EVN signs the 74.7 million Euro non-guarantee governmental loan for Ialy Hydropower plant Extension Project

In the afternoon of June 29, in Hanoi, Vietnam Electricity (EVN) and the French Development Agency (AFD) held the Credit facility agreement Signing ceremony of non-guarantee Governmental concessional loan worth 74.7. million EUR (equivalent to 1,900 billion VND) for the Ialy Hydropower Plant Extension Project.


Ialy Hydropower plant  extension Project:

-  Investor: Vietnam Electricity (EVN)

- Representative of the Investor for project management and operation: Power Project Management Unit 2

- Construction location: Ya Tăng commune, Sa Thay district, Kon Tum province and Ia Mo Nong, Ia Kreng communes,  Ialy town, Chu Pah district, Gia Lai province

-  Design consultant: Power Engineering Consulting JSC 1

-  Total investment: About 6,398 billion VND

-  Expected commencement: Quarter II/2021

-  Power generation of unit 1: Q II/2024; unit 2: Q III/2024

-  Project completion: December 2024.


The Ialy Hydropower Plant extension project has a total investment of about VND 6,398 billion, with a total installed capacity of 360MW. The non-guarantee government concessional loan that EVN has just signed accounts for about 30% total investment of the project. This project was carried out by PECC1 in terms of Technical Design and Cost Estimates preparation in accordance with the Decision No. 207/QD-HDTV from Vietnam Electricity.

Once completion, the project will contribute to increase capability to mobilize capacity for loads in the Southern region, particularly during peak hours; contributing to improve working regime of the power system (increasing the source and peak coverage power of the load graph, increasing the flexibility in operation, increasing the reliability and safety factors etc.), thereby contributing to reduce production cost of the system.

The project also increases average annual power output of about 233.2 million kWh, helping to replace electricity production from fossil fuels, contributing to reduce fuel costs and reduce greenhouse gas emissions.

Speaking at the signing ceremony, Mr. Fabrice Richy - Director of AFD in Vietnam said: “AFD is proud to be the main and long-term partner of EVN. The Ialy HPP Extension Project will contribute to energy conversion to low-carbon and sustainable energy in Vietnam. This is one of the important strategies of AFD in Vietnam. The credit agreement signed today helps to promote development of renewable energy sources and continue to seeking international funding sources for EVN's strategic projects."

Also according to Mr. Fabrice Richy, AFD wishes to continue cooperating with EVN and its member units as well as other state-owned companies in Vietnam through the mode of funding without government guarantee.

Mr. Duong Quang Thanh - Chairman of EVN's Member Council said: The Ialy HPP extension Project and other expansion hydropower projects are part of EVN's green and sustainable energy development strategy. Thereby, it’s not only increased EVN's hydropower capacity, but also enhanced the sustainability and efficiency of the power system in the context of a very strong renewable energy development in Central Region of Vietnam. This AFD’s credit will help EVN to deploy the project smoothly, in compliance to the approved time schedule.

Mr. Duong Quang Thanh also highly appreciated AFD's support during more than 20 years of closely cooperation between the two groups, particularly through non-guarantee concessional loans and many valuable technical supports for EVN.

Attending and speaking at this event, Mr. Ho Sy Hung - Vice Chairman of the State Capital Management Committee at Enterprises congratulated and highly appreciated the results achieved in the cooperation relationship between EVN and AFD in particular, as well as AFD's valuable support and cooperation for projects of the Power sector in general.

Mr. Ho Sy Hung said that in the period of 2021-2030, with average economic growth rate of Vietnam as forecasted to reach about 6.5-7%/annum, which means that the growth rate of electricity load will continue at high level. With the leading role in implementation of the mission of "the power industry must be one step ahead", EVN needs to continue to deploy solutions to ensure electricity supply, in which the investment and development of new power and grid projects are absolutely essential. Therefore, capital mobilization plays an important and prerequisite role to implement projects. This shows the importance of cooperation between EVN and domestic and foreign financial institutions in general; between EVN and AFD in particular.

In the past time, with great efforts and high determination of EVN and Power Project Management Unit 2, the online bidding for the Ialy HPP Extension Project has 2 months shortened the implementation time for bidder selection. In the coming time, EVN will direct the Power Project Management Unit 2 to coordinate with contractor consortium to focus on resources, labor forces and equipment/facilities to start the project early and to complete the cofferdam construction before impoundment phase of the existing Ialy reservoir; ensuring the progress schedule and quality of the project; implementing management system of HSE (health - safety - environment), strictly complying with control procedures to minimize to social & environmental impacts during project construction.

Mr. Nguyen Xuan Nam - Deputy General Director of EVN and Mr. Fabrice Richy - Director of AFD in Vietnam performed the signing ceremony under the witness of delegates

  • 30/06/2021 02:44

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