the type of bidding

where Japanese equipment manufacturers or trading firms function as a wrapper.

(9) Construction and installation work

Since it is coal-fired thermal power generation plants, the standard construction period of four and a half years is

assumed. It compares favorably enough to the work period seen in Vietnam, as the standard construction period for

coal-fired power plants in the country is considered 52 months.

(10) Coastal work

The dredging of the ocean bottom, construction of levees and docks for coal ships and other work will be carried

out along with the EPC construction and installation work, in order to ensure that coal ships can dock at the power

plant. The construction period is assumed to be two and a half years even though the work period can differ

somewhat depending on the work volume for 30,000DWT and that for 10,000DWT. The work period will be

examined more closely during the feasibility study that will be conducted in the future.

Chapter 7 Implementing Organization

7-1

(1) Outline of the Implementing Organization

1) EVN: Vietnam Electricity

EVN was established in 1995 as a state-run company to integrate the power sectors and operate power generation,

transmission and distribution systems in a unified manner under the electricity policy set by the government. After

the effectuation of the New Electricity Law in 2004, EVN’s budgets have been strictly separated from the

government budget, and EVN receives no funds from the government except for some subsidies. Ever since the

Law on State Enterprise was repealed in July 2010, it has been operated as a limited liability company owned

solely by the government.

EVN as a group owns and manages major power plants, load dispatching offices, transmission companies,

distribution companies, power facility inspection and design firms, while preparing power source development

plans and proposed amendments to tariff. The subsidiaries are divided into three types: “directly controlled

companies” that EVN owns totally and plans their budgets; “financially independent companies” that are owned

by EVN but have self-supporting accounting system; and “JSC (Joint Stock Company)” whose stock is partly

owned by EVN. The subsidiaries of EVN and their roles are shown in the figure below:

Figure 7-1 List of EVN group companies


7-2

Figure 7-2Roles of EVN group companies


a) Power generation companies

The power generation companies under EVN include directly controlled companies such as Hoa Binh

Hydropower Company, and financially independent companies such as Genco1, Genco3 and Genco2 that is

planned to be the developer of the project.

b) EPTC：Electric Power Trading Company

The Electric Power Trading Company (EPTC) is under EVN, and acts as a window of EVN’s electricity trade

such as the conclusion of PPAs, and will take a role of a sole buyer in the power market in the future.

c) NLDC: National Load Dispatching Center

As one of EVN’s directly controlled companies, NLDC operates the load dispatch system by coordinating with

Regional Dispatch Centers located in the northern, central and southern regions of the nation. The main duties of

NLDC are the operation of the 500kV, 220kV and 110kV systems and issuance of operation orders to power

plants, thus playing a core role in coordinating supply and demand for northern and southern Vietnam. NLDC is

also responsible for the operation of the competitive power generation market that launched in July 2011.

d) NPT: National Power Transmission corporation

NPT was established in July 2008 by integrating four transmission companies that operated in the northern region

(PTC1), north-central region (PTC2), south-central region (PTC3) and southern region (PTC4). NPT is under the

direct control of EVN, and operates and maintains the 220kV - 500kV transmission facilities for the entire

Vietnam. It also is responsible for the construction investment for plans to expand and enhance the transmission

Directly controlled EVN’s

GENCOs

Financially independent EVN’s

Power companys

IPP・BOT PVN,.

VINACOMIN, etc.

Electric Power Trading Company (EPTC) ＜EVN’s directly controlled company＞ National Load Dispatch Center (NLDC)

＜EVN’s financially independent company＞ National Power Transmission Corporation (NPT)

Commune business entity／Local Distribution Unit (LDU)

Customers

【Generation】

【Dispatch】

【Transmission】

【Distribution】

【Retail】

＜EVN’s financially independent company＞ 5 Power Corporations (Northern, Central, Southern, Hanoi, and Ho Chi Minh City)

7-3

facilities.

e) Distribution and retail company (PC: Power Corporation)

There are five Power Corporations in the different regions on the country (Northern, Central, Southern, Hanoi

City and Ho Chi Minh City Power Corporations) and they are financially independent from EVN. They supply

power to their respective regions.

2) Financial status of EVN

Pushed by increasing electricity sales, their sales jumped from about 65 trillion VND in 2008 to about 178 trillion

VND in 2013, about 2.7 times greater. On the other hand, the net debt increased significantly from about 139

trillion VND in 2008 to about 360 trillion VND in 2013.

Vietnam’s power supply heavily relies on hydroelectric power which accounts for 40% of electric power in the

country. There was a decline in rainfall amount in 2010, resulting in decline in power produced by hydroelectric

power plants. Faced with power shortage, EVN had to operate the coal-fired and oil-fired power plants with a

higher operation cost and import power from China, running a deficit.

Table 7-1 Profit-and-loss statement of EVN

Unit: Million VND

2008 2009 2010 2012 2013

Total Revenue 64,797,607 79,999,251 98,417,440 149,003,829 177,850,281

Net Sales 64,715,085 79,955,153 98,410,146 149,002,366 177,849,938

Costs of Goods Sold 54,814,309 66,929,662 85,003,002 116,008,041 144,353,843

Gross Profit 9,900,776 13,025,491 13,407,144 32,994,325 33,496,095

Net Profit from Operation 1,076,604 2,803,506 (1,079,798) 8,510,295 10,083,551

Other Profits 531,405 10,643 205,791 919,045 10,369,889

Gross Profit before Tax 1,878,471 3,491,662 (662,794) 9,552,737 10,369,889

Corporate Tax 382,028 375,521 216,041 584,323 1,009,159

Net Profit after Tax 1,496,443 3,116,141 (878,835) 8,697,179 9,370,730

Source: Source: prepared by Study Group based on the EVN Annual Report

7-4

Table 7-2 Balance sheet of EVN

Unit: Million VND

2008 2009 2010 2012 2013

Current Assets 50,170,544 61,935,158 76,266,504 78,500,000 87,994,881

Non-Current Assets 154,192,248 191,787,229 233,869,631 367,538,673 428,640,780

Total Assets 204,362,792 253,722,387 310,136,135 446,038,673 516,635,661

Current Liabilities 30,373,244 43,245,794 65,429,155 79,808,371 101,612,928

Non-Current Liabilities 108,173,055 139,448,343 174,269,898 230,766,952 258,137,080

Total Liabilities 138,546,299 182,694,137 239,699,053 310,575,323 359,750,008

Owner's equity 62,593,520 65,867,792 64,595,654 128,786,323 149,928,090

Minority shares 3,222,973 5,160,458 5,841,428 6,677,027 6,957,563

Total Liabilities and Owner's Equity 204,362,792 253,722,387 310,136,135 446,038,673 516,635,661

Source: prepared by Study Group based on the EVN Annual Report

EVNGenco2 is newly established in June 2012 to be financially independent from EVN, and its financial situation

is probably tight on its own as is the case with EVN; however it is expected to recover in 2016 - 2017 thanks to

operational efficiency improvement and the loan program by ADB to support GENCOs.

Since foreign banks and local banks remain willing to offer loans to large state-run companies such as EVN and

PVN and the level of public bonds including government-guaranteed bonds is kept at an appropriate level, the

financing arrangement is likely to be possible.

(2) Vietnam’s Organizational Scheme for the Project Implementation For the implementation of the Project, the revisions to PDP7 which is currently examined by IE must be formally

approved by the Vietnamese government. In this study, the Study Group had visited NPT to check the review

status of the transmission lines, but NPT was unable to review anything at that point since the formal decision had

not been made on the PDP revision. However, their position was that they will review the transmission line plan

after the formal decision and take measures without any problem. After the formal decision is made on the PDP7

revisions, the progress will be made on the Project toward the start of the commercial operation, by collaborating

with relevant organizations.

7-5

(3) Evaluation of the Vietnamese Implementing Organizations’ Ability and

Measures (if insufficient) EVNGenco2 is the likely implementing organization of the Project. It has been engaged in coal-fired thermal

power generation since the 1970s and has tackled coal-fired power technology by sending its engineers to Russia

to be trained on such technology in the early stage of its involvement, etc.

Currently, EVNGenco2 plays a core role in the O&M technology in Vietnam. When other power providers in

Vietnam develop a new power plant, they send their operators and technicians to Pha Lai power plant for OJT

before the start of operation. Pha Lai power plant are subsidiaries of EVNGenco2. The coal-fired thermal power

facilities owned by EVNGenco2 are listed in the table below:

Table 7-3 Power plant outline of EVNGenco2

Power plant name Output Fuel Steam

condition

Main equipment maker Start of

operation Boiler Turbine

Pha Lai１*1 110MW×4

Domestic

coal

(anthracite

coal)

Subcritical

(Made in Russia) 1983 -1986

Pha Lai２*1 300MW×2 Mitsui

Babcock GE 2000 - 2004

Hải Phòng1/2 *2 300MW×2

Dongfang

Electric

Corp.

Fuji Electric

Systems 2009

Hải Phòng3/4 *2 300MW×2

Dongfang

Electric

Corp.

Fuji Electric

Systems 2014

*1 Owned by Hai Phong Thermal Power Joint Stock Co. EVNGenco2 owns 51% of stock of the company.

*2 Owned by Pha Lai Thermal Power Joint Stock Co. EVNGenco2 owns 51% of stock of the company.


EVNGenco2 works to obtain necessary operational techniques by receiving O&M training from the EPC

contractor before the start of operation when a new power plant is developed and by conducting a trial operation

of such power plant with the EPC contractor and making it part of the OJT. After the start of operation,

EVNGenco2 operates such power plant in accordance with the Vietnamese laws by conducting an environmental

monitoring every quarter term and submitting the measured results to the competent ministries and agencies.

Hence, EVNGenco2 is considered to have sufficient technical level and ability to be the implementing

organization for the Project.

The plan for the Project is to adopt either the supercritical plant or ultrasuper critical plant, and the technological

and operational shift such as that from the drum boiler to the once-through boiler will be necessitated. However in

7-6

Vietnam, Vinh Tan 4 coal-fired supercritical power project by EVNGenco1 and Duyen Hai 3 extension

supercritical coal-fired power project by EVNGenco3 are planned to start operation in 2018. Since the Project is

planned to start operation around 2023, Vietnam would have operated supercritical plants for about five years.

Considering that the technical difference between the operation of the supercritical plant and ultrasuper critical

plant is not so great, the technical shift in this Project to supercritical or ultrasuper critical plants might go

smoothly.

Chapter 8 Technical Advantages of Japanese Company

8-1

(1) Expected Forms of Participation for Japanese Company

For this Project, an informal decision has been made that EVNGenco2 will be the Phase 1 developer. The

participation by a wide range of Japanese companies is expected for the Project such as heavy electric machinery

makers that have the ample record for delivering high-efficiency coal-fired thermal power generation facilities

inside and outside of Japan, commercial firms acting as an EPC contractor to comprehensively engage in design,

procurement and construction of those facilities, engineering companies, general construction companies to

conduct civil construction work, etc.

Japanese commercial firms have long procured coal of various grades from a wide range of sources throughout

the world and supplied it to coal-fired power plants in and out of Japan in addition to performing their duties as an

EPC contractor. Their participation is anticipated as a fuel supplier to the Project.

Vietnam has no experience operating supercritical or ultrasuper critical high-efficiency power plants at this point;

thus to operate, maintain and manage cutting-edge power plants, operational support by Japan’s power companies

might become an option since they have owned, operated, maintained and managed high-efficiency coal-fired

thermal power plants, and have accumulated knowhow particular to high-efficiency coal-fired thermal power

generation.

If common facilities are fully developed during Phase 1 with the technological help and capital from Japan,

Japanese commercial firms and power companies might feel comfortable participating as a project entity in

Phases 2 and 3 which are planned to be developed as BOT/IPP.

(2) Advantages of Japanese Company for the Project Implementation 1) Technological advantages

With Japan’s low rate of energy self-sufficiency, it has to rely on fuel imported from overseas, and as a result, it

has a keen interest in highly efficient use of energy and has tackled the technological development for

high-efficiency thermal power generation. Prompted by the worldwide concern for global warming in recent years,

Japan has continuously worked to develop technology for environmental protection including those for ultrasuper

critical power generation, flue-gas desulfurization equipment and electrostatic precipitator to reduce

environmental load such as CO2, NOx, SOx, particle matters, etc. emitted from coal-fired thermal power plants.

Thanks to these technological developments, Japan’s thermal power generation technology and products are at a

globally high level, and the thermal power field has gained economical and environmental advantages. The use of

Japanese heavy electric machinery makers could be an attractive option for Vietnam.

8-2

As for the operation and maintenance technology for coal-fired power plants, Japanese power companies adopted

supercritical and ultrasuper critical power generation technologies early on, and have accumulated ample

technology and knowledge. With these advantages, the Japanese power companies work to reduce operation and

maintenance costs and ensure reliability, by placing utmost priority on the maintenance of high thermal efficiency

and reliable power supply. Especially for the operation of coal-fired thermal power plants, Japanese power

companies possess technology to utilize various types of coal especially imported coal, as well as technology to

effectively utilize resources, such as the use coal ash generated from power plants in civil work and building

material., etc. in addition to O&M technology above.

With regard to the power plant construction technique, Japan’s heavy electric machinery manufacturers are

excellent in managing schedules for construction work. Building a power plant can take a long time and the ability

to stick to a schedule in such work is very important in a situation with electric power shortage such as one that

Vietnam is experiencing.

For the reasons above, and the technological advantages of thermal power generation facilities, O&M technology

and experience addressing issues particular to coal-fired thermal power generation facilities, and other

comprehensive technological abilities superior to many other countries, the use of Japan’s coal-fired thermal

power generation technology is likely to be attractive to Vietnam.

2) Economical advantages

To demonstrate the advantages of Japanese companies in international competition, it is important for the

government and private sector to join force and promote the export of an infrastructure package that includes the

supply of infrastructures, excellent technology, financing, O&M, etc. While infrastructure projects tend to have

higher project cost that comes with undertakings by Japanese companies in other countries could be reduced

through collaboration with those companies and public institutions such as JBIC (BC, Overseas investment loans),

JICA (Yen loan), etc.

With regard to collaboration with public institutions, President Obama of the USA announced the Climate Action

Plan in June 2013, and declared to end the use of public funds to assist new construction of coal-fired thermal

power plants overseas. He also requested other countries and multilateral development banks to take similar

actions without delay, spreading the move among public institutions in Europe and the United States to limit the

public financing and support for coal-fired thermal power plants.

On the other hand, Japan’s policy is to offer strategic economic cooperation and infrastructure systems including

coal-fired thermal power plants, on the belief that if the introduction of a coal-fired thermal power plant is

required, Japan will contribute to increasing the plant efficiency and lowering carbon emissions. There are cases in

Vietnam where JBIC financed a new coal-fired thermal power project for which the Export-Import Bank of the

United States had stopped financing.

8-3

When offering financing support to overseas projects, it is important for the government and private sector to

work together and share roles, with the government bearing the political risks in addition to contributing and

financing necessary funds. NEXI’s trade insurances play an important role when promoting the export of

infrastructure systems.

With the invitation and training assistance by JICA, the transfer of technologies necessary for the operation,

maintenance and management of thermal power plants to Vietnamese counterparts will be possible, and the host

country might be able to continuously enjoy the benefit of the development (job creation, technology transfer,

etc.) that would not be possible with public aid through usual yen load assistance. The project development based

on the collaboration between the government and private sector could give economical advantages to such

activities undertaken by Japanese companies.

(3) Necessary Measures to Promote Contracting Japanese Company The Project implementing entity is planned to be EVNGenco2, and it hopes for financing with either buyer’s

credit or yen load assistance. As stated above, the public institutions in Europe and USA are restricting the use of

public funds to support coal-fired thermal power plants. However, competition with Chinese or Korean makers is

expected to be severe as usual.

Japanese companies are working towards the reduction of carbon emissions through state of the art technologies

such as those for ultrasuper critical thermal power plants. In order for the Project to have a high investment effect,

public assistance from Japan’s export credit agencies such as JICA and NEXI, or yen loan assistance is

imperative.

Reproduction Prohibited

study on the ultra super critical coal-fired power plants in bac

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