Completion Report

Project Number: 42182-013 Loan Number: 2517 Grant Number: 0384 Technical Assistance Number: 7262 July 2019

Viet Nam: Renewable Energy Development and Network Expansion and Rehabilitation for Remote Communes Sector Project

This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

CURRENCY EQUIVALENTS

Currency unit – dong (D)

At Appraisal At Project Completion (18 February 2009 ) (31 December 2017 ) D1.00 = $0.00006 $0.000044 $1.00 = D17,490 D22,665

ABBREVIATIONS

ADB – Asian Development Bank CPC – Central Power Corporation DMF – design and monitoring framework EIRR – economic internal rate of return EMDP – ethnic minority development plan EVN – Viet nam Electricity FIRR – financial internal rate of return IEC – information, education, and communication IEE – initial environmental examination MHP – mini -hydropower plant MOIT – Ministry of Industry and Trade NGO – non-government organization NPC – Northern Power Corporation O&M – operation and maintenance OBA – output -based aid PMU – project management unit SDR – special drawing rights SPC – Southern Power Corporation TA – technical assistance WACC – weighted average cost of capital

WEIGHTS AND MEASURES

GWh – gigawatt-hour (1,000,000 kilowatt-hours) km – kilometer kWh – kilowatt -hour MV – medium voltage MW – megawatt (1,000 kilowatts ) tCO 2 – tons of carbon dioxide emission

NOTES

(i) The fiscal year (FY) of the Government of Viet Nam ends on 31 December. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2018 ends on 31 December 2018.

(ii) In this report, “$” refers to United States dollars.

Vice -President Ahmed M. Saeed , Operations 2 Director General Ramesh Subramaniam, Southeast Asia Department (SERD) Country Director Eric Sidgwick, Viet Nam Resident Mission, SERD

Team leader Au Minh Tuan, Senior Project Officer (Energy), SERD Team members Nguyen Thanh Giang, Senior Social Development Officer, SERD Do Thuy Huong, Project Analyst, SERD Luong Thi Thanh Ngan, Procurement Officer, SERD Dinh Kieu Oanh, Social Development Officer, SERD Pham Quang Phuc, Senior Environment Officer, SERD

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

CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 1 A. Project Design and Formulation 1 B. Project Outputs 3 C. Project Costs and Financing 4 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 6 G. Technical Assistance 6 H. Consultant Recruitment and Procurement 7 I. Gender Equity 8 J. Safeguards 8 K. Monitoring and Reporting 9 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness 10 C. Efficiency 11 D. Sustainability 11 E. Development Impact 12 F. Performance of the Borrower and the Executing Agency 13 G. Performance of the Asian Development Bank 13 H. Overall Assessment 13 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 14 A. Issues and Lessons 14 B. Recommendations 14

APPENDIXES

1. Design and Monitoring Framework 16 2. Project Cost at Appraisal and Actual 26 3. Project Cost by Financier 27 4. Disbursement of Asian Development Bank Loan and Grant Proceeds 29 5. Contract Awards of Asian Development Bank Loan Proceeds 30 6. Chronology of Main Events 31 7. Project Implementation Schedule 33 8. Summary of Contracts Financed by Asian development bank 35 9. Compliance with Loan and Grant Covenants 57 10. Economic and Financial Evaluation 72 11. Summary of Gender Equality Results and Achievements 79 12. Technical Assistance Completion Report 92

BASIC DATA

A. Loan and Grant Identification 1. Country Viet Nam 2. Loan and grant number, and Loan 2517-VIE/COL financing source Grant 0384-VIE/Clean Energy Fund under Clean Energy Financing Partnership Facility 3. Project title Renewable Energy Development and Network Expansion and Rehabilitation for Remote Communes Sector Project (Formerly Renewable Energy for Remote Commune) 4. Borrower Socialist Republic of Viet Nam 5. Executing agency Northern Power Corporation, Central Power Corporation, and Southern Power Corporation 6. Amount of loan and grant Loan: SDR 102,161,000 ($151.0 million equivalent) Grant: $3,000,000 7. Financing modality Project loan and grant

B. Loan and Grant Data B1. Loan 1. Appraisal Waiver 1 2. Loan negotiations – Date started 24 February 2009 – Date completed 25 February 2009 3. Date of Board approval 30 March 2009 4. Date of loan agreement 17 September 2009 5. Date of loan effectiveness – In loan agreement 16 December 2009 – Actual 21 December 2009 – Number of extensions 1 6. Project completion date – Appraisal 31 December 2015 – Actual 31 December 2017 7. Loan closing date – In loan agreement 30 June 2016 – Actual 31 December 2017 – Number of extensions 1 8. Financial closing date – Actual 22 February 2019 9. Terms of loan – Interest rate 1% per annum during grace period, 1.5% per annum during amortization period – Maturity (number of years) 32 – Grace period (number of years) 8 10. Terms of relending (if any)

1 Waiver of appraisal was approved in the management review meeting held on 5 December 2008.

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– Interest rate 6.9% for project output 1 and 3.83% for output 2 per annum in dong – Maturity (number of years) 25 years for project output 1 and 20 years for output 2 – Grace period (number of years) 5 years for project output 1 and 7 years for output 2 – Second-step borrower not applicable 11. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 4 October 2011 21 August 2018 82 months

Effective Date Financial Closing Date Time Interval 21 December 2009 22 February 2019 111 months

b. Amount (SDR million)

Revised Canceled Last Original during during Revised Amount Undisbursed Allocation Implementation Implement- Allocation Disbursed Balance Category (1) (2) ation (3) (4=1+2 –3) (5) (6 = 4–5) 1. Output 1 40.966 (11.400) 29.566 24.482 5.084 1a. NPC 24.810 (6.800) 18.010 13.684 4.326 1b. CPC 16.156 (4.600) 11.556 10.797 0.759 2. Output 2 60.444 11.400 71.844 70.555 1.299 2a. NPC 20.148 6.800 26.948 26.732 0.216 2b. SPC 20.148 4.600 20.148 19.821 0.327 2c. CPC 20.148 24.748 23.992 0.756

3. Interest and 0.751 0.751 0.751 0.00 commitment charges Total 102.161 0.00 102.161 95.777 6.384 CPC = Central Power Corporation (formerly Power Company 3 or PC3), NPC = Northern Power Corporation (Power Company 1 or PC1), SPC = Southern Power Corporation (Power Company 2 or PC2).

c. Amount ($ million)

Revised a Canceled Last Original during during Revised Amount Undisbursed Allocation Implementation Implement- Allocation Disbursed b Balance c Category (1) (2) ation (3) (4=1+2 –3) (5) (6) 1. Output 1 60.550 (17.675) 42.875 34.587 7.054 1a. NPC 36.671 (10.543) 26.127 19.101 6.002 1b. CPC 23.880 (7.132) 16.747 15.486 1.052 2. Output 2 89.340 17.675 107.015 103.864 1.803 2a. NPC 29.780 10.543 40.323 39.323 0.300 2b. SPC 29.780 29.780 29.603 0.454 2c. CPC 29.780 7.132 36.912 34.937 1.049 3. Interest and 1.110 1.110 1.108 0.00 commitment charges Total 151.000 0.00 151.000 139.558 8.857 a SDR1.0 = $1.55048 as of reallocation date of 28 Feb 2014. b Actual disbursed amounts in US dollars. c Actual undisbursed amounts in US dollar equivalent as of financial closure on 22 Feb 2019; SDR1.0 = $1.38742. Source: Asian Development Bank.

B2. Grant (additional financing)

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1. Appraisal 26 –27 February 2014 2. Grant negotiations – Date started 8 July 2015 – Date completed 9 July 2015 3. Date of Board approval 9 April 2014 4. Date of grant agreement 30 November 2015 5. Date of grant effectiveness – In grant agreement 2 March 2016 – Actual 29 April 2016 – Number of extensions 1 6. Grant completion date – Appraisal 30 June 2017 – Actual 30 June 2017 7. Grant closing date – In loan agreement 31 December 2017 – Actual 31 December 2017 – Number of extensions None 8. Financial closing date – Actual 24 May 2018 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 26 March 2018 11 May 2018 2.5 months

Effective Date Financial Closing Date Time Interval 29 April 2016 24 May 2018 25 months

b. Amount ($ million)

Last Original Revised during Canceled during Revised Amount Undisburse Allocation Implementation Implementation Allocation Disbursed d Balance Category (1) (2) (3) (4=1+2 –3) (5) (6 = 4–5) 1. Output 3 2.900 2.900 1.737 1.070 1a. NPC 0.514 0.514 0.356 0.158 1b. SPC 0.494 0.494 0.087 0.408 1c. CPC 1.891 1.891 1.294 0.504 Consultants 0. 100 0. 100 0.0 93 0. 100 Total 3.000 3.000 1.830 1.170 CPC = Central Power Corporation, NPC = Northern Power Corporation, SPC = Southern Power Corporation.

C. Project Data 1. Project cost ($ million) Cost Appraisal Estimate Actual Foreign exchange cost 40.0 24.9 Local currency cost 161.0 172.3 Total 201.0 19 7.2

2. Financing plan ($ million)

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Cost Appraisal Estimate Actual Implementation cost A. Output 1 (mini hydropower) 1. ADB financed 60.55 34.59 2. NPC financed 12.94 13.96 3. CPC financed 6.84 6.34 Subtotal (A) 80.33 54.88 B. Output 2 (grid extension) 1. ADB financed 89.34 103.86 2. NPC financed 8.95 11.80 3. SPC financed 8.95 9.57 4. CPC financed 8.95 13.70 Subtotal (B) 116.18 138.94 C. Output 3 (service connections) 1. ADB financed 3.00 1.83 2. NPC financed 0.08 0.02 3. SPC financed 0.09 0.25 4. CPC financed 0.23 0.14 Subtotal ( C) 3.4 0 2. 25 Total implementation cost Interest during construction costs 1. ADB financed 1.11 1.11 2. NPC financed 0.00 0.0 3. SPC financed 0.00 0.0 4. CPC financed 0.00 0.0 Total interest during construction cost 1.11 1.11 Total cost 201. 02 197.17 ADB = Asian Development Bank, CPC = Central Power Corporation, NPC = Northern Power Corporation, SPC = Southern Power Corporation.

3. Cost breakdown by project component ($ million) Component Appraisal Estimate Actual A. Base cost 1. Output 1 70.63 54.88 2. Output 2 101.27 138.94 3. Output 3 3.4 2.25 Subtotal (A) 175.30 196.06 B. Contingencies 24.60 0.00 C. Financial charges during implementation 1.1 1 1.1 Total (A+B +C ) 201. 02 197.17

4. Project schedule

Item Appraisal Estimate Actual Date of first contract with consultants NA 23 Jul 2010 Construction supervision consultant 31 Dec 2017 Independent monitoring consultant NA NA Completion of technical design NA 2013-2014 Civil works contracts Date of first contract award Q1 2011 20 Jul 2011 Date of last contract award Q1 2011 31 Aug 2017 Completion of works Q1 2011 2016-2017 Equipment and supplies contracts Date of first procurement Q1 2011 15 Sep 2011 Date of last procurement Q1 2011 10 Feb 2015 Completion of equipment installation Q1 2011 2016-2017 Other milestones Commissioning Q1 2015 2016-2018 Project completion date Q4 2015 31 Dec 2017 NA = not applicable, Q = quarter. 5. Project performance report ratings

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Rating s Implementation Period Development Objectives Implementation Progress From 31 March 2009 to 31 December 2009 Satisfactory Satisfactory From 1 January 2010 to 31 December 2010 Satisfactory Satisfactory From 1 January 2011 to 31 December 2011 Potential problem From 1 January 2012 to 31 December 2012 On track From 1 January 2013 to 31 December 2013 On track From 1 January 2014 to 31 December 2014 On track From 1 January 2015 to 31 December 2015 On track From 1 January 2016 to 31 December 2016 On track From 1 January 2017 to 31 December 2017 On track Source: Asian Development Bank.

D. Data on Asian Development Bank Missions No. of No. of Person- Specialization of Name of Mission Date Persons Days Members Fact finding mission 12–18 Nov 2008 6 42 a, b, c, h, l, k Loan review mission 1 9–16 Nov 2009 5 40 a, e, i Loan and TA review mission 2 30 Nov–3 Dec 2010 4 20 a, d, e, i Loan and TA review mission 3 20–24 Jun 2011 7 35 a, d, e, i, m

Special project administration and TA 1–10 Feb 2012 8 80 a, b, i, g, e, d, m Loan review mission 4 9–18 Jul 2012 8 80 a, g, e, b, d, i

Project midterm review and TA review 7–18 Mar 2013 8 96 a, b, d, e, I, k mission 5 Loan review mission 6 1–12 Nov 2013 4 48 a, d, e, f, m Appraisal of additional co-financing for 26–27 Feb 2014 2 4 a, b, m output-based aid program

Loan and TA review mission 7 25 Aug–12 Sep 2014 6 18 a, d, e, i, g, m, p. Special project administration mission 20–25 Oct 2014 1 5 a, m Loan and TA review mission 8 1–11 Dec 2014 4 44 a, b, d, e, m Component 1 site visit 25 Feb–6 Mar 2015 m Loan and TA review mission 9 30 Mar–9 Apr 2015 3 30 a, d, e, m Component 1 site visit 13–24 Jul 2015 11 m Safeguard review mission 1 4–15 Sep 2015 4 36 a, d, e, i, m Mission by ADB Office of Auditor General 2–6 Nov 2015 2 10 n, o Loan and TA review mission 10 1–12 Dec 2015 4 48 a, b, d, e, i Component 1 site visit 29 Feb–18 Mar 2016 18 m Loan and TA review mission 11 30 May–4 Jun, 4–15 Jul 3 48 a, e, h, m and 10 Aug 2016

Component 1 site visit 19–30 Sep 2016 m Loan and TA review mission 12 5–14 Dec 2016 4 36 a, i, e, d, m Loan and TA review mission 13 7–16 Mar 2017 4 36 a, i, d, e, m Component 1 site visit 12–21 Jun 2017 m Loan and TA review mission 14 5–22 Sep 2017 4 52 a, i, d, e, m Loan and TA review mission 15 4–13 Dec 2017 3 27 a, i, e, m Loan and TA review mission 16 29 Nov–9 Dec 2017 2 18 a, i, d, e, m Project completion review mission 7–18 Jan 2019 5 50 a, d, e, f, i, m

a = mission leader (energy specialist or energy economist or senior project officer); ADB = Asian Development Bank, b = infrastructure specialist, energy officer, and/or energy specialist; c = counsel, d = safeguards specialist (environment), e = safeguards specialist (resettlement); f = social development specialist (gender); g = procurement specialist, h = financial specialist; i = project analyst; k = operations assistant, l = information technology specialist, m = staff consultant, TA = technical assistance.

I. PROJECT DESCRIPTION

1. In 2007, over 97% of Viet Nam’s communes were connected to the national grid. However, 278 communes were unconnected, and some were classified as electrified but received power only to the commune center. Moreover, the low voltage system—previously the responsibility of provincial and district governments rather than Viet Nam Electricity (EVN)—was poorly constructed and unreliable in some poor rural areas. The Government of Viet Nam decided to transfer the development of low voltage networks to EVN to expedite the electrification of remote parts of the country mainly populated by poor and vulnerable ethnic minorities.

2. To help EVN undertake these tasks, on 30 March 2009 the Asian Development Bank (ADB) approved Loan 2517-VIE Renewable Energy Development and Network Expansion and Rehabilitation for Remote Communes Sector Project.1 The project’s primary objective was rural electrification to promote the use of renewable energy and distributed energy resources to provide electricity to ethnic minority communities in remote and poor parts of the country. The project’s impact was to promote pro-poor, balanced economic development of remote, mountainous, and poor communes through the sustainable use of electricity and renewable energy in an affordable manner. The outcome of the project was the provision of reliable and affordable electricity to remote, mountainous, and poor communes.

3. As designed, the project consisted of two outputs. Output 1 was to develop 5–10 grid- connected run-of-river mini-hydropower plants (MHPs) with up to 7.5 megawatt (MW) capacity each, totaling 30 MW in northern and central Viet Nam. Electricity from these MHPs would displace more expensive non-grid electricity sources (diesel generating sets) and improve reliability of supply in these remote provinces. Output 2 was to electrify 1,000 villages through expanding the grid and rehabilitating the poorly-constructed low voltage networks serving approximately 100,000 poor households.

4. In conjunction with Loan 2517-VIE, ADB simultaneously approved advisory technical assistance (TA) to help implement the project and complement the project’s outputs. 2 Based on the original project design, in April 2014 ADB further approved administration of a $3 million grant as additional financing to support the project through an additional output 3: poor and vulnerable families in the project areas connected to the expanded electricity grid.3 The grant was financed by the Clean Energy Fund under the Clean Energy Financing Partnership Facility.4

II. DESIGN AND IMPLEMENTATION

A. Project Design and Formulation

5. At appraisal and completion, the project was consistent with Viet Nam’s Socio-Economic Development Plans and ADB’s country strategy and program for Viet Nam.5 Both aimed to

1 ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Socialist Republic of Viet Nam: Renewable Energy Development and Network Expansion and Rehabilitation for Remote Communes Sector Project. Manila. 2 ADB. 2009. Technical Assistance 7262-VIE: Capacity Building of Renewable Energy Development . Manila. 3 ADB. 2014. Grant 0384-VIE: Additional financing to Loan 2517-VIE . Manila. 4 The financing partners were the governments of Australia, Norway, Spain, Sweden, and the United Kingdom. 5 The Government of Viet Nam. 2006. Socio-Economic Development Plan 2006–2010 . Ha Noi; The Government of Viet Nam. 2016. Socio-Economic Development Plan 2016–2020 . Ha Noi; ADB. 2007. Country Strategy and Program for Viet Nam, 2007–2010 . Manila; ADB. 2016. Country Partnership Strategy: Viet Nam, 2016–2020 . Manila.

2 promote inclusive pro-poor economic growth by investing in rural infrastructure to remove development barriers in poorer regions of the country and encourage environmentally sustainable investments. The project was well aligned with ADB’s Energy Policy and addressed its three pillars: (i) promoting energy efficiency and renewable energy; (ii) maximizing access to energy for all; and (iii) promoting energy sector reform, capacity building, and governance toward achieving ADB’s vision of a region free of poverty. 6

6. The project design combined electrifying remote areas with developing MHPs large enough to generate a sustainable operating cash flow to operate and maintain the plants. 7 The design designated power companies as executing agencies to ensure adequate technical expertise and support for operation and maintenance (O&M) and the participation of provincial subsidiaries with mandate to operate the MHPs.

7. The project had four special features.

(i) Cost recovery of power supply to difficult areas . The power companies recovered costs by sharing the cost of grid expansion with MHPs and using revenues from electricity sales of these plants to subsidize expansion of the grid to communities.

(ii) Clean development mechanism. The MHPs are run-of-river generators and do not emit methane. The MHPs also help reduce grid loss because they are located close to demand centers at the end of relatively long and weak transmission systems. Moreover, the MHPs add generation capacity that augments grid supply for use elsewhere and displaces thermal generation at the national level.

(iii) Pro-poor geographic targeting. At the sites of the MHPs and grid expansion subprojects, at least 50% of households receiving electricity through a subproject had income levels below the national poverty rate.8

(iv) Promotion of productive energy use and income generation activities . TA activities were designed to build the capacity of poor households to use electricity efficiently and support their access to microfinance credit to generate income and improve their livelihoods.

8. The grant was designed to subsidize service connections using the output-based aid (OBA) mechanism—a hybrid instrument used for the first time by ADB and the power companies for vulnerable households, who were estimated to be approximately 50% of project beneficiaries. 9 The grant provided retroactive financing of up to 20% of the grant amount for eligible expenditures incurred not earlier than 12 months before the grant agreement was signed.10

6 ADB. 2009. Energy Policy of the Asian Development Bank . Manila. 7 There was no project preparatory technical assistance. ADB staff and staff consultants prepared project documents. 8 The national poverty rate was less than D200,000 ($13) per month at appraisal. 9 An output-based aid mechanism is a techno-financial instrument to increase access to services such as water, energy, health, and sanitation for poor and vulnerable households in developing countries. It uses a results-based approach, where service providers or other financing institutions pre-finance the requirements and the costs are reimbursed using grant financing after verification of the delivered outputs. Vulnerable households were either below the poverty line, in danger of falling into poverty, female-headed, disabled or invalid, elderly, suffering from chronic illness, or an ethnic minority. 10 The grant agreement was signed by ADB and the Government of Viet Nam on 30 November 2015.

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9. The project was appropriately formulated as a sector loan with one core MHP and two rural electrification subprojects approved at appraisal, and additional noncore subprojects identified during implementation. Subproject selection criteria ensured sound financial and economic rates of return (for MHPs only), while focusing on poor and remote parts of the country inhabited by ethnic minorities. The project scope remained unchanged during project implementation.

10. The overall implementation responsibility of the loan and grant lay with the Ministry of Industry and Trade (MOIT) and EVN, whereas the investments were executed by the regional power companies, Northern Power Corporation (NPC), Central Power Corporation (CPC), and Southern Power Corporation (SPC).11

B. Project Outputs

11. The project design and monitoring framework was updated after ADB’s approval of additional financing (footnote 3) in 2014 to reflect the output indicators relevant to the grant financing. At completion, the project substantially achieved the targets of output 1 and achieved the targets of outputs 2 and 3 (Appendix 1).

12. Output 1: Installation of 5–10 mini-hydropower plants to electrify mountainous communes. At appraisal, it was expected that this output would add generation capacity of over 30 MW to the national grid system, extend the medium voltage (MV) power network in remote areas by 50–100 kilometers (km), extend the low voltage network by about 75–100 km, and provide electricity to an additional 25–50 villages and 3,000–5,000 households from development of the MHPs.

13. The project developed five MHPs with total capacity of 32.5 MW, including three MHPs in the northern region (Nam Nghe, 7.5 MW; Nam Pay, 7.5 MW; and So Vin, 2.8 MW) and two in the central region (A Roang, 7.2 MW; and Dak Pring, 7.5 MW). At completion, 25 MW was operating and the remaining 7.5 MW from Nam Pay MHP is expected to start in December 2019.

14. The Nam Pay MHP is 90% completed with electro-mechanical equipment on site in 2017 and the dam, tunnel, and penstock completed in 2018. The remaining works consist of constructing the powerhouse, which is 75% completed, and installing and commissioning electro- mechanical equipment. Completion of this MHP was delayed because (i) local households sporadically blocked access to the construction site during mid-2016 and mid-2017 because of disputes on compensation and livelihoods affected by construction and (ii) the civil works contractor responsible for constructing the powerhouse performed poorly. The project resolved the access blockage after paying additional compensation to affected households in the first half of 2017 and is resolving the poor performance by engaging a new contractor.

15. In addition developing five MHPs, the project extended the medium voltage network by 51 km and the low voltage network by 19.6 km and provided a total of 36 villages and 8,767 households with electricity supply from the national grid, including 827 households which gained access to electricity for the first time.

16. Output 2: Electrification of 1,000 villages through grid expansion. Output 2 was expected to extend the government’s special program of rural electrification to four provinces

11 In 2010, Power Companies 1, 2, 3 were reorganized and changed their names respectively to Northern Power Corporation (NPC), Southern Power Corporation (SPC), and Central Power Corporation (CPC) as a part of the restructuring of the electricity sector by the government.

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(Dien Bien and Lau Chau in the north and Soc Trang and Tra Vinh in the south) and extend and rehabilitate electricity networks in remote, mountainous, and poor areas in other provinces in Viet Nam. The financing was to cover (i) expanding the rural network to connect villages with no access to electricity and rehabilitate poorly-constructed low voltage networks and (ii) subsidizing service connections (from downstream of the power meter to the house, including in-house wiring, 1 power socket, and 1 light fitting) of households who received electricity from the project under the government’s special program scheme.

17. At completion, the project achieved output 2 and surpassed its targets, with 2,138 km of medium voltage network and 6,916 km of low voltage network extended or rehabilitated and 115.6 megavolt-amperes of medium and low voltage substation capacity installed, covering 300,034 households in 3,133 villages of 13 remote and mountainous provinces; of these households, 202,538 (67.5%) are poor and 159,845 were provided with new electricity connections. The households consume about 6 gigawatt-hours (GWh) of electricity per year for income generating activities.

18. Output 3: Connection to the expanded electricity grid for poor and vulnerable families . Output 3 was expected to provide free service connections to a minimum 48,333 vulnerable households who were not covered under the government’s special program. At completion, a total of 142,572 households received subsidized service connections, including 88,707 households covered under the loan following the government’s special program and 53,865 households under the grant using the OBA mechanism (footnote 9).

C. Project Costs and Financing

19. ADB provided the loan of SDR102.2 million ($151 million equivalent at appraisal) to the government, which in turn re-lent SDR41.0 million ($60.5 million) allocated under output 1 to the NPC and CPC to develop the MHPs, and distributed SDR 60.4 million ($89.3 million) under output 2 in equal amounts to CPC on an on-lend basis and to NPC and SPC on an on-grant basis for grid expansion.12 After re-estimating the costs of the MHPs in 2014, the surplus SDR 11.4 million ($17.6 million) from output 1 was reallocated to output 2 at the request of the government, which then re-lent SDR6.8 million ($10.5 million) to the NPC and SDR4.6 million ($7.1 million) to the CPC to implement additional subprojects under output 2.

20. At appraisal, the total project cost was estimated at $197.6 million, including (i) $151 million equivalent (76.4%) to be financed from the ADB loan for procurement of equipment and civil works including taxes, and financial charges to ADB loan; and (ii) $46.6 million (23.6%) counterpart funds from the power companies for resettlement expenses and project management costs. During implementation, additional financing of $3.4 million, including a $3 million grant from Clean Energy Fund under the Clean Energy Financing Partnership Facility and $0.4 million counterpart funds subsidized the service connections to poor households. This led to a total estimated project cost of $201.02 million, including $154 million (76.6%) to be financed by ADB and $47.02 million (23.4%) by the power companies. At completion, the total cost was $197.17 million, lower than the estimated cost by $3.85 million (1.9%). ADB financed $139.56 million (70.8% of total cost), the Clean Energy Fund under the Clean Energy Financing Partnership Facility financed $1.83 million (0.9%), and the power companies contributed $55.78 million (28.3%). The cost breakdown by project component and cost category is in Appendix 2. The project financing plan is summarized in Appendix 3.

12 Under output 1, SDR24.81 million went to the NPC and SDR16.156 million to CPC. Under output 2, SDR20.148 million each went to the NPC, CPC, and SPC.

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21. Grant utilization was lower than expected due to (i) delays in grant negotiation, signing, and effectiveness due to the first-time use of the OBA mechanism by ADB and the government, resulting in some expenditures not being eligible for retroactive financing from the grant proceeds and needing to be borne by the power companies; and (ii) a lower cost of the service connection per household than initially estimated. Specifically, at appraisal, the cost of service connections was estimated at $66 per household, implying a total cost of $3.4 million including $0.1 million required for an independent consultant to verify expenditures, technical specifications, and eligibility of households; at completion, the actual average cost per household was only $45.5, and a total of $2.25 million was spent, including $0.09 million for independent verification.

D. Disbursements

22. Disbursements were consistent with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). The power companies established, managed, replenished, and liquidated four project advance accounts: one each for the CPC and SPC, and two for the NPC to separate fund flows for outputs 1 and 2. In 2016, the ceiling of project advance accounts was removed, and the ceiling of the statement of expenditure was increased from an initial $100,000 to $200,000 to facilitate disbursement. After the increase, disbursement was faster as payments were made through project advance accounts, except for direct payment for imported equipment. The arrangement facilitated smoother project implementation, with no irregularities reported in audited project financial statements.

23. ADB disbursed a total of $141.39 million, including $139.56 million (94% of loan amount at completion) from its Asian Development Fund and $1.83 million (61% of net grant amount) from the Clean Energy Fund under the Clean Energy Financing Partnership Facility. At financial closure, ADB cancelled $8.86 million (5.97%) of the loan amount and $1.17 million (39%) of the grant amount.

24. Loan disbursement schedules were realistic but actual disbursement slightly slower than envisaged because of the delays in preparing feasibility studies and the technical design of some MHPs. There were some delays in allocating counterpart funds for land acquisition, safeguards mitigation measures, and project implementation support services in initial years. In 2012, the situation improved when construction of MHPs began. Appendixes 4 and 5 show the disbursement and contract awards schedules at project appraisal and completion.

E. Project Schedule

25. The loan was approved by ADB’s Board of Directors in March 2009, signed by the borrower in September 2009, declared effective in December 2009, and started implementation in 2010. Project completion, originally planned for 30 June 2016, was delayed by 18 months mainly because of (i) poor performance of the consulting firm engaged under the TA (para. 32); (ii) slow preparation of detailed technical design and bidding documents for the MHPs; (ii) rebidding of some power plant equipment and major civil works packages; and (iv) unexpected unstable geotechnical conditions found during construction of some MHPs. Among the MHPs, three were completed before the extended loan closing date, one was completed in June 2018, and the remaining one is expected to be completed by December 2019. Output 2 was implemented in phases with a total of 26 subprojects. Activities in each phase comprised identifying and selecting subprojects, preparing feasibility studies and technical design, procurement, and implementation. As of the loan closing date, all activities under output 2 were

6 completed. The main project processing and implementation events are in Appendix 6. Detailed project schedules at appraisal and as implemented are in Appendix 7.

26. The project closed financially in February 2019, 14 months after the extended loan closing date, because of delays in liquidating the project’s advance funds. The delays occurred mainly because the NPC and CPC needed time to process payments for MHP expenditures incurred in late 2017. The grant was physically completed as scheduled on 31 December 2017, and financially closed on 24 May 2018.

F. Implementation Arrangements

27. The government delegated to MOIT the authority to approve communes to be included under output 2 and to EVN the authority to approve the feasibility study and technical design of output 1 and 2 subprojects. The power companies were the executing agencies and their power network project management units (PMUs) and provincial subsidiaries were the implementing agencies. The implementation arrangement involved local committees of project provinces, which participated in subproject selection and implementation to ensure that the benefits of electrification reached poor and vulnerable segments of society.

28. The power companies, PMUs, and their provincial subsidiaries have extensive experience in project management and construction supervision, and they were able to adopt ADB guidelines and requirements on procurement and social and environmental safeguards. Directly or through the PMUs and provincial subsidiaries, the power companies recruited national consultants to prepare the feasibility studies, technical design, and safeguards documents. A consulting firm initially supported project implementation. However, due to poor performance, the project replaced the consulting firm with individual international and national consultants in early 2013.

29. The implementation arrangements were adequate and generated strong ownership. There were no major changes. Minor changes to expedite project implementation included (i) an increase in the ceiling of the statement of expenditures procedure to facilitate disbursement and (ii) an increase in the threshold of average investment cost per household to $2,000 to accommodate price escalations in 2009–2011.13 The government’s restructuring of the power sector in 2010 (footnote 11) did not materially affect the implementation arrangements.

G. Technical Assistance

30. The TA consisted of three activities to: (i) prepare a renewable energy law and decrees to promote renewable energy development, which was later changed to support implementation of Viet Nam’s market-oriented power sector reforms; (ii) build the capacity of the executing agencies to plan, implement, and operate sustainable mini-hydropower; and (iii) promote productive use of energy and income generating activities for people in remote areas receiving electricity under the project.

31. The TA is rated successful as it helped achieve the project’s outcome. The activities under the TA outputs helped to enhance the capacity of the power companies and PMUs in mini- hydropower development, helping result in successful MHP development under the project. The TA also helped improve livelihoods of ethnic minority people by promoting productive use of electricity to generate income (Appendix 12).

13 Viet Nam’s inflation rates between 2009 –2011 were 12.62% in 2009, 11.75% in 2010, 18.13% in 2011, according to data from the Viet Nam General Statistics Office.

7

H. Consultant Recruitment and Procurement

32. Consultant recruitment. The project recruited international and national consultants in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). In 2010, the project recruited a consulting firm to provide 110 person-months of services in two phases: (i) in pre-construction, to help identify noncore MHPs subprojects and prepare project documents; and (ii) to supervise construction and commissioning of selected MHPs. ADB agreed with the power companies’ recommendation to cancel the contract in December 2012 because of the firm’s poor performance during pre-construction. Thereafter, the project engaged several international and national individual consultants to help implement the project, including monitoring implementation of social and environmental safeguards plans. The consulting firm’s performance was unsatisfactory given the poor quality and considerable delays of the firm’s deliverables, which caused delays in the construction of the MHPs. The individual consultants’ performance was satisfactory.

33. The project engaged a national nongovernment organization (NGO) under the TA during August 2015–December 2017 to assist people receiving electricity under the project to develop income generating activities using electricity and to help them access microfinance for such activities. The performance of the NGO was satisfactory.

34. Procurement. The project included a large number of contracts and decentralized arrangements for procurement. A total of 292 contracts used international competitive bidding for some large equipment contracts and national competitive bidding for small goods and all civil works contracts (Appendix 8). All ADB-financed works and goods were procured in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time).

35. At the beginning of project implementation, the power companies and PMUs had difficulty following ADB procurement procedures in terms of setting qualification criteria and other bid data, and there were delays in submitting draft bidding documents and bid evaluation reports for ADB review and approval. The project typically involved procurement of many small value packages, especially those under output 2 for grid expansion and rehabilitation, which were not attractive to large contractors because the works were scattered in remote and mountainous areas and were more suited to local, smaller contractors. This initially led to delays in procurement processing. The situation improved as the power companies and PMUs learned from their experience and with ADB support. ADB conducted a procurement review for effective implementation for the project in 2012. Following the review, the power companies and PMUs increased the size of civil works contracts, improved the quality of procurement documents, and spent less time on procurement processes. The performance of contractors and suppliers was generally satisfactory, except some contractors caused delays in completing Nam Pay MHP and terminating some contracts under output 2 due to poor performance.

36. Overall, the original contract award projections were not realistic. For the loan, the actual contract awards ($138.45 million) were only 88.7% of the projection ($156.17 million) because of lower contract prices and exchange rate fluctuations between special drawing rights (SDR) and US dollars that caused a lower loan amount in US dollar equivalent terms than the amount at appraisal. The project was completed two years behind original schedule because of delays in procurement and rebidding for some packages of MHP subprojects. For the grant, only $1.83 million or 61% of the projection was awarded, mostly because of delays in declaring grant effectiveness. The executing agencies’ contract management was satisfactory; they addressed

8 contractual issues constructively and amicably with contractors, and made contract variations in accordance with project implementation requirements and in an effective manner.

I. Gender Equity

37. The project was categorized as effective gender mainstreaming based on the gender strategy prepared at appraisal. Following the gender strategy, the project integrated gender mainstreaming activities in ethnic minority development plans (EMDPs) for each subproject, focusing on: (i) increasing gender mainstreaming capacity of the power companies and PMUs; (ii) increasing participation of poor women, members of women-headed households, and ethnic minority women in campaigns on raising awareness of safe electricity use; (iii) ensuring free electricity connections for poor, women-headed households; (iv) increasing women’s representation in planning, implementing, and monitoring project activities; (v) increasing awareness among local people about preventing HIV/AIDS and human trafficking risks; and (vi) enhancing income opportunities through the use of processing machines and lights for agricultural inputs and shops, together with facilitating women’s access to microfinance.

38. The EDMP implementation is rated satisfactory with one target achieved and 12 out of 14 actions completed, equal to 85.7% of actions (Appendix 11). The project provided both strategic and practical benefits to poor people, women, and ethnic groups. The project provided improved or new electricity connections to 300,034 households, including 202,207 poor households, and a free service connection to 100% of 12,672 woman-headed households, which resulted in women’s reduced time poverty.

J. Safeguards

39. Environmental safeguards. The project was classified as category B for environment. At appraisal, the power companies prepared the environment assessment and review framework in accordance with ADB’s Environment Policy (2002) and Environment Assessment Guideline (2003). During implementation, the power companies prepared rapid environment assessments for each proposed subproject based on the environment assessment and review framework and submitted them to ADB for screening and confirming the environment category. The power companies then prepared initial environmental examinations (IEEs) for all proposed MHP subprojects to address potential impacts and disclosed all IEEs on the ADB website in accordance with ADB’s Safeguard Policy Statement (2009).14

40. Hydrological baseline data - collected through official monitoring data, along with 1 year of data generated by the power companies - was the basis for the design of MHP dam outlets to release minimum flows to maintain aqua ecosystems between the dam and powerhouse. Water use permits incorporating minimum flow requirements were granted to four completed MHPs following the government’s Decree no. 112/2008/ND-CP.15 Despite insufficient baseline data on forest biodiversity in the IEEs, the power companies made payments to the provincial forest protection and development funds for reforestation, which was monitored by the power companies, to compensate for the small forest areas cleared by the project construction. Compensation followed the government’s Circular no. 23/2017/TT-BNNPTNT.16

14 ADB. 2009. Safeguard Policy Statement 2009 . Manila. 15 The Government of Viet Nam. 2008. Decree 112/2008//ND-CP: Management, Protection and Integrated Exploration of Resources and Environment of Hydropower and Irrigation Reservoirs. Ha Noi. A similar water use permit is expected to be granted for Nam Pay MHP before it commences operation. 16 The Government of Viet Nam. 2017. Circular 23/2017/TT-BNNPTNT: Regulations on Reforestation Upon Converting Forest Land to Use for Other Purposes . Ha Noi.

9

41. During construction, the power companies established environmental management systems within each power company and their PMUs to support and supervise environmental management plan implementation. Besides the environment safeguard training conducted by the environment consultant, ADB also conducted two training sessions to strengthen the power companies, PMUs, and relevant stakeholders capacity to implement environment management plans with specialization in MHPs. The construction supervision consultants conducted daily environmental supervision. The power companies conducted environment samplings for the semiannual environment monitoring report for each of the MHP construction works and disclosed the reports on ADB’s website. At project completion, all five MHP PMUs confirmed that there are no outstanding environment claims.

42. Social safeguards. At appraisal, the project was classified as category B for involuntary resettlement and category A for indigenous peoples. During implementation, the project was re- classified as category B for indigenous peoples because the adverse impacts of the subprojects on ethnic minority people were found to be limited to minor land and crop losses. Following the project’s resettlement framework, the power companies developed resettlement plans or resettlement and ethnic minority development plans for each of the subprojects. The project acquired 1.8 million square meters of land for output 1, affecting 647 households, including 10 severely affected households and 120 households belonging to vulnerable groups, resulting in D40.7 billion in compensation and assistance. 55,842 households were affected under output 2, none severely. Output 2 acquired 0.4 million square meters of land and paid D125.9 billion in compensation and assistance.

43. Social safeguard documents ensured that affected people participated in project activities throughout the project cycle. Each power company established a grievance redress mechanism, disclosed it to affected people, and implemented it. NPC received some complaints and requests for additional compensation for losses of land, and some local households blocked access to the Nam Pay MHP site during construction. NPC settled the issue by paying additional compensation. Though some compensation issues contributed to delays in completing some MHPs, in general, social safeguards were implemented satisfactorily. At project completion, there were no outstanding complaints. Living conditions of local people, including ethnic minority people, improved because of electricity access and improved livelihood opportunities.

K. Monitoring and Reporting

44. The loan and grant agreements and project agreement contained covenants in two main categories: project implementation and financial and other matters. At completion, most loan and grant covenants were complied with (Appendix 9), except for some project and financial covenants outlined below:

(i) Audited project financial statements reports for fiscal years 2009–2011 were not furnished to ADB. Since 2012, the project accounts were audited on a year-on-year basis and timely reports were submitted to ADB until project completion in 2017. The reports were in order and the unqualified auditing opinions were acceptable.

(ii) EVN was in breach of the debt–service coverage ratio during 2009–2015 and in breach of its self-financing ratio and debt–equity ratio in some years. These breaches resulted largely from low rainfall that caused a temporary shift away from lower-cost hydropower towards more expensive thermal power production, a substantial

10

devaluation of the dong against EVN’s major borrowing currencies (the US dollar and yen), and tariffs that did not cover the full cost of providing power.

45. Overall, project financial management systems and arrangements provided adequate assurance that project funds were used for intended purposes. Noncompliant issues on financial covenants did not significantly affect achievement of the project outcome and outputs. Overall, ADB’s assessment of the power companies’ financial management capabilities at fact-finding was reasonable.

46. In the early stages of project implementation, quarterly progress reports submitted to ADB contained insufficient information and data. Since 2014, the ADB project team introduced a comprehensive template and facilitated a workshop on preparing progress reports, which improved reporting overall. Semi-annual monitoring reports on social and environmental safeguards were also not sufficiently detailed at the beginning of project implementation but improved after ADB provided guidance on monitoring progress and improving the quality of the reports.

III. EVALUATION OF PERFORMANCE

A. Relevance

47. The project is rated relevant . At appraisal, it was aligned with government and ADB objectives to achieve universal access to electricity and to improve the efficiency and reliability of electricity supply to support socioeconomic development. The project provides affordable and reliable electricity to people in remote areas of Viet Nam. The use of the sector modality, with the flexibility to select and prepare priority subprojects, helped to target remote and poor communities across a wide geographical area. The sector loan also provided the flexibility to cope with delays caused by difficulties in project implementation at scattered and remote areas; limited capacity of the power companies to prepare and implement the MHPs; government approval procedures; foreign exchange fluctuations; and the limited capacity of local suppliers and contractors. The associated TA and the grant were key contributors to achieving the project outcome and outputs.

48. At completion, the project remained relevant to (i) government goals to achieve universal access to electricity and improve the efficiency and reliability of electricity supply, which continue as priorities in the national power development master plan for 2011–2020 with vision to 2030; and (ii) ADB’s energy sector assessment, strategy, and roadmap for Viet Nam, particularly creating livelihood opportunities for remote and rural people by expanding rural electricity networks and enhancing energy efficiency through rehabilitating aging assets, and mitigating climate change through developing renewable energy, and reducing transmission and distribution losses. 17 The project effectively achieved ADB and government targets to realize last mile electricity connections in remote, mountainous, sparsely populated areas, where the poorest of the poor, deprived women, and other marginally disadvantaged people were living.

B. Effectiveness

49. The project is rated effective . It substantially achieved its intended outcome with four out of five project outcome targets surpassed (Appendix 1) and one outcome target -100 GWh of

17 The Government of Viet Nam. 2011. Decision 1208/QD-TTg: Approval for National Power Development for 2011- 2020 with vision to 2030 (PDP VI) . Ha Noi; The Government of Viet Nam. 2016. Decision 428/QD-TTg: Approval for Revision to Power Development Plan (PDP VII Revised). Ha Noi; ADB. 2015. Viet Nam: Energy Sector Assessment, Strategy, and Roadmap . Manila.

11 energy generated annually and 125,000 tons of annual greenhouse gas emissions abated by 2016 - is considered substantially achieved given that, at project completion, the four commissioned MHPs generate 95.7 GWh of renewable energy per year and annually abate 55,177 tons of greenhouse gas emissions (Note A.1, Appendix 1). When the last MHP is completed, expected in December 2019, the five MHPs will generate 122.4 GWh of renewable electricity per year, reducing 70,532 tons of greenhouse gas emissions per year.

50. Implementation of the gender strategy and EMDPs helped achieve the project outcome, which aimed to provide electricity to 75% of women-headed households in targeted communes. At project completion, 12,672 households or 100% of women-headed households in the targeted communes gained access to the national grid, including free service connections. Moreover, the project built the capacity of women to use electricity for productive activities and provided women with access to credit , enabling them to improve incomes.

C. Efficiency

51. The project is rated efficient . The economic internal rates of return (EIRRs) were recalculated for each MHP and confirmed substantial economic benefits at subproject appraisal. Though not all the ex-post EIRRs (Table 1) exceed the target rate of 12%, the EIRRs are in aggregate reasonable, especially in the context of providing renewable electricity generation in remote mountainous areas and connecting relatively poor and low density households to the grid (Appendix 10).

Table 1: EIRRs of Mini-Hydropower Plants at Appraisal and at Completion Nam Nghe Nam Pay So Vin A Roang Dak Pring Ex ante (%) 11.59 14.62 11.94 16.9 0 18.82 Ex post (%) 10.4 0 9. 35 23.7 2 16. 46 17. 69

52. At appraisal, no EIRR was estimated for output 2. At completion, an EIRR of 18.9% has been estimated for this output (Appendix 10). Output 2 process efficiency was satisfactory because of actions taken during implementation, including: (i) optimizing technical design and specifications, resulting in lower investment costs; and (ii) lower contract prices due to improvements in procurement efficiency (para. 35).

53. The project contributed significantly to rural electrification in the remote mountain areas in the north and central regions, as well as poor parts of the Mekong Delta region. At appraisal, the provincial rate of household electrification in targeted provinces was between 36% and 97.3%. At completion, the household electrification rates in participating provinces reached 96.8% on average, varying between 87.2% and 100% (Table A1.3, Appendix 1).

D. Sustainability

54. The project is assessed likely sustainable . At appraisal, the financial internal rates of return (FIRRs) estimated for the core Nam Nghe MHP subproject and other MHPs during project implementation comfortably exceeded their weighted average cost of capital (WACC). At completion, reevaluated FIRRs remained above the WACCs, except with Nam Pay MHP, where the FIRR is 4.5% against a WACC of 5.1%, based on the assumption that the Nam Pay will start operation from 2020. Nam Pay’s FIRR at project completion is lower than its WACC because (i) the construction period, now extended beyond the loan closing date, necessitated a higher proportion of project costs funded from counterpart equity funds and a higher cost of counterpart equity funds compared to ADB loan financing; (ii) construction delays caused a comparatively

12 high revised capital cost compared to total GWhs generated; and (iii) the higher interest rates (Appendix 10).

55. The power companies, whose staff have substantial experience in the O&M of electricity networks and the MHPs, operate and maintain the project assets. The project facilities visited during the project completion mission were well maintained and in good condition, with regular O&M scheduled. The power companies hold annual O&M staff training programs for regular repairs and special maintenance, underpinning sustainable operation of these assets. The likelihood that the project outcome and outputs will be maintained over the economic life of the project is high.

E. Development Impact

56. Overall, the development impact of the project is assessed satisfactory, considering the project’s significant positive economic, poverty, and social impacts and achievements. The impact target was achieved in 2017, 3 years earlier than indicated the design and monitoring framework (Appendix 1; paras. 11–18).

57. Economic impacts. The economic impacts of the project are positive, with the five MHPs expected to achieve satisfactory EIRRs. In addition, the project has improved the economic and social well-being of households (including poor persons and ethnic minorities) in remote and mountainous regions in Viet Nam by providing more reliable grid-supplied electricity to households in these areas, exceeding the targeted number of households.

58. Poverty alleviation and social aspects . Poverty alleviation and social aspects are assessed from the perspective of tariff reform and affordability of electricity. Gradually increasing tariffs—to cover the costs associated with expanding power generation and transmission and distribution networks—increases the basic cost of living and disproportionately reduces disposable income for lower income groups. However, the cost of electricity in the project area remains affordable. For rural households, the first 50 kilowatt-hour (kWh) block is priced at 75% of the national average tariff (D1,403 or $0.062 per kWh), the second block of 51–100 kWh at 78% (D1,459 or $0.064), and the third block of 101–200 kWh at 85% (D1,590 or $0.070).18 Any usage over 200 kWh is priced at the national average tariff. Poor households and those eligible for social welfare who use under 50 kWh of electricity per month receive monthly cash subsidies to cover the first 30 kWh.19

59. The project helped expand access to electricity in targeted provinces, increasing the percentage of household electrification from 83.5% at appraisal to 96.8% at completion. A survey, conducted with independent verification for additional grant financing, found that electricity is affordable for households. Electricity costs average 6.54% of household monthly expenditures.

60. Gender impacts . The project contributed to key gender equity objectives including (i) extensive participation of 44,479 women (43.7% of participants) in project activities, (ii) ensuring fair representation of two women in information, education and communication (IEC) activities as targeted in the gender strategy and making conscious efforts to address women’s concerns, (iii) mandating equal compensation and entitlements for women and men, and (iv) facilitating access

18 The Government of Viet Nam. 2019. Decision No. 648/QD-BCT: Adjustment of Average Electricity Retail Price . Ha Noi. 19 The Government of Viet Nam. 2014. Decision 28/2014/QD-TTg: Regulations on Structure of Electricity Retail Tariff . Ha Noi.

13 to training on using electricity to enhance livelihoods and promote economic development (Appendix 11).

61. Design and monitoring framework impact indicators. The project impact was defined as pro-poor and balanced economic development of poor communes through the sustainable use of electricity and renewable energy in an affordable manner with a target of over 20% reduction in poverty rate in the project districts. At completion, the project substantially achieved the target. The poverty rate was typically reduced by 50% in districts where the project expanded access to reliable, affordable electricity (Table A1.1, Appendix 1).

F. Performance of the Borrower and the Executing Agency

62. The performance of the borrower was satisfactory given the overall complexity of the project, strong commitment of the central and provincial government, and the efforts made by MOIT and EVN to monitor and help guide and direct project implementation. The proactive engagement from local communities and central government agencies led to the successful completion of the project. The performance of the power companies and their PMUs was also satisfactory, although in the early stages of project implementation, some PMUs were deficient in procurement, safeguard compliance, and allocation of counterpart funds. These delayed several subprojects and placed an additional administrative burden on ADB project staff. However, in later stages, the power companies and PMUs allocated sufficient resources and made significant efforts, especially mobilizing experienced staff and project managers, to improve project performance to meet ADB and government requirements.

G. Performance of the Asian Development Bank

63. ADB’s performance was satisfactory . ADB coordinated closely with central and local government agencies, the power companies, and the PMUs to effectively monitor implementation of 31 subprojects in remote parts of the country. ADB responded to the borrower’s requests, supported the power companies and PMUs in project implementation, and guided them to comply with ADB requirements. ADB built capacity of the power companies, PMUs, and relevant stakeholders through trainings, workshops, and on-the-job trainings.

64. ADB conducted regular loan review missions including safeguard review missions, a midterm review, many special-purpose missions, and a project completion review mission. ADB’s approval of withdrawal applications and all payment to consultants, contractors, and suppliers was timely.

H. Overall Assessment

65. The overall project rating is successful . The project was relevant at the time of appraisal in addressing the government and ADB development policy objectives and remained relevant at project completion. The project is rated effective as it achieved and surpassed the outcome targets to provide reliable and affordable electricity supply to remote, mountainous communes. The project’s benefits and impact are likely sustainable . The project is rated efficient as the project achieved and surpassed the output targets within a reasonable timeframe and the reevaluated economic assessment confirms that the MHPs constitute an efficient use of resources.

14

Table 2: Overall Ratings Criteria Rating Relevance Relevant Effectiveness Effective Efficiency Efficient Sustainability Likely sustainable Overall Assessment Successful Development impact Satisfactory Borrower and executing agency Satisfactory Performance of Asian Development Bank Satisfactory Source: Asian Development Bank.

IV. ISSUES, LESSONS, AND RECOMMENDATIONS

A. Issues and Lessons

66. A sector loan modality with a phased approach was appropriate for the project, given the large number of subprojects implemented in multiple locations over a long period. It helped better identify subprojects, deal with changes during implementation, and enable the efficient use of funds and achievement of project outcome and outputs.

67. The project balanced economic and financial viability with supporting poor and vulnerable groups. The MHP’s surplus electricity, exceeding the requirements of the remote communes, was sold via the national grid to help the project’s overall economic and financial viability. The government’s commitment on policy, regulations, guidance, as well as financial support and the participation of the power companies and its subsidiaries, helped the success of the project and ensured ongoing ownership.

68. Project implementation was delayed because of disputes on land compensation (para 43) that resulted delays in completion of one MHP under output 1 (paras 13-14), poor performance by the initial TA consultants and some contractors, delays in equipment delivery, and the large number of small contract packages drawn up to suit local contractors. These could have been avoided with better safeguards and procurement planning.

69. During preparation of the project completion report, the power companies submitted their calculations for the missing financial ratios from 2009 to 2012. Even though the late submission of these ratio calculations does not address the covenant risks or satisfy the compliance requirements for earlier periods, they have been subsequently evaluated and included in this report (paras 44-45).

70. Lack of gender mainstreaming capacity resulted in the power companies not initially giving due attention to implementing the gender strategy and EMDPs. This could have been avoided if the power companies and their PMUs were provided gender mainstreaming capacity building during project preparation.

B. Recommendations

71. As in this project, funding for rural electrification projects should involve concessionary resources from both government and development partners. In addition, rural electrification programs should promote revenue-generating activities in project areas not only to help intended beneficiaries but also, through greater electricity use, to help support the financial and economic viability of the project.

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72. To promote productive use of electricity and implement social safeguards more effectively and efficiently, attention should be given to (i) disclosing information and consulting with relevant stakeholders in a more targeted manner; (ii) designing and implementing developmental activities more targeted to each group of ethnic minorities; and (iii) collaborating closely with local authorities to match the proposed developmental support and local needs.

73. Future monitoring . Nam Pay MHP needs to be completed on schedule (by December 2019). The NPC and CPC should ensure sufficient staff and financial resources are allocated in annual budgets for the ongoing O&M of the five MHPs.

74. Further action or follow-up . The power companies have submitted the audited project financial statements up to only the loan closing date. ADB should follow up with the CPC and NPC to ensure expenditures after loan closing are duly audited and the audited statements for fiscal year 2018 are submitted before 30 June 2019.

75. Covenants in the loan and grant agreements should be maintained in their existing forms.

76. Timing of the project performance evaluation report. It is recommended that the project performance evaluation be scheduled in Q3 2020.

16 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets and Achievement at Completion Indicators with Baselines Impact Promotion of pro-poor and Over 20% reduction in poverty Achieved. Poverty rate in the balanced economic rates in the districts to be provided project districts was reduced development of remote with electricity under the project by typically 50%, varying between mountainous communes and 2020. 10%-90% by 2017. Details in poor communes through the Table A1.1. sustainable use of electricity and renewable energy in an affordable manner. Outcome Provision of reliable and 5,000 households provided with Achieved. 8,767 households affordable supply of electricity by the mini-hydropower provided with electricity by five electricity to remote, plants developed under the project mini hydropower plants mountainous, and poor by 2016. developed under the project. communes. More than 100,000 households Achieved. 300,034 households provided with electricity by the grid (including 202,207 poor expansion component of the households) in 3,119 project by 2016. villages/hamlets provided with electricity by grid expansion by 2017.

Addition of over 500 MW of grid- Achieved. Additional 3,250 MW connected renewable energy of grid-connected renewable including small hydro (i.e., less energy installed by 2018. than 30 MW) capacity by 2016. Capacity of grid connected renewable energy as of 2009 was 439.4 MW, and as of 2018 was 3,699.6 MW including 2,970 MW of small hydro. Sources: EVN. 2019).

Annual generation of 100 GWh of Substantially achieved. 95.7 energy and 125,000 tons of annual GWh generated and 55,177 tons greenhouse gas emissions abated of greenhouse gas emission because of the project by 2016. abated per annum.

Additional annual generation of 26.6 GWh to be achieved by December 2019. Total greenhouse gas emission abated 70,532 tons per annum by December 2019 (Note A1).

75% of women headed Achieved. 12,672 women households in the targeted headed households (100% of communes are provided with women headed households in electricity by 2016. targeted communes) were provided with to electricity from the national grid, and each

Appendix 1 17

Design Summary Performance Targets and Achievement at Completion Indicators with Baselines household was provided a free service connection. Outputs 1. Installation of 5 to 10 mini- 30 MW of mini hydropower Substantially Achieved. 25 hydropower plants to electrify capacity installed. MW (83% of target) of mini mountainous communes. hydropower installed. Additional 7.5 MW is expected to be complete in December 2019, adding a total of 32.5 MW installed. 2. Electrification of 1,000 Expansion of medium voltage Achieved . 2,138 km of medium villages through grid network by 500 km and low voltage network and 6,916 km of expansion. voltage network by 1,300 km. low voltage network expanded.

Over 2 GWh of energy consumed Achieved. 6 GWh of energy in the predictive sectors in the consumed per year for targeted communities. productive sectors in project communes. With additional financing 3. Poor and vulnerable Provision of electricity to minimum Achieved. 53,865 poor and families in the project areas 48,333 poor households through vulnerable households provided connected to the expanded the OBA program who will have free service connections through electricity grid. access to electricity due to the OBA program. ongoing project.

More than 60,000 tCO 2 emission Over 76,200 tCO 2 emission reductions annually reduced per annum (Note A1).

MW = megawatt, GWh = gigawatt hours, kV = kilovolts, km = kilometer, tCO 2 = tons of CO 2 Source: Asian Development Bank, Vietnam Electricity, Northern Power Corporation, Central Power Corporation, and Southern Power Corporation.

18 Appendix 1

Note A.1: Calculation of Greenhouse Gas Emission Reduction

A1.1. Calculation of CO 2 Emissions Reduction for Output 1 (mini hydropower)

1. At appraisal, it was anticipated that 5-10 run-of-river mini-hydropower plants with a total capacity of 30 MW would be developed under the project, generating 100 GWh of renewable energy and abating 125,000 tons of annual greenhouse gas emissions per annum. Calculation of greenhouse gas emissions was based on the estimate for Nam Nghe MHP, the core subproject with emission coefficient of 0.6 kgCO 2/kWh. This was probably an incorrect calculation as 100 GWh of MHP-generated energy only reduces 60,000 tons (100 GWh x 1,000,000 [kWh/GWh) x 0.6 kgCO 2/kWh x 0.001 [tCO 2/ kgCO 2]).

2. At completion, greenhouse gas emission reduction for five run-of-river MHPs developed under the project was calculated following ADB guidelines for estimating greenhouse gas 1 emissions of Asian Development Bank Projects. Combined emission factor of 0.5674 tCO 2/MWh, which is used by UNFCCC for A Roang MHP,2 is used to estimate the CO2 emissions reduction.

3. Four completed MHPs generate approximately 95,727 MWh of power annually to the grid, leading to emission reductions of 55,177 tCO2 per annum. When that last MHP (Nam Pay) is completed, expected by December 2019, additional 26.6 GWh will be generated annually, result in a total annual emission reduction of 70,532 tons of CO2, as detailed below.

Carbon Emissions Reduction by Mini-hydropower Plants Mini hydropower Annual Generation (MWh) Annual Emissions Reduction (tCO2) A Roang 25,000 14,410.0 Dak Pring 24,000 13,833.6 Nam Nghe 36,076 20,794.2 So Vin 10,651 6,139.2 At project completion 95,727 55,177.04 Nam Pay 26,640 12,760.6 Expected by Dec. 2019 122,367 70,532.34 Combined emission factor: 0.5674 tCO 2/MWh. Source: Asian Development Bank.

A1.2. Calculation of CO 2 Emissions Reduction for Output 3 (Service Connections)

4. The OBA program contributed to reduction of carbon emissions by 1.89 tons of C0 2 per household per year as new electricity provided to the households substituted the use of kerosene as the main source of light and the use of fuelwood for cooking, resulting 76,200 tCO 2 emission reduction annually per 53,865 households who received access to electricity through the OBA program.

5. According to the report on Designing Output-based Aid (OBA) Scheme for Rural Electrification in Viet Nam ,3 a low-income unelectrified household in rural areas of Viet Nam uses

1 Asian Development Bank. 2017. ADB Guidelines for estimating greenhouse gas emissions of Asian Development Bank Projects: Additional Guidance for Clean Energy Projects . Manila 2 United Nations Framework Convention on Climate Change (UNFCCC). Monitoring Report (1 November 2016 – 30 June 2018) for A Roang mini-hydropower plant. (https://cdm.unfccc.int/filestorage/4/9/6/496ORBU5ALXISNG0KVWYMTEDZ3Q12P/Monitoring%20Report_6937.pdf ?t=T0p8cHFtb2M3fDAX7iFc0TEuAnDstHL0d3rn) 3 The report presents the design of an Output Based Aid (OBA) program under technical assistance TA 7262-VIE: Capacity Building of Renewable Energy Development.

Appendix 1 19 approximately 2 liters of kerosene or diesel in wick lamps every month, and 6 kg of fuelwood per household per day to cook rice and complementary foods. Once connected to the grid, each household would use on average 2 compact fluorescent lamps to substitute the wick lamps. Furthermore, electrical appliances such as a small fan, a TV, a mobile phone, or a radio would be eventually purchased. Some households buy rice cookers to save fuelwood consumption (about 75% of the total usage).

6. Show below is an estimation of the carbon emission reductions by substituting kerosene and 75% of fuelwood consumption for CFLs, a TV, a fan, and a rice cooker. It has been estimated that only 75% of targeted households would be able to purchase a rice cooker.

Carbon emissions reduction by OBA program Base case OBA Scenario 2 kerosene wick lamps 2 CFLs + 1 TV + 1 Fan Annual kerosene consumption 24 L/HH Annual power consumption 400 kWh/HH Net caloric value for kerosene 40.4 TJ/ton Grid emission factor 0.479 tCO2/MWh CO2 emission factor for kerosene 77.4 tCO2/TJ

Annual kerosene lamp emissions 0.075 tCO 2/HH Annual CO 2 emissions 0.19 tCO 2/HH Fuelwood Rice cooker (75%) and fuelwood (25%) Daily fuelwood consumption 6 kg/HH Annual power consumption 180 kWh/HH

Annual CO 2 emissions with 0.06 tCO 2/HH Annual wood consumption 2.2 t/HH rice cookers Annual CO 2 emissions with 1.61 tCO 2/HH Net caloric value for fuelwood 0.015 TJ/ton wood consumption CO2 emission factor for fuelwood 109.6 tCO2/TJ

Annual cooking emissions 1,67 tCO 2/HH Annual cooking emissions 3.68 tCO 2/HH

Emissions reduction per HH = 1.89 tCO 2/HH year

Total CO2 emission reduction = 1.89 tCO 2/HH year x 75% of 53,865 HHs = 76,200 tCO 2/ year HH = household, CFL = compact fluorescent lamp. Source: Asian Development Bank.

20 Appendix 1

Table A1.1: Poverty Reduction in the Districts Provided Electricity under the Project

At appraisal, poverty rates in targeted districts were established based on the national poverty line of less than D200,000 ($13) per month. At completion, poverty rates of project districts were based on new poverty levels introduced in 2015, 4 in which a person in rural areas having monthly income of less than D700,000 ($30) is considered as poor.

It is hard to compare poverty rates at project appraisal (2009) and at completion (2017) as the level of poverty line was increased by 2.3 times (from D200,000 [$13] in 2009 to D700,000 [$30] in 2015). Poverty rates listed in the table below were collected from provincial department of labor, invalids, and social affairs by the power companies and their provincial subsidiaries.

Household Poverty Rate (%) % Reduction of Electrification Rate (%) Poverty Rate Province/ District (2009-2017) 2009 2017 2009 2017 (a) (b) (c) (d) (e)=(c-d)/(c) NORTH REGION I Dien Bien Province 1 Dien Bien City 99.1 100.0 1.1 0.5 57.8% 2 Dien Bien District 90.5 95.0 18.3 21.3 -16.1% 3 Tuan Giao District 67.3 82.7 43.9 48.9 -11.5% 4 Dien Bien Dong District 51.9 83.2 49.8 60.8 -22.0% 5 Tua Chua District 60.3 78.1 53.0 60.1 -13.4% 6 Muong Nhe District 11.1 71.1 58.5 69.3 -18.5% 7 Muong Cha District 56.4 79.7 55.1 62.8 -14.0% 8 Muong Ang District 69.9 90.1 56.1 41.0 26.8% 9 Nam Po District (*) 79.0 (*) 63.4 N/A 10 Muong Lay Town 98.5 95.0 5.3 7.8 -47.6% II Lai Chau Province 1 Tan Uyen District N/A 96.1 31.3 23.7 24.5% 2 Than Uyen District N/A 94.8 26.0 20.6 20.7% 3 Phong Tho District N/A 97.5 27.1 33.3 -22.6% 4 Muong Te District N/A 79.1 41.4 46.1 -11.4% 5 Sin Ho District N/A 82.8 30.5 37.1 -21.6% 6 Tam Duong District N/A 94.9 22.0 31.2 -41.9% 7 Nam Nhun District N/A 74.8 41.4 32.1 22.4% III Ha Giang Province 1 Quan Binh District N/A 97.5 28.2 21.5 23.8% 2 Hoang Su Phi District N/A 96.2 35.4 26.4 25.4% 3 Xi Man District N/A 95.4 36.3 28.3 22.0% 4 Ba Me District N/A 95.6 36.4 22.1 39.3% 5 Bac Quang District N/A 98.2 26.8 13.6 49.3% 6 Vi Xuyen District N/A 98.3 30.9 20.4 34.0% 7 Yen Minh District N/A 96.6 32.5 23.7 27.1% 8 Quan Ba District N/A 96.4 36.5 21.5 41.1% 9 Dong Van District N/A 95.5 39.4 26.1 33.8%

4 The Government of Viet Nam. 2015. Prime Minister Decision no. 59/2015/QD-TTg: Promulgating multidimensional poverty levels applicable during 2016-2020 . Ha Noi

Appendix 1 21

Household Poverty Rate (%) % Reduction of Electrification Rate (%) Poverty Rate Province/ District (2009-2017) 2009 2017 2009 2017 (a) (b) (c) (d) (e)=(c-d)/(c) 10 Meo Vac District N/A 95.4 40.6 27.8 31.5% IV Lang Son Province 1 Trang Dinh District N/A 96.1 12.7 17.5 -38.3% 2 Bac Son District N/A 95.0 15.3 16.4 -7.5% 3 Binh Gia District N/A 91.1 45.7 28.6 37.4% 4 Huu Lung District N/A 99.2 15.9 14.8 6.9% 5 Chi Lang District N/A 99.7 13.3 13.7 -3.2% 6 Van QuanDistrict N/A 98.1 33.6 25.7 23.7% 7 Van Lang District N/A 97.9 19.3 18.9 2.0% 8 Dinh Lap District N/A 97.6 29.1 23.0 20.9% 9 Cao Loc District N/A 99.7 15.2 15.9 -4.8% 10 Loc Binh District N/A 95.6 20.4 19.2 5.8% V Yen Bai Province 1 Van Chan District 97.9 98.7 36.8 32.8 10.9% 2 Yen Binh District 98.4 99.4 26.8 23.3 12.9% 3 Mu Cang Chai District 96.1 97.5 45.4 41.3 9.2% 4 Van Yen District 97.8 98.8 32.8 28.7 12.5% 5 Tran Yen District 98.4 100.0 29.6 24.5 17.0% 6 Luc Yen District 98.8 100.0 31.5 27.3 13.4% VI Lao Cai Province 1 Bao Thang District N/A N/A 39.0 30.0 23.1% 2 Bao Yen District N/A N/A 55.0 5.0 90.9% 3 Muong Khuong District N/A N/A 11.0 20.0 -81.8% 4 Sapa District N/A N/A 54.0 16.0 70.4% 5 Van Ban District N/A N/A 37.0 58.0 -56.8% 6 Bat Xat District N/A N/A 62.0 31.0 50.0% CENTRAL REGION I Quang Tri Province 1 Hai Lang District 87.0 100.0 19.1 5.7 70.2% 2 Trieu Phong District 79.2 98.0 17.2 8.0 53.5% 3 Gio Linh District 99.8 100.0 17.3 8.9 48.6% 4 Vinh Linh District 89.0 99.0 12.0 5.2 56.7% 5 Cam Lo District 92.0 100.0 14.3 4.2 70.6% 6 Dakrong District 75.0 95.9 41.0 39.7 3.2% 7 Huong Hoa District 95.2 98.2 N/A 24.6 N/A 8 Quang Tri town 98.0 100.0 6.5 3.9 40.0% II Thua Thien -Hue Province 1 Phong Dien District 80.0 95.0 8.6 9.0 -4.7% 2 Quang Dien District 99.9 100.0 12.3 9.2 25.2% 3 Huong Tra Town 99.5 100.0 7.1 4.8 32.4% 4 Huong Thuy Town 99.7 100.0 3.8 3.0 21.1% 5 Phu Loc District 97.8 99.9 13.9 7.4 46.8% 6 Phu Vang District 100.0 100.0 7.7 5.6 27.3% 7 A Luoi District 94.6 99.8 24.6 21.5 12.6% 8 Nam Dong District 96.0 100.0 11.4 10.2 10.5% 9 Hue City 100.0 100.0 3.8 1.7 55.3%

22 Appendix 1

Household Poverty Rate (%) % Reduction of Electrification Rate (%) Poverty Rate Province/ District (2009-2017) 2009 2017 2009 2017 (a) (b) (c) (d) (e)=(c-d)/(c) III Quang Nam Province 1 Tam Ky City 100.0 100.0 7.6 1.0 86.8% 2 Hoi An City 100.0 100.0 3.4 0.2 94.1% 3 Dong Giang District 80.0 100.0 35.3 4.1 88.4% 4 Tay Giang District 46.2 83.7 54.1 43.1 20.3% 5 Nam Giang District 54.7 94.4 55.2 44.3 19.7% 6 Phuoc Son District 86.5 97.1 50.5 31.3 38.0% 7 Nam Tra My District 27.8 31.1 60.7 45.9 24.4% Bac Tra My District 44.9 70.2 53.8 39.5 26.6% 9 Hiep Duc District 96.5 99.8 32.5 13.3 59.1% 10 Tien Phuoc District 98.7 99.5 33.5 7.0 79.1% 11 Dai Loc District 99.2 99.9 16.7 4.4 73.7% 12 Dien Ban Town 100.0 100.0 8.0 1.6 80.0% 13 Duy Xuyen District 100.0 100.0 20.3 4.0 80.3% 14 Thang Binh District 99.8 100.0 19.4 4.8 75.3% 15 Que Son District 99.8 100.0 18.1 6.4 64.6% 16 Nui Thanh District 99.5 99.6 14.1 2.7 80.9% 17 Phu Ninh District 100.0 100.0 13.3 2.5 81.2% 18 Nong Son District 97.7 100.0 57.7 13.1 77.3% IV Quang Ngai 1 Ba To District 91.3 95.1 N/A 27.3 N/A 2 Son Tay District 90.7 95.4 N/A 14.6 N/A 3 Son Ha District 94.7 98.1 N/A 25.3 N/A 4 Nghia Hanh District 97.0 100.0 20.3 4.9 75.9% 5 Mo Duc District 100.0 100.0 20.2 6.4 68.3% 6 Duc Pho District 99.8 100.0 17.0 6.6 61.2% 7 Tu Nghia District 100.0 100.0 5.3 4.0 24.5% 8 Son Tinh District 99.8 100.0 40.2 2.7 93.3% 9 Tay Tra District 85.3 95.7 86.5 64.2 25.8% 10 Binh Son District 100.0 100.0 20.1 6.4 68.2% 11 Minh Long District 80.0 100.0 57.1 32.8 42.6% 12 Quang Ngai City 100.0 100.0 4.3 2.4 44.2% V Gia Lai 1 Phu Thien District 89.2 99.5 21.6 12.5 42.1% 2 La Grai District 86.3 98.8 21.0 7.2 65.7% 3 Chu Pah District 88.1 98.2 15.0 12.3 18.0% 4 Ayun Pa District 100.0 100.0 8.0 11.4 -42.5% 5 Ia Pa District 100.0 100.0 7.1 11.7 -64.8% 6 Chu Prông District 98.0 99.0 16.5 9.1 44.8% 7 Kong Chro District 95.4 100.0 50.0 30.1 39.8% 8 An Khê Town 98.5 99.9 1.5 2.1 -40.0% 9 Đak Po District 98.0 99.7 14.7 8.5 42.2% 10 Duc Co District 84.7 99.0 13.2 11.7 11.4% 11 Krong Pa District 82.6 99.4 54.2 20.1 62.9% 12 Chu Se District 92.0 99.7 9.5 6.8 28.4% 13 Dak Đoa District 96.4 99.6 10.0 9.1 9.0%

Appendix 1 23

Household Poverty Rate (%) % Reduction of Electrification Rate (%) Poverty Rate Province/ District (2009-2017) 2009 2017 2009 2017 (a) (b) (c) (d) (e)=(c-d)/(c) 14 Mang Yang District 93.0 100.0 34.5 22.0 36.2% SOUTH REGION I Tra Vinh Province 1 Cang Long District 96.2 99.3 49.4 3.1 93.7% 2 Cau Ke District 89.2 98.5 46.0 3.0 93.6% 3 Tieu Can District 90.3 99.1 55.4 2.3 95.8% 4 Chau Thanh District 90.8 98.6 45.2 7.5 83.5% 5 Cau Ngang District 86.4 98.7 60.5 9.1 85.0% 6 Tra Cu District 89.9 98.6 53.9 10.3 80.8% 7 Duyen Hai District 86.4 97.3 47.0 11.4 75.8% 8 Duyen Hai Town (*) 99.4 (*) 2.0 N/A II Soc Trang Province 1 Soc Trang City 95.50 100.00 9.10 4.10 54.9% 2 My Xuyen District 89.80 96.35 27.93 7.20 74.2% 3 Vinh Chau District 82.20 100.00 30.79 16.55 46.2% 4 My Tu District 84.60 97.93 20.73 12.02 42.0% 5 Ke Sach District 91.50 100.00 28.00 16.23 42.0% 6 Cu Lao Dung District 88.20 97.05 20.10 10.05 50.0% 7 Long Phu District 83.40 100.00 25.52 13.01 49.0% 8 Thanh Tri District 86.60 100.00 24.73 16.04 35.1% 9 Nga Nam District 91.00 100.00 23.92 12.64 47.2% 10 Chau Thanh District (*) 100.00 (*) 9.83 N/A 11 Tran De District N/A 97.19 27.45 11.30 58.8% Sources: Northern Power Corporation, Central Power Corporation, Southern Power Corporation, and Department of Labor, Invalids, and Social affairs of project provinces.

24 Appendix 1

Table A1.2: Achievement of Project Output 1

Annual No. of MV Line LV Line Capacity Generation Village No. of HH extended extended MHP (MW) (GWh) Electrified Electrified (km) (km) COD Jun. Nam Nghe 7.5 36.08 6 657 4.4 2.5 2018 Jun. Nam Pay 7.5 26.64 7 1,126 7 9.5 2019 Dec. So Vin 2.8 10.651 5 2,536 7.6 7.6 2017 Jan. A Roang 7.2 25.00 9 724 30 0 2016 Dec. Dak Pring 7.5 24.00 6 3,724 2 0 2017 Total 32.5 122.4 33.0 8767 51.0 19.6 MHP = mini-hydropower plant, No. = number, HH = household, MW =megawatt, GWh = gigawatt-hour, km = kilometer, MV = medium voltage, LV = low voltage, COD = commissioning date. Sources: Northern Power Corporation and Central Power Corporation. 2019.

Appendix 1 25

TableA1.3: Achievement of Project Output 2 and 3

Southern region Central Northern Region

Thua Soc Tra Quang Quang Quang Gia Thien- Lai Dien Yen Lao Ha Lang Item Unit Trang Vinh Tri Nam Ngai Lai Hue Chau Bien Bai Cai Giang Son Total (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) At Appraisal HH electrification rate % 87.7 86.8 91.0 36.0 57.0 Unelectrified HHs HH 32,887 28,015 2,769 35,374 30,518 129,563 Target electrification rate % 95.1 94.1 99.9 66.9 68.0 92.6 Targeted Electrification (a+b) 20,388 19,923 56,419 17,070 7,817 121,617 (a). To be connected HH 20,388 19,923 1,639 17,070 7,817 66,837 (b). Rehabilitated HH - - 54,780 54,780 Require Facilities Medium voltage line Km 304.0 207.0 115.0 220.0 42.0 888.0 Substation MVA 10.8 7.4 3.6 5.6 3.3 30.7 Low voltage line Km 867.0 654.0 666.0 242.0 86.0 2,515.0 Average cost $/HH 880.0 670.0 150.0 841.0 409.0 468.0 At Completion HH electrification rate % 99.4 98.4 99.0 97.9 99.0 98.8 100.0 93.1 87.2 99.1 92.7 96.7 97.0 96.8 Achieved Electrifi ca tion (a+b) 45,747 37,131 38,063 20,192 48,083 19,245 41,476 14,183 12,503 7,712 7,446 3,616 4,637 300,034 (a). New connection HH 45,410 34,955 1,491 4,820 10,577 15,933 416 12,722 11,399 7,712 7,446 2,327 4,637 159,845 (b). Rehabilitation HH 337.0 2,176 36,572 15,372 37,506 3,312 41,060 1,461 1,104 - - 1,289 - 140,189 Villages connected No. 293.0 307 412 631 150 269 302 206 182 61 163 68 89 3,133 Poo r HH connected No. 30,257 36,417 22,165 29,725 8,256 12,355 20,779 12,249 9,601 7,018 6,925 2,387 4,405 202,538 % of poor household No. 80% 81% 58% 56% 54% 64% 50% 86% 77% 91% 93% 66% 95% 68% Subsidized connection (a+b) 45,410 34,955 10,692 8,249 8,458 2,458 8,229 12,722 11,399 - - - - 142,572 (a) from Grant (OBA) HH - 8,175 10,692 8,249 8,458 2,458 8,229 5,666 1,938 - - - - 53,865 (b) from Loan HH 45,410 26,780 - - - - - 7,056 9,461 - - - - 88,707 Achieved Facilities Medium voltage line Km 465.3 292.4 166.7 79.8 53.8 116.5 19.1 323.5 440.9 42.6 27.7 49.8 59.7 2,137.7 Substation MVA 18.2 13.1 23.1 19.5 4.7 8.9 2.9 6.0 7.8 3.8 2.3 3.3 2.1 115.7 Low voltage lines Km 1,418.7 1,137.7 1,006.6 1,235.3 111.5 356.8 297.2 327.6 335.2 121.3 234.0 149.7 184.3 6,915.8 Average cost $/HH 441.3 437.8 554.9 339.4 462.2 409.9 305.9 1,197.7 1,342.0 348.1 505.6 1,192.5 754.9 463.1 Annual energy GWh 0.9 0.7 0.8 0.4 1.0 0.4 0.8 0.3 0.3 0.2 0.1 0.1 0.1 6.0 consumption in productive sectors HH = household; MVA = megavolt-ampere. Source: Asian Development Bank.

26 Appendix 2

PROJECT COST AT APPRAISAL AND ACTUAL ($ million)

Appraisal Estimate Actual Foreign Local Foreign Local Item Exchange Currency Total Exchange Currency Total A. Base Cost 1. Output 1 – Mini -hydropower 12.43 58.21 70.63 8.06 46.82 54.88 a. Civil Works 0.00 29.14 29.14 0.00 31.47 31.47 b. Equipment 8.85 0.98 9.84 7.41 4.84 12.26 c. Transmission line to grid and local distribution 3.57 10.42 13.99 0.65 1.05 1.69 network d. Resettlement and Environmental conservation 0.00 4.80 4.80 0.00 1.36 1.36 e. Project Management and Supervision 0.00 12.86 12.86 0.00 8.10 8.10 2. Outpu t 2 - Grid Extension and Rehabilitation 21.10 80.17 101.27 15.62 123.31 138.94 a. Civil Works 0.00 54.71 54.71 0.00 82.36 82.36 b. Transmission (materials) 21.10 2.34 23.44 15.62 17.10 32.72 c. Resettlement and Environmental conservation 0.00 5.40 5.40 0.00 6.45 6.45 d. Project Management and Supervision 0.00 17.72 17.72 # 0.00 17.40 17.40 3. Output 3 0.10 3.30 3.40 0.09 2.15 2.25 a. Service Connections 0.00 3.30 3.30 0.00 2.15 2.15 b. Consultants 0.10 0.00 0.10 0.09 0.00 0.09 Subtotal (A) 33.62 141.68 175.30 23.77 172.29 196.06 B. Contingencies 5.24 19.37 24.60 0.00 0.00 0.00 C. Financing Charges During Implementation 1.1 1 0.00 1.11 1.11 0.00 1.11

Total (A+B+C) 39.97 161.04 201.02 24.88 172.29 197.17 Output 3 : $3.4 million including supplementary $3 million grant provided by the Multi -Donor Clean Energy Fund under the Clean Energy Financing Partnership in April 2014, and

$0.4 million counterpart funds provided by Power Companies .

Source: Asian Development Bank estimates .

Appendix 3 27

PROJECT COST BY FINANCIER

Table A3.1: Project Cost at Appraisal by Financier ($ million)

Total ADB + CEF PC1 PC2 PC3 Cost b % of % of % of % of Amount a Cost Amount Cost Amount Cost Amount Cost Amount Category Category Category Category Item {A} {A}/{E} {B} {B}/{E} {C} {C}/{E} {D} {D}/{E} {E}

A. Investment Costs 1. Output 1 – Mini -hydropower 52.97 75.4% 11.32 16.1% 0.00 0.0% 5.98 8.5% 70.27 a. Civil Works 38.93 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 38.93 b. Equipment 9.84 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 9.84 b. Transmission line to grid and local distribution 4.20 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% network 4.20 c. Resettlement and Environmental conservation 0.00 0.0% 3.60 75.0% 0.00 0.0% 1.20 25.0% 4.80 d. Project Management and Supervision 0.00 0.0% 7.72 61.8% 0.00 0.0% 4.78 38.2% 12.50 2. Output 2 - Grid Extension and Rehabilitation 78.15 76.9% 7.83 7.7% 7.83 7.7% 7.83 7.7% 101.63 a. Civil Works 54.71 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 54.71 b. MV Transmission line and LV distribution 23.44 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 23.44 network (materials) c. Resettlement and Environmental conservation 0.00 0.0% 1.80 33.3% 1.80 33.3% 1.80 33.3% 5.40 d. Project Management and Supervision 0.00 0.0% 6.03 33.3% 6.03 33.3% 6.03 33.3% 18.08 3. Output 3 - Service Connections 3.00 88.2% 0.08 2.4% 0.09 2.6% 0.23 6.8% 3.40 a. Service Connections 2.90 87.9% 0.08 2.4% 0.09 2.7% 0.23 7.0% 3.30 b. Consultants 0.10 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.10 Subtotal (A) 134.12 76.5% 19.23 11.0% 7.92 4.5% 14.04 8.0% 175.30 B. Contingencies 1. Output 1 7.58 75.4% 1.62 16.1% 0.00 0.0% 0.86 8.5% 10.06 2. Output 2 11.19 76.9% 1.12 7.7% 1.12 7.7% 1.12 7.7% 14.55 3. Output 3 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 Subtotal (B) 18.77 76 .3% 2.74 11.1% 1.12 4.6% 1.98 8.0% 24.60 C. Financing Charges During Implementation 1.11 100% 0.00 0.0 % 0.00 0.0 % 0.00 0.0 % 1.11 Total Project Cost (A+B+C) 154.00 21.97 9.04 16.01 201.02 % Total Project Cost 76.6% 10.9% 4.5% 8.0% 100% ADB = Asian Development Bank, CEF = Clean Energy Fund under Clean Energy Fund Partnership Facility, PC = Power Corporation, MV = Medium Voltage; LV = Low Voltage a Excluded $2.5 million financed under the piggy back technical assistance. ADB loan amount is $151 million (outputs 1 and 2) and CEF amount is $3 million (output 3). b Includes taxes and duties. Source: Asian Development Bank estimates.

28 Appendix 3

Table A3.2: Project Cost at Completion by Financier ($ million)

Total ADB + CEF PC1 PC2 PC3 Cost b % of % of % of % of Amount a Cost Amount Cost Amount Cost Amount Cost Amount Category Category Category Category

Item {A} {A}/{E} {B} {B}/{E} {C} {C}/{E} {D} {D}/{E} {E} A. Investment Costs 1. Output 1 – Mini -hydropower 34.59 49.2% 13.96 19.9% 0.00 0.0% 6.34 9.0% 54.88 a. Civil Works 25.27 64.9% 4.36 11.2% 0.00 0.0% 1.84 4.7% 31.47 b. Equipment 7.88 80.1% 4.05 41.2% 0.00 0.0% 0.33 3.3% 12.26 b. Transmission line to grid and local distribution 1.44 34.2% 0.19 4.6% 0.00 0.0% 0.06 1.5% 1.69 network c. Resettlement and Environmental conservation 0.00 0.0% 0.99 20.6% 0.00 0.0% 0.37 7.7% 1.36 d. Project Management and Supervision 0.00 0.0% 4.36 34.9% 0.00 0.0% 3.74 29.9% 8.10 2. Output 2 - Grid Extension and Rehabilitation 103.86 102.2% 11.80 11.6% 9.57 9.4% 13.70 13.5% 138.94 a. Civil Works 73.11 133.6% 3.17 5.8% 3.26 6.0% 2.82 5.1% 82.36 b. MV Transmission line and LV distribution 30.75 131.2% 0.85 3.6% 0.00 0.0% 1.12 4.8% 32.72 network (materials) c. Resettlement and Environmental conservation 0.00 0.0% 1.13 20.9% 2.40 44.5% 2.92 54.0% 6.45 d. Project Management and Supervision 0.00 0.0% 6.64 36.7% 3.91 21.6% 6.85 37.9% 17.40 3. Output 3 - Service Connections 1.83 53.8% 0.02 0.7% 0.25 7.4% 0.14 4.2% 2.25 a. Service Connections 1.74 52.6% 0.02 0.7% 0.25 7.6% 0.14 4.4% 2.15 b. Consultants 0.09 93.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.09 Subtotal (A) 140.28 80.0% 25.78 14.7% 9.82 5.6% 20.18 11.5% 196.06 B. Contingencies 1. Output 1 0.00 0.00 0.00 0.00 0.00 2. Output 2 0.00 0.00 0.00 0.00 0.00 3. Output 3 0.00 0.00 0.00 0.00 0.00 Subtotal (B) 0.00 0.00 0.00 0.00 0.00 C. Financing Charges During Implementation 1.11 100% 0.00 0% 0.00 0% 0.00 0% 1.11 Total Project Cost (A+B+C) 141.39 25.78 9.82 20.18 197.17 % Total Project Cost 71.7% 13.1% 5.0% 10.2% 100% ADB = Asian Development Bank, CEF = Clean Energy Fund under Clean Energy Fund Partnership Facility, PC = Power Corporation, MV = Medium Voltage; LV = Low Voltage a ADB loan amount is $139.56 million (outputs 1 and 2), CEF amount is $1.83 million (output 3). b Includes taxes and duties. Sources: Asian Development Bank, Northern Power Corporation, Central Power Corporation, Southern Power Corporation.

Appendix 4 29

DISBURSEMENT OF ASIAN DEVELOPMENT BANK LOAN AND GRANT PROCEEDS

Table A4.1: Annual and Cumulative Disbursement of ADB Loan and Grant Proceeds

Annual Disbursement Cumulative Disbursement Amount ($ million) % of Amount ($ million) % of Year Loan Grant Total Total Loan Grant Total Total 2010 2011 1.60 1.60 1.1 1.60 1.60 1.1 2012 17.75 17.75 12.6 19.35 19.35 13.7 2013 29.70 29.70 21.0 49.05 49.05 34.7 2014 25.08 25.08 17.7 74.13 74.13 52.4 2015 24.44 24.44 17.3 98.57 98.57 69.7 2016 27.74 27.74 19.6 126.31 126.31 89.3 2017 18.68 18.68 13.2 144.99 144.99 102.5 2018 (5.43) 1.83 (3.60) -2.5 139.56 1.83 141.39 100.0 Total 139.56 1.83 141.39 100.0 139.56 1.83 141.39 100.0 ADB = Asian Development Bank Note: There were five revisions to the contract awards and disbursement projections during implementation: (i) in June 2013 after project midterm review in March 2013, because of delays in preparation of noncore subprojects, (ii) in March 2014 due to bank-wide cleanup of deficiencies in eOps, (iii) in May 2014 after approval of additional financing (Grant 0384), (iv) in September 2015 because of further delays in physical progress and extension of the loan closing date from 30 June 2016 to 31 December 2017; and (v) in October 2016 to add baseline projections of $3 million grant. Source: Asian Development Bank.

Figure A4.1: Projection and Actual Cumulative Disbursements of ADB Loan and Grant Proceeds ($ million)

160 156.17 6.0 5.5 140 139.56 5.0 120 4.5 4.0 100 3.5 80 3.00 3.0 2.50 2.5 60 2.0 1.83 40 1.5 1.0 20 0.5 0 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cumulative Disb. Loan Projected Disb. Loan Projected Disb. Grant Cumulative Disb. Grant

30 Appendix 5

CONTRACT AWARDS OF ASIAN DEVELOPMENT BANK LOAN PROCEEDS

Table A5.1: Annual and Cumulative Contract Awards of ADB Loan and Grant Proceeds

Annual Contract Award Cumulative Contract Award Amount ($ million) % of Amount ($ million) % of Year Loan Grant Total Total Loan Grant Total Total 2010 2011 16.18 16.18 11.5 16.18 16.18 11.5 2012 25.65 25.65 18.3 41.83 41.83 29.8 2013 30.47 30.47 21.7 72.30 72.30 51.5 2014 41.12 41.12 29.3 113.42 113.42 80.9 2015 25.00 25.00 17.8 138.42 138.42 98.7 2016 8.41 1.83 10.24 7.3 146.82 1.83 148.65 106.0 2017 1.08 1.08 0.8 147.91 1.83 149.74 106.7 2018 0.15 0.15 0.1 148.05 1.83 140.28 106.8 2019 (9.60) (9.60) -6.8 138.45 1.83 140.28 100.0 Total 138.45 1.83 140.28 100.0 138.45 1.83 140.28 100.0 ADB = Asian Development Bank, Cum. = cumulative, CA = contract award. () = negative Sources: Asian Development Bank.

Figure A5.1: Projection and Actual Cumulative Contract Award of ADB Loan and Grant Proceeds ($ million) 160 6.0 156.17 5.5 140 5.0 138.45 120 4.5 4.0 100 3.5 80 3.00 3.0 2.79 2.5 60 2.0 1.83 40 1.5 1.0 20 0.5 0 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Projected CA Loan Cumulative CA Loan Projected CA Grant Cumulative CA Grant

Appendix 6 31

CHRONOLOGY OF MAIN EVENTS

Date Milestone Event

2008 12-18 Nov Fact Finding Mission 05 Dec Management Review Meeting

2009 14 Jan Staff Review Committee Meeting 24-25 Feb Loan Negotiation 30 Mar Board Approval 9-16 Nov 2009 Loan Review Mission 17 Sept Loan Signing 21 Dec Loan Effectiveness

2010 5 Feb Completion of technical design for A Roang MHP 16 March TA Signing 19 Apr Recruitment of consulting firm for hydropower subprojects. 30 Nov-3 Dec Loan and TA Review Mission

2011 20-24 Jun Loan and TA Review Mission

2012 1-10 Feb 2012 Special Project Administration and TA Review Mission Apr Approval of A Roang’s EMP, EMDP and RP 9-18 Jul Loan Review Mission Mid- 2012 ADB approved the Nam Nghe MHP 13 Aug Approval of IEE report for Nam Nghe MHP 15 Aug Approval of So Vin MHP subproject 2 Dec Approval of Dak Pring Hydropower Project

2013 7-18 Mar Project Midterm Review and TA Review Mission 18 Mar Cancellation of the contract with consulting firm. 5 Mar Completion of technical design for Nam Pay MHP. 4 Apr Completion of technical design for Dak Pring MHP June Approval of Dak Pring MHP’s EMP, EMDP and RP July Transfer of Loan and TA Administration to Viet Nam Resident Mission August Completion of technical design for Nam Nghe MHP. Sep Approval of So Vin MHP’s detail design 14 Nov Bidding process for Nam Pay MHP stated 1-12 Nov Loan Review Mission

2014 24 Jan Issuance of investment license for Nam Nghe MHP by Lai Chau Provincial People's Committee (PPC) 26-27 Feb Appraisal of Additional Co-financing for Output-based Aid Program 11 Mar Issuance of investment license for Dak Pring MHP 26 May Signing MOU for OBA Program 11 May Bidding process for Nam Nghe MHP started

32 Appendix 6

Date Milestone Event 19 May Bidding process for Dak Pring MHP started July Construction of Nam Pay MHP commenced 4 July Approval of So Vin MHP’s investment license by Son La PPC 18 July Bidding process for So Vin MHP stated July Transfer of Grant Administration to Viet Nam Resident Mission 25 Aug – 12 Sep Loan and TA Review Mission 20-25 Oct Special Project Administration Mission Nov Approval of Nam Pay Hydropower Plan’s EMDP and Resettlement Plan (RP) Nov Approval of Nam Nghe MHP’s EMP, EMDP and RP 1-11 Dec Loan and TA Review Mission Dec 2014 Construction of Nam Nghe MHP commenced

2015 9 Jan Construction of So Vin MHP commenced 30 Mar-9 Apr Loan and TA Review Mission 4-15 Sep Safeguards Review Mission 2-6 Nov Mission by ADB Office of Auditor General 1-12 Dec Loan and TA Review Mission 15 Dec Initial TA Completion Date 30 Dec Completion of equipment installation for A Roang MHP

2016 19 Jan Commissioning of A Roang MHP 27 May Approval of SOE ceiling increase from $100,000 to $200,000 30 May-4 June, 4-15 Jul Loan and TA Review Mission 30 June Original Loan Closing Date 5-21 Dec Loan and TA Review Mission

2017 7-16 Mar Loan and TA Review Mission 5-22 Sep Loan and TA Review Mission 22 Nov Completion of equipment installation for Dak Pring MHP 4-13 Dec Loan and TA Review Mission 21 Dec Commissioning of Dak Pring MHP 26 Dec Completion of equipment installation for So Vin MHP 26 Dec Commissioning of So Vin MHP 31 Dec Loan Closing Date 31 Dec Completion of equipment installation for Nam Nghe MHP

2018 12 June Commissioning of Nam Nghe MHP

2019 7-18 Jan Project Completion Review 20 Feb Final cancellation of unutilized loan proceeds of SDR 6,383,614.41 22 Feb Financial closing of loan account ADB = Asian Development Bank, NPC = Northern Power Corporation, EVN = Electricity of Viet Nam, kV = kilovolt, SPC = Southern Power Corporation, CPC = Central Power Corporation, PCR = Project Completion Report, TA = technical assistance, MHP = Mini Hydropower, EMDP = Ethnic Minority Development Plan, IEE = Initial Environment Examination, EMP = Environmental Management Plan, RP = Resettlement Plan Source: Asian Development Bank.

Appendix 7 33 PROJECT IMPLEMENTATION SCHEDULE

(Appraisal vs. Actual) 2009 2010 2011 2012 2013 2014 2015 2016 20172018 2019 Item Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q 2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 1. Loan Approval 2. Loan Effectivity 3. Grant Approval 4. Grant Effectivity 5. Output 1 - Mini-hydropower 1. Northern Power Corporation Recruitment of Consultants Identification, Rankings, and Feasibility Studies Technical Design Bidding Documents Procurement Implementation Commissioning

2. Central Power Corporation Recruitment of Consultants Identification, Rankings, and Feasibility Studies Technical Design Bidding Documents Procurement Implementation Commissioning

6. Output 2 - Grid Extension 1. Northern Power Corporation Recruitment of Consultants Identification, Rankings Feasibility Studies Bidding Documents Procurement

Implementation

34 Appendix 7

2009 2010 2011 2012 2013 2014 2015 2016 20172018 2019 Item Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q 2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 2. Southern Power Corporation Recruitment of Consultants C Indentification and Ranking C Feasibility Studies C Bidding Documents Procurement Implementation

3. Central Power Corporation Recruitment of Consultants Indentification and Ranking Feasibility Studies Bidding Documents Procurement

Implementation 7. Output 3 - Service Connections Service Connection by Power Companies Recruitment of Verification Consultants Verification Process 8. Loan and Grant Closing Date At appraisal Actual (Output 1, Output 2-Phase 1, and Output 3) Actual Output 2 (Phase 2) Actual Output 2 (Phase 3) Actual Output 2 (Phase 4)

Appendix 8 35

SUMMARY OF CONTRACTS FINANCED BY ASIAN DEVELOPMENT BANK

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) CÔNG TY CỔ PHẦN XÂY DỰNG ĐIỆN VNECO Package 7W: Construction of distribution lines and 02B 0001 10 -Precinct 6, Quang Dieu Ward, Quy Nhon city, 149,725 substations for Cang Long District, Tra Vinh province. Binh Dinh province. Package 9W: Construction of transmission lines and CÔNG TY CỔ PHẦN CƠ KHÍ VÀ XÂY LẮP LÂM substations for 5 communes: Thanh Phu, Thong Hoa, Tam 02B 0002 ĐỒNG-Road 20, Hiep An commune, Duc Trong 370,498 Ngai, Hoa An, An Phu Tan, Cau Ke district, Tra Vinh district, Lam Dong province. province. Package 12W: Construction of transmission lines and CÔNG TY CỔ PHẦN XÂY LẮP ĐIỆN CÀ MAU-10 substations for 8 communes: Truong Tho, My Long Nam, 02B 0003 Ly Van Lam street, Ward 1, Ca Mau city, Ca Mau 327,666 Thuan Hoa, Nhi Truong, Long Son, Hiep My Đong, Hiep My province. Tay, Thanh Hoa Son, Cau Ngang district, Tra Vinh province. Package 16W: Construction of transmission lines and CÔNG TY TNHH ĐIỆN THƯƠNG MẠI TÂN THÁI substations for 8 communes: Luu Nghiep Anh, Thanh Son, 02B 0004 DƯƠNG-228 Cong Quynh street, District 1, Ho 282,425 Kim Son, Đon Chau, Ham Giang, Đon Xuan, Đai An, Đinh Chi Minh City. An, Tra Cu district, Tra Vinh province. CÔNG TY TNHH MỘT THÀNH VIÊN CƠ KHÍ Package 17W: Construction of transmission lines and KIÊN GIANG-181 Cach Mang Thang Tam street, 02B 0005 473,191 substations for Duyen Hai district, Tra Vinh province. Vinh Loi ward, Rach Gia city, Kien Giang province. Package 20W: Construction of transmission lines and CÔNG TY TNHH ĐIỆN KỸ NGHỆ ĐẠI VIỆT-100G substations for 8 communes: Tai Van, Thanh Thoi An, Vien 02B 0006 Hung Vuong Street, Ward 9, District 5, Ho Chi 315,930 Binh, Thanh Thoi Thuan, Vien An, Ngoc To, Hoa Tu 2 and Minh city. Ngoc Đong, My Xuyen district, Soc Trang province. Package 22W: Construction of distribution lines and CÔNG TY TNHH ĐIỆN THƯƠNG MẠI TÂN THÁI 02B 0007 substations for 2 Communes: Ke Thanh, An My and Ke DƯƠNG-228 Cong Quynh street, District 1, Ho 295,910 Sach Town, Soc Trang province. Chi Minh City. JV Công ty TNHH Xây dựng Điện BK and Công ty Package 24W: Construction of distribution lines and TNHH Điện Kỹ nghệ Đại Việt-4A Yet Kieu, My 02B 0008 substations for 4 communes: Vinh Tan, Lai Hoa, Vinh 382,105 Binh Ward, Long Xuyen Town, An Giang Phuoc, Vinh Hiep, Vinh Chau district, Soc Trang province. province. JV Công ty Cổ phần Cơ khí và Xây lắp Lâm Đồng Package 26W: Construction of distribution lines and and Công ty Cổ phần Xây lắp An Nhơn-Road 20, 02B 0009 substations for 4 Communes: Long Phu, Tan Hung, Tan 491251 Trung Hiep, Hiep An, Duc Trong District, Lam Thanh and Truong Khanh, Long Phu district, Soc Trang. Dong province.

36 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02B 0010 Package 28W: Construction of distribution lines and JV Công ty Cổ phần Cơ khí và Xây lắp Lâm Đồng 376,934 substations for 3 Communes: An Ninh, An Hiep and Phu and Công ty Cổ phần Xây lắp An Nhơn-Road 20, Tan, My Tu district, Soc Trang province. Trung Hiep, Hiep An, Duc Trong District, Lam Dong province. 02B 0011 Package 30W: Construction of distribution lines and CÔNG TY TNHH MỘT THÀNH VIÊN CƠ KHÍ 330,425 substations for 5 Communes: My Huong, Phu My, Thuan KIÊN GIANG-181 Cach Mang Thang Tam street, Hung, My Thuan, My Tu, My Tu District, Soc Trang. Vinh Loi ward, Rach Gia city, Kien Giang province. 02B 0012 Package 31W: Construction of distribution lines and JV Công ty Cổ phần Cơ khí và Xây lắp Lâm Đồng 391,321 substations for Thanh Tri district, Soc Trang province. and Công ty Cổ phần Xây lắp An Nhơn-Road 20, Trung Hiep, Hiep An, Duc Trong District, Lam Dong province. 02B 0013 Package 1G: Supply of Conductors. Thinh Phat Real Estate-Cables Joint Stock 2,231,071 Company. 02B 0014 Package 2G: Supply of Distribution Transformer. Electrical Equipment Joint Stock Company 974,920 (Thibidi). 02B 0015 Package 5G: Supply of LV distribution boards. Viet A Investment Commercial Industrial Group 257,427 Holdings Company. 02B 0016 Lot 6G.5: Supply of meter boxes for Tra Vinh. Thinh Phat Real Estate-Cables Joint Stock 580,438 Company. 02B 0017 Lot 6G.6: Supply of meter boxes for Soc Trang. Dai Long Trading Manufacture Electric Wire & 480,983 Cable Ltd. 02B 0018 Lots 6G.7 & 6G.8: Supply of fittings and accessories for Tra Joint Venture of Thai Duong Electric Construction 801,738 Vinh and Soc Trang. Co., Ltd and Southern Trading and Production Electrical Equipment Company (EMN). 02B 0019 Package 4G: Supply of Insulators. Ngan Giang Co., Ltd. 150,603 02B 0020 Package 3G: Supply of MV overhead line equipment. Tuan An Electrical Equipment JSC. 75,572 02B 0021 Lots 6G.3 & 6G.4Supply of meter boxes. Viet A Investment Commercial Industrial Group 214,270 Holdings Company. 02B 0022 Package 8W: Construction of transmission lines and CÔNG TY CỔ PHẦN XÂY DỰNG ĐIỆN VNECO 376,291 substations for Chau Thanh district, Tra Vinh province. 10 -Precinct 6, Quang Dieu Ward, Quy Nhon city, Binh Dinh province. 02B 0023 Package 13W: Construction of transmission lines and CÔNG TY TNHH MIỀN TÂY-79/29 Pham Thai 231,532 substations for 6 communes: Hieu Trung, Hieu Tu, Tap Buong street, Ward 4, Vinh Long city, Vinh Long Ngai, Phu Can, Long Thoi, Ngai Hung, Tieu Can district, Tra province. Vinh province.

Appendix 8 37

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02B 0024 Package 10W: Construction of distribution lines and JV Công ty TNHH Miền Tây and Công ty TNHH 364,472 substations for 5 communes: Chau Dien, Hoa Tan, Hong Xây lắp Điện Sông Bé Electric-79/29 Pham Thai Thanh, Phong Phu, Ninh Thoi, Cau Ke district, Tra Vinh Buong Street, Ward 4, Vinh Long City, Vinh Long province. province. 02B 0025 Package 11W: Construction of distribution lines and Công ty TNHH MTV Cơ Khí Kiên Giang-181 Cach 310,735 substations for 5 Communes: Vinh Kim, Kim Hoa, My Long Mang Thang Tam, Vinh Loi Ward, Rach Gia City, Bac, My Hoa, Hiep Hoa, Cau Ngang district, Tra Vinh Kien Giang province. province. 02B 0026 Package 14W: Construction of distribution lines and JV Công ty TNHH Miền Tây and Công ty TNHH 251,119 substations for 3 communes: Tan Hoa, Tan Hung, Hung Xây lắp Điện Sông Bé Electric-79/29 Pham Thai Hoa, Tieu Can district, Tra Vinh province. Buong Street, Ward 4, Vinh Long City, Vinh Long province. 02B 0027 Package 15W: Construction of distribution lines and JV Công ty TNHH Miền Tây and Công ty TNHH 272,564 substations for 8 communes: Phuoc Hung, Tap Son, Tan Xây lắp Điện Sông Bé Electric-79/29 Pham Thai Son, Tan Hiep, An Quang Huu, Long Hiep, Ngai Xuyen, Buong Street, Ward 4, Vinh Long City, Vinh Long Ngoc Bien, Tra Cu district, Tra Vinh province. province. 02B 0028 Package 19W: Construction of distribution lines and Công ty Cổ phần Dịch vụ Xây lắp Hạ Tầng-19 245,008 substations for Cu Lao Dung district and Soc Trang City, Huynh Khuong An Street, Ward 3, Vung Tau City, Soc Trang province. Ba Ria - Vung Tau province. 02B 0029 Package 21W: Construction of distribution lines and JV Công ty TNHH Miền Tây and Công ty TNHH 279,099 substations for 5 communes: Chau Dien, Hoa Tan, Hong Xây lắp Điện Sông Bé Electric-79/29 Pham Thai Thanh, Phong Phu, Ninh Thoi, Cau Ke district, Tra Vinh Buong Street, Ward 4, Vinh Long City, Vinh Long province. province. 02B 0030 Package 23W: Construction of distribution lines and Công ty TNHH Xây dựng Điện BK-4A Yet Kieu, 211,911 substations for 4 communes: Trinh Phu, Dai Hai, Thoi An My BinhWard, Long Xuyen Town, An Giang Hoi and Lac Tay, Ke Sach district, Soc Trang province. province. 02B 0031 Package 25W: Construction of distribution lines and Công ty Cổ phần Xây lắp Điện Bạc Liêu-284 Tran 425,523 substations for 5 Communes: Vinh Chau, Lac Hoa, Vinh Phu Street, Ward 7, Bac Lieu City, Bac Lieu Hai, Hoa Dong, Khanh Hoa, and Vinh Chau Town, Soc province. Trang. 02B 0032 Package 27W: Construction of distribution lines and Công ty Cổ phần Xây lắp Điện Cần Thơ-95A Le 370,298 substations for 4 Communes and 1 Town: Trung Binh, Lich Hong Phong, Tra Giang Ward, Binh Thuy district, Hoi Thuong, Dai An 2, Lien Tu and Long Phu Twon, Long Can Tho City. Phu district, Soc Trang province. 02B 0033 Package 29W: Construction of distribution lines and JV Công ty TNHH Xây dựng Điện Minh Sang and 405,125 substations for 4 communes: Phu Tam, Thien My, Ho Dac Công ty Cổ phần đầu tư & Xây dựng Thiên Danh Kien, Thuan Hoa, My Tu district, Soc Trang province. An-30 Hoa Long I, An Chau Town, Chau Thanh district, An Giang province.

38 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02B 0034 Package 32W: Construction of distribution lines and JV Công ty TNHH Xây dựng Điện Minh Sang and 233,196 substations for Nga Nam district, Soc Trang province. Công ty Cổ phần đầu tư & Xây dựng Thiên Danh An-30 Hoa Long I, An Chau Town, Chau Thanh district, An Giang province. 02B 0035 Package 18W.1: Construction of household connection for JV Công ty Cổ phần Cơ khí và Xây lắp Lâm Đồng 477,777 Cau Ke and Tieu Can district, Tra Vinh province. and Công ty Cổ phần Xây lắp An Nhơn-Road 20, Trung Hiep, Hiep An, Duc Trong district, Lam Dong province. 02B 0036 Package 18W.2: Construction of household connection for Công ty TNHH MTV Cơ Khí Kiên Giang-181 Cach 437,531 Cang Long, Chau Thanh and Duyen Hai district, Tra Vinh Mang Thang Tam, Vinh Loi Ward, Rach Gia City, province. Kien Giang province. 02B 0037 Package 18W.3: Construction of household connection for Công ty Cổ phần Xây lắp Điện Cà Mau-10 Ly Van 364,640 Tra Cu and Cau Ngang district, Tra Vinh province. Nham Street, Ward 1, Ca Mau City, Ca Mau province. 02B 0038 Package 33W.1: Construction of household connection for Công ty Cổ phần Xây lắp Điện Bạc Liêu-284 Tran 324,464 Long Phu, Cu Lao Dung, Ke Sach district and Soc Trang Phu Street, Ward 7, Bac Lieu City, Bac Lieu city, Soc Trang province. province. 02B 0039 Package 33W.2: Construction of distribution lines and JV Công ty TNHH Xây dựng Điện Minh Sang and 301,309 substations for Nga Nam district, Soc Trang province. Công ty TNHH Điện kỹ nghệ Đại Việt-30 Hoa Long I, An Chau Town, Chau Thanh district, An Giang province. 02B 0040 Package 33W.3: Construction of household connection for Công ty Cổ phần Xây lắp Điện Cần Thơ-95A Le 342,912 Vinh Chau and My Xuyen district, Soc Trang province. Hong Phong, Tra Giang Ward, Binh Thuy district, Can Tho City. 02B 0041 Package 7G: Supply of Single phase watt-hour meters. Shenzhen Star Instrument Co., Ltd 388,459 02A 0042 NPC-ADB/G01: Procurement and transportation of Công ty Cổ phần tập đoàn Hanaka. 763,661 transformers. 02A 0043 NPC-ADB/G04: Procurement and transportation of LV, MV Công ty Cổ phần dây và cáp điện Việt Nam. 1,642,944 conductors. 02A 0044 NPC-ADB/G05-LOT2: Procurement and transportation of Tổng công ty CP thiết bị điện Việt Nam. 205,717 meters for Dien Bien, Lai Chau. 02A 0045 EVNNPC-ADB ĐB-W8.1 Construction of power network for Cong ty TNHH Duyen Ha. 367,140 Dien Bien district and Dien Bien Phu City. 02A 0046 EVNNPC-ADB LC-W8.4: Construction of power network for LD Cong ty CPĐT xay lap va thuong mai Tan Viet 647,800 Tan Uyen district - 8.4a - Muong Khoa commune. va Cong ty CPĐT xay dung va thuong mai Ngoc Anh. 02A 0047 EVNNPC-ADB LC-W8.4: Construction of power network for LD Cong ty CPĐT xay lap va thuong mai Tan Viet 194,021 Tan Uyen district - 8.4c - Trung Dong, Ho Mit, Pac Ta va Cong ty CPĐT xay dung va thuong mai Ngoc commune. Anh.

Appendix 8 39

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02A 0048 EVNNPC-ADB LC-W8.5: Construction of power network for Cong ty co phan dau tu TM&XL dien Hung Phu. 100,326 Than Uyen district - 8.5e - Phuc Than commune. 02A 0049 EVNNPC-ADB LC-W8.6: Construction of power network for Cong ty TNHH Thai Thanh. 61,670 Muong Te and Phong Tho district - 8.6b - Ban Lang commune, Phong Tho district. 02A 0050 EVNNPC-ADB LC-W8.8: Construction of power network for Cong ty co phan dau tu TM&XL dien Hung Phu. 134,103 Tam Duong district - 8.8b - Son Binh, Ban Bo, Giang Ma commune, Tam Duong district. 02A 0051 EVNNPC-ADB LC-W8.4: Construction of power network for LD Cong ty CPĐT xay lap va thuong mai Tan Viet 79,819 Tan Uyen district - 8.4b - Tan Uyen town. va Cong ty CPĐT xay dung va thuong mai Ngoc Anh. 02A 0052 EVNNPC-ADB LC-W8.4: Construction of power network for LD Cong ty CPĐT xay lap va thuong mai Tan Viet 507,386 Tan Uyen district - 8.4d - Nam So commune. va Cong ty CPĐT xay dung va thuong mai Ngoc Anh. 02A 0053 EVNNPC-ADB LC-W8.6: Construction of power network for Cong ty co phan xay lap cong trinh 478. 511,927 Muong Te and Phong Tho district - 8.6a - Bum Nua, Muong Te commune, Muong Te district. 02A 0054 EVNNPC-ADB ĐB-W8.7: Construction of power network for Cong ty co phan dau tu va xay lap Song Da. 222,174 Muong Cha district - 8.7e - Muong Tung commune. 02A 0055 EVNNPC-ADB ĐB-W8.7: Construction of power network for Cong ty co phan dau tu va xay lap Song Da. 400,784 Muong Cha district - 8.7b - Na Sang commune. 02A 0056 EVNNPC-ADB ĐB-W8.7: Construction of power network for Cong ty co phan dau tu va xay lap Song Da. 490,425 Muong Cha district - 8.7d - Ma Thi Ho commune 02A 0057 EVNNPC-ADB ĐB-W8.7: Construction of power network for Cong ty co phan TM&XL dien Tuan Giao. 422,583 Muong Cha district - 8.7f - Xa Tong, Pa Ham commune 02A 0058 EVNNPC-ADB ĐB-W8.6: Construction of power network for Cong ty TNHH Duyen Ha. 441,114 Muong Nhe district - 8.6f- Pa Tan, Sen Thuong, Nam Vi commune 02A 0059 EVNNPC-ADB ĐB-W8.2 Construction of power network for Cong ty co phan thuong mai va xay dung Ba Dinh. 197,004 Tuan Giao district 02A 0060 EVNNPC-ADB ĐB-W8.3 Construction of power network for Cong ty TNHH Duyen Ha. 264,817 Dien Bien Dong district-Dien Bien Dong town, Noong U commune. 01B 0061 19-AR: Construction of head works JV Song Da 9.01 SJC - Song Da 505 JSC. 784,881 02A 0062 EVNNPC-ADB LC-W8.5: Construction of power network for Cong ty TNHH xay lap PEC. 90,096 Than Uyen district - 8.5a - Muong Than commune.

40 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02A 0063 EVNNPC-ADB LC-W8.5: Construction of power network for Cong ty TNHH Duyen Ha. 290,879 Than Uyen district - 8.5b - Ta Mung, Muong Kim, Ta Gia commune. 02A 0064 EVNNPC-ADB LC-W8.5: Construction of power network for Cong ty TNHH Duyen Ha. 917,649 Than Uyen district - 8.5d - Ta Hua commune. 02A 0065 EVNNPC-ADB LC-W8.7: Construction of power network for Cong ty Co phan dau tu xay dung va thuong mai Sin Ho district - 8.7a - Nam Ban commune, Sin Ho district Binh Minh. - 02A 0066 EVNNPC-ADB LC-W8.7: Construction of power network for Cong ty Co phan dau tu xay dung va thuong mai 311,880 Sin Ho district - 8.7b - Hong Thu, Ta Phin, Chan Nua Binh Minh. commune, Sin Ho district. 02A 0067 EVNNPC-ADB LC-W8.7: Construction of power network for Cong ty Co phan dau tu xay dung va thuong mai 787,141 Sin Ho district - 8.7c - Phin Ho, Ta Ngao, Nam Cha, Nam Binh Minh. Cuoi, Nam Han commune, Sin Ho district. 02A 0068 EVNNPC-ADB ĐB-W8.3 Construction of power network for Cong ty TNHH Duyen Ha. 292,456 Dien Bien Dong district-Dien Bien Dong town, Noong U commune 8.3c - Pu Nhi commune. 02A 0069 EVNNPC-ADB ĐB-W8.4: Construction of power network for Cong ty TNHH Duyen Ha. 557,318 Tua Chua district 02A 0070 EVNNPC-ADB ĐB-W8.5: Construction of power network for Cong ty TNHH Thai Thanh. 94,577 Tua Chua district. 02A 0071 EVNNPC-ADB ĐB-W8.6: Construction of power network for Cong ty TNHH Duyen Ha. 528,294 Muong Nhe district-8.6a - Cha Cang, Muong Nhe commune 02A 0072 EVNNPC-ADB ĐB-W8.6: Construction of power network for Cong ty TNHH Duyen Ha. 345,650 Muong Nhe district - 8.6b - Na Bung commune. 02A 0073 EVNNPC-ADB ĐB-W8.6: Construction of power network for Cong ty TNHH Duyen Ha. 924,864 Muong Nhe district - 8.6c - Na Khoa, Pa My and Quang Lam commune 02A 0074 EVNNPC-ADB ĐB-W8.6: Construction of power network for Cong ty TNHH Duyen Ha. 399,431 Muong Nhe district - 8.6e- Muong Tong, Na Hy, Nam Ke commune. 02A 0075 EVNNPC-ADB LC-W8.8: Construction of power network for Cong ty Co phan dau tu xay dung va thuong mai 370,338 Tam Duong district - 8.8a - Ban Hon, Khun Ha, Ban Giang, Binh Minh. Ta Leng, Nung Nang commune, Tam Duong district. 02A 0076 EVNNPC-ADB ĐB-W8.3 Construction of power network for LD Cong ty CPĐT xay lap va thuong mai Tan Viet 478,651 Dien Bien Dong district-Dien Bien Dong town, Noong U va Cong ty CPĐT xay dung va thuong mai Ngoc commune - 8.3b - Pu Hong and Phi Nhu commune. Anh. 02A 0077 EVNNPC-ADB ĐB-W8.6: Construction of power network for Cong ty TNHH Duyen Ha. 705,600 Muong Nhe district - 8.6d - Sin Thau, Chung Chai commune.

Appendix 8 41

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02A 0078 EVNNPC-ADB ĐB-W8.7: Construction of power network for Doanh nghiep xay dung tu nhan so 11. 399,967 Muong Cha district - 8.7a - Hua Ngai commune 02A 0079 EVNNPC-ADB ĐB-W8.7: Construction of power network for Cong ty co phan dau tu va xay lap Song Da. 293,023 Muong Cha district - 8.7c - Sa Long, Si Pa Phin commune 02A 0080 NPC-ADB/G05-LOT1: Procurement and transportation of Công ty CP thương mại quốc tế Đại Hoàng Minh. 132,581 meter boxes for Dien Bien, Lai Chau 02A 0081 NPC-ADB/G02: Procurement and transportation of switching AIT -EIE Consortium. 236,470 and protection equipment, cubicles 01B 0082 10-AR: Construction of road to powerhouse (Section 2) JV No.564 Construction Co - No. 412 Investment 1,086,951 and Construction JSC. 01B 0083 20-AR: Construction of water tunnel Consulting Construction and Electric power 1,143,075 Development JSC. 02C 0084 CPC-ADB-QT-W01, LOT 1.1: Construction of lines and JV An Ngai Mechanical and Construction JS Co. 666,985 substations for Huong Son, Huong Loc commune, Huong and Thai Binh Duong JS Co. Hoa district and Hai Thien, Hai Thanh commune, Hai Lang district, Quang Tri province 02C 0085 CPC-ADB-QT-W01, LOT 1.2: Construction of lines and Quang Tri Electrical Equipment Investment and 172,311 substations for Gio Binh, Linh Thuong, Vinh Truong, Gio Mai Construction one-member Co., Ltd. commune, Gio Linh town, Gio Linh district, Vinh Linh and Cam Lo district, Quang Tri province 02C 0086 CPC-ADB-QT-W01, LOT 1.3: Construction of lines and Phuong Minh Joint Stock Company. 218,224 substations for Hai Ba commune, Hai Lang district, Quang Tri province. 02C 0087 CPC-ADB-TTH-W02, LOT 2.1: Construction of lines and JV An Ngai Mechanical and Construction JS Co. 1,091,858 substations for Phu Vang district, Hue City, and and Thai Binh Duong JS Co. interconnecting lines between districts of Thua Thien Hue province. 02C 0088 CPC-ADB-TTH-W02, LOT 2.2: Construction of lines and Dong Ha Electric Construction JS Company. 208,514 substations for Quang Dien, Phu Loc district, Thua Thien Hue province. 02C 0089 CPC-ADB-TTH-W02, LOT 2.3: Construction of lines and Duy Phat Construction Trade Company Ltd. 167,962 substations for Huong Thuy, Nam Dong district, Thua Thien Hue province 02C 0090 CPC-ADB-QN-W01: Construction of lines and substations JV Tan Binh Company Ltd. and Nhat Huy 599,420 for Thang Binh, Duy Xuyen district, Quang Nam province. Commercial and construction Company., Ltd.

02C 0091 CPC-ADB-QNg-W01, LOT 1.1: Construction of lines and Quang Nam Electric Construction JS Co. 569,872 substations for Duc Pho, Ba To district, Quang Ngai province.

42 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02C 0092 CPC-ADB-QNg-W01, LOT 1.2: Construction of lines and Thuan An Construction Company. 502,182 substations for Tay Tra, Minh Long, Mo Duc, Nghia Hanh, Son Ha district, Quang Ngai province. 02C 0093 CPC-ADB-QNg-W01, LOT 1.3: Construction of lines and Quang Ngai industrial construction Company., Ltd 526,858 substations for Binh Son, Son Tinh, Tu Nghia district, Quang Ngai city, Quang Ngai province. 02C 0094 CPC-ADB-GL-W01, LOT 1.1: Construction of lines and Binh Minh Commercial and investment 357,553 substations for Chu Se district, Gia Lai province. Construction JS Company 02C 0095 CPC-ADB-GL-W01, LOT 1.2: Construction of lines and Mai Phuong Company Ltd. 426,759 substations for Chu Pah district, Gia Lai province. 02C 0096 CPC-ADB-GL-W01, LOT 1.3: Construction of lines and Nha Trang Centrifugal Concrete joint stock 489,186 substations for Phu Thien, Ayunpa district, Gia Lai province. Company. 02C 0097 CPC-ADB-QT-W02, LOT 2.1: Construction of lines and Ha Giang Phuoc Tuong Mechanical JSC. 435,316 substations for Huong Lap, Huong Phung, Thanh, Huc, Huong Tan commune, Huong Hoa district, Quang Tri province. 02C 0098 CPC-ADB-QT-W02, LOT 2.2: Construction of lines and VNECO No. 7 Electricy construction JS Company. 275,426 substations for Trung Hai, Trung Giang, Trung Son commune, Gio Linh district, Quang Tri province. 02C 0099 CPC-ADB-QT-W02, LOT 2.3: Construction of lines and Dong Ha Electric Construction JS Company. 382,286 substations for Hai Vinh, Hai Truong commune, Hai Lang district, Quang Tri province. 02C 0100 CPC-ADB-TTH-W01, LOT 1.1: Construction of lines and JV between Hoang Viet Co., Ltd and Hung Thinh 289,641 substations for Phong Dien district, Thua Thien Hue Phat Electrical construction Co., Ltd. province. 02C 0101 CPC-ADB-TTH-W01, LOT 1.2: Construction of lines and Thuan An Construction Company. 44,247 substations for Huong Tra, A luoi district, Thua Thien Hue province. 02C 0102 CPC-ADB-QN-W02, LOT 2.1: Construction of lines and JV between Quang Nam Electric Construction JS 965,634 substations for Dien Ban, Dai Loc, Nong Son, Que Son Co and Electrical Construction and installed district, Quang Nam province. machine JS Company. 02C 0103 CPC-ADB-QN-W02, LOT 2.2: Construction of lines and JV Tan Binh Company Limitted and Nhat Huy 352,092 substations for Phu Ninh, Nui Thanh, Hiep Duc district, Commercial and construction Company., Ltd. Quang Nam province. 02C 0104 CPC-ADB-GL-W02, LOT 2.1: Construction of lines and Tien Phat Company., Ltd. 496,404 substations for Dak Po, An Khe district, Gia Lai province.

Appendix 8 43

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02C 0105 CPC-ADB-GL-W02, LOT 2.2: Construction of lines and JV between Quang Nam Electric Construction JS 342,278 substations for Ia Grai, Duc Co district, Gia Lai province Co and Electrical Construction and installed machine JSC. 02C 0106 CPC-ADB-GL-W02, LOT 2.3: Construction of lines and An Thuan JSC. 432,352 substations for Dak Doa, Chu Prong district, Gia Lai province. 02C 0107 CPC-ADB-GL-W02, LOT 2.4: Construction of lines and An Thuan JSC. 383,332 substations for Ia Pa, Mang Yang, Krong Pa, Kon Chro district, Gia Lai province. 02A 0108 NPC-ADB/G03: Procurement and transportation of AIT- TAILUN Consortium. 603,515 insulators and MV accessories. 01B 0109 23-AR: Installation and fabrication of hydro-mechanical part. LILAMA 45.4 JSC. 899,802 02C 0110 Lot 01 - G01, Lot 02 - G01, Lot 03-G01: Supply of MV&LV Đai Long Conductors Commercial Production Co., 3,603,794 conductors for Quang Tri - Thua Thien Hue province. Ltd.

02C 0111 CPC-ADB-MV-G02: Supply of MV insulators. Minh Long 2 porcelain Co.,Ltd 281,508 02C 0112 CPC-ADB-MV-G03: Supply of distribution transformers. HANAKA group JSC. 998,856 02C 0113 CPC-ADB-MV-G04: Supply of switching equipment. Đong Hung JSC. 49,083 02C 0114 CPC-ADB-MV-G05: Supply of LV distribution boards. Viet Nam Electric Equipment JS Co. 187,600 02C 0115 Lot 01 - G06: Supply of power meter. Viet Nam Electric Equipment JS Co. 538,730 02C 0116 Lot 02 - G06: Supply of power meter boxes. Viet A Commercial investment group JSC. 198,566 02C 0117 Lot 03 - G06: Supply of power meter cable. Viet Han Corp. 250,474 01B 0118 16-AR: Supply of mechanical hydraulic equipment, electrical Zhejiang Lihai Zhefu Electric Machinery Co., Ltd. 1,262,076 equipment in powerhouse. 02A 0119 NPC-ADB/G01-AF: Procurement and transportation of Công ty chế tạo điện cơ Hà Nội. 252,255 transformers 02A 0120 NPC-ADB/G02-AF: Procurement and transportation of GELEX-AIT Consortium 131,769 Switching and protection equipment, Cubicles 02A 0121 NPC-ADB/G04-AF: Procurement and transportation of GELEX 154,946 meters and meter boxes. 01B 0122 22-AR: Construction of Bot Do - Huong Lam 35kV line. An Ngai Mechanical and Construction JSC. 337,833 02A 0123 EVNNPC-ADB LC W06 - AF: Construction of power network Cong ty TNHH vat tu xay lap dien Vu Yen. 305,373 for Muong Te district - 6a.AF - Nam Hang commune. 02A 0124 EVNNPC-ADB LC W06 - AF: Construction of power network Cong ty TNHH Thien Xung. 480,548 for Muong Te district - 6b.AF - Nam Manh, Kan Ho, Hua Bum, Bum To commune.

44 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02A 0125 EVNNPC-ADB LC W06 - AF: Construction of power network Cong ty co phan xay dung cong nghiep Toan 134,063 for Muong Te district - 6c.AF - Pa Ve Su commune. Phat. 02A 0126 EVNNPC-ADB LC W06 - AF: Construction of power network Cong ty co phan xay lap cong trinh 478. 501,321 for Muong Te district - 6d.AF - Ta Tong commune. 02A 0127 EVNNPC-ADB LC W06 - AF: Construction of power network Cong ty co phan dau tu va phat trien Binh Minh. 361,870 for Muong Te district - 6e.AF - Pa U, Thu Lum commune. 02A 0128 EVNNPC-ADB LC W06 - AF: Construction of power network Lien danh cong ty TNHH Minh Thanh & Cong ty 440,565 for Muong Te district - 6f.AF - Mu Ca commune. CP tu van xay dung Thanh Dat. 02A 0129 EVNNPC-ADB LC W06 - AF: Construction of power network Cong ty co phan dau tu xay dung Ha Tang Ha 323,845 for Muong Te district - 6g.AF - Ka Lang commune. Noi. 02A 0130 EVNNPC-ADB LC W07 - AF: Construction of power network Cong ty TNHH dau tu va xay lap Truong Son. 406,603 for Tan Uyen and Than Uyen districts - 7a.AF - Khoen On, Muong Cang commune, Than Uyen district. 02A 0131 EVNNPC-ADB LC W07 - AF: Construction of power network Cong ty co phan xay dung & thuong mai Thai 134,519 for Tan Uyen and Than Uyen districts - 7b.AF - Muong Hung. Than, Phuc Than, Muong Mit commune, Than Uyen district. 02A 0132 EVNNPC-ADB LC W07 - AF: Construction of power network Cong ty co phan xay dung & dich vu Nhan My. 147,790 for Tan Uyen and Than Uyen districts - 7c.AF - Pac Ta, Ho Mit commune, Tan Uyen district. 02A 0133 EVNNPC-ADB LC W07 - AF: Construction of power network Cong ty co phan dau tu xay lap & Thuong mai Tan 672,264 for Tan Uyen and Than Uyen districts -7e.AF - Ta Mit Viet. commune, Tan Uyen district. 02A 0134 EVNNPC-ADB LC W07 - AF: Construction of power network Lien danh cong ty TNHH phat trien cong nghe he 594,748 for Tan Uyen and Than Uyen districts - 7f.AF - Trung Dong, thong & Cong ty co phan đau tu & phat trien Ha Than Thuoc, Muong Khoa commune, Tan Uyen district. tang. 02A 0135 EVNNPC-ADB LC W07 - AF: Construction of power network Cong ty TNHH Duyen Ha. 776,920 for Tan Uyen and Than Uyen districts- 7g.AF - Nam So commune, Tan Uyen district. 02A 0136 EVNNPC-ADB ĐB W06 - AF: Construction of power network Cong ty co phan TM&XL dien Tuan Giao. 324,759 for Muong Nhe district - 6b.AF - Na Khoa commune. 02A 0137 EVNNPC-ADB ĐB W06 - AF: Construction of power network Cong ty TNHH tu van & xay dung Hung Thinh. 151,738 for Muong Nhe district - 6e.AF - Pa My commune. 02A 0138 EVNNPC-ADB ĐB W06 - AF: Construction of power network Cong ty TNHH tu van & xay dung Hung Thinh. 179,006 for Muong Nhe district - 6f.AF - Nam Ke commune. 02A 0139 EVNNPC-ADB ĐB W06 - AF: Construction of power network Cong ty TNHH Duyen Ha. 425,990 for Muong Nhe district- 6g.AF - Na Co Sa commune.

Appendix 8 45

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02A 0140 EVNNPC-ADB ĐB W06 - AF: Construction of power network Cong ty TNHH Duyen Ha. 515,126 for Muong Nhe district - 6h.AF - Leng Su Sin, Sin Thau commune. 01B 0141 21-AR: Construction of penstock, powerhouse and Construction JSC No.47. 1,118,823 distribution substation. 02A 0142 EVNNPC-ADB ĐB W06 - AF: Construction of power network Lien danh cong ty TNHH Ha Duong & Cong ty 303,655 for Muong Nhe district - 6a.AF - Cha Cang, Pa Tan TNHH Thanh Quy. commune. 02A 0143 EVNNPC-ADB ĐB W06 - AF: Construction of power network Cong ty co phan TM&XL dien Tuan Giao. 281,441 for Muong Nhe district - 6c.AF - Na Hy commune. 02A 0144 EVNNPC-ADB ĐB W06 - AF: Construction of power network Cong ty co phan dau tu va xay lap Song Da. 354,361 for Muong Nhe district - 6d.AF - Na Bung commune. 02A 0145 Construction and rehabilitation of power Network of Nam Công ty cố phần đầu tư Xay dựng và Thương 29,029 Ban and Ma Quai, Lai Chau. Mại. 02A 0146 NPC-ADB/G03-AF.LOT2: Procurement and transportation of LS Vina. 622,277 LV, MV conductors. 02A 0147 NPC-ADB/G03-AF.LOT1: Procurement and transportation of AIT-CME Consortium 387,695 MV insulators and accessories. 02B 0148 Lot: P2-5W.1: Construction of lines, substation and poles of JV Công ty TNHH Miền Tây and Công ty TNHH 307,300 household connection for Cang Long district, Tra Vinh Xây lắp Điện Sông Bé Electric-79/29 Pham Thai province. Buong Street, Ward 4, Vinh Long City, Vinh Long province. 02B 0149 Lot: P2-5W.2: Construction of lines, substation and poles of Công ty Cổ phần Cơ khí và Xây lắp Lâm Đồng - 368,677 household connection for Chau Thanh district, Tra Vinh Road 20, Trung Hiep, Hiep An, Duc Trong district, province. Lam Dong province.

02B 0150 Lot: P2-5W.3: Construction of lines, substation and poles of JV Công ty TNHH Miền Tây and Công ty TNHH 282,943 household connection for Cau Ke district, Tra Vinh province. Xây lắp Điện Sông Bé Electric-79/29 Pham Thai Buong Street, Ward 4, Vinh Long City, Vinh Long province. 02B 0151 Lot: P2-5W.4: Construction of lines, substation and poles of Liên danh công ty TNHH Xây dựng Điện Minh 331,686 household connection for Cau Ngang district, Tra Vinh Sang và Công ty TNHH Điện Kỹ nghệ Đại Việt-30 province. Hoa Long I, An Chau Town, Chau Thanh district, An Giang province. 02B 0152 Lot: P2-5W.5: Construction of lines, substation and poles of Liên danh Công ty Cổ phần Điện nước Quang 212,553 household connection for Tieu Can district, Tra Vinh Phúc và Công ty Cổ phần Điện Cơ-550 Tran Phu, province.

46 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) Hamlet 4, Ward 7, Tra Vinh city, Tra Vinh province. 02B 0153 Lot: P2-5W.6: Construction of lines, substation and poles of CÔNG TY CỔ PHẦN XÂY LẮP ĐIỆN CÀ MAU-10 308,694 household connection for Tra Cu, Tra Vinh province. Ly Van Lam street, Ward 1, Ca Mau city, Ca Mau province. 02B 0154 Lot: P2-5W.7: Construction of lines, substation and poles of Liên danh Công ty Cổ phần Xây lắp An Nhơn và 451,865 household connection for Duyen Hai district, Tra Vinh Công ty TNHH MTV Đầu tư Xây dựng Vạn province. Tường. 02B 0155 Lot: P2-7W.1: Construction of lines, substation and poles of Công ty Cổ phần Cơ khí và Xây lắp Lâm Đồng - 687,397 household connection for Chau Thanh, Ke Sach and My Tu Road 20, Trung Hiep, Hiep An, Duc Trong district, districts, Soc Trang province. Lam Dong province. 02B 0156 Lot: P2-7W.2: Construction of lines, substation and poles of CÔNG TY CỔ PHẦN XÂY LẮP ĐIỆN CÀ MAU-10 485,915 household connection for Nga Nam and Thanh Tri districts, Ly Van Lam street, Ward 1, Ca Mau city, Ca Mau Soc Trang province. province. 02B 0157 Lot: P2-7W.3: Construction of lines, substation and poles of Công ty Cổ phần Cơ khí và Xây lắp Lâm Đồng - 496,982 household connection for Long Phu and Cu Lao Dung Road 20, Trung Hiep, Hiep An, Duc Trong district, districts, Soc Trang province. Lam Dong province. 02B 0158 Lot: P2-7W.4Construction of lines, substation and poles of CÔNG TY TNHH MỘT THÀNH VIÊN CƠ KHÍ 646,695 household connection for Tran De, Vinh Chau districts and KIÊN GIANG-181 Cach Mang Thang Tam street, Soc Trang city, Soc Trang province. Vinh Loi ward, Rach Gia city, Kien Giang province. 02B 0159 Lot: P2-7W.5: Construction of lines, substation and poles of CÔNG TY TNHH MỘT THÀNH VIÊN CƠ KHÍ 788,608 household connection for My Xuyen district, Soc Trang KIÊN GIANG-181 Cach Mang Thang Tam street, province. Vinh Loi ward, Rach Gia city, Kien Giang province. 01B 0160 24-AR: Installation of mechanical-hydraulic equipment, Dai Han mechanical and fabrication JSC. 98,229 electrical equipment for powerhouse. 02B 0161 Lot P2-1G.1: Conductors. Viet nam Electric Cable Corporation. 1,068,254

02B 0162 Lot P2-1G.2: Pin Insulators, String Insulators, Accessories. Cong ty Co Phan Ky Thuat Thuong Mai E.E. 100,200

02B 0163 Lot P2-1G.3: MV Overhead Line Equipment (LBFCO, FCO, Cong ty Co Phan Ky Thuat Thuong Mai E.E. 69,467 LA, Fuses…) 02B 0164 Package P2-2G: Distribution transformers. Cong ty Co Phan Tap Doan Hanaka. 487,038 02B 0165 Package P2-3G: LV Distribution Boards. Cong ty TNHH Dien Nam Viet. 97,556 01B 0166 18-AR: Supply of materials and equipment distribution Toji Grounp Joint Stock Company. 201,488 station, conductors, insulators and switchgear 35kV line. 01B 0167 17-AR: Supply of Distribution Transformers. Viet nam Electrical equipment manufacturing JSC. 95,364

Appendix 8 47

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02C 0168 Construction of line and substation for Huong Tra, A Luoi Cong ty Co Phan Ky Thuat Thuong Mai E.E. 276,374 districts, Thua Thien Hue province. 02A 0169 EVNNPC-ADB LC-W08,7a,2: Construction of Power Cong ty co phan dau tu xay dung va thuong mai 291,925 Network for Nam Ban, Ma Quai communes - Sin Ho districts Ngoc Anh; Add: 206 Vong Street, Phuong Liet - Lai Chau province. Commune, Thanh Xuan Distric, Ha Noi City 01A 0170 NPC-ADB-NP/W03: Construction of head works, intake gate Toan Phat Construction Industry JSC. 1,257,870 and pipe. Room 10.03B, Building B, Ha Thanh Plaza, 102 Thai Thinh, Trung Liet, Dong Da, Hanoi. 01A 0171 NPC-ADB-NP/W04: Construction power alignment (tunnel Song Da Investment and trading JSC. 1,252,195 and surge tank). Room 10.03B, Building B, Ha Thanh Plaza, 102 Thai Thinh, Trung Liet, Dong Da, Hanoi. 01A 0172 NPC-ADB-NP/W01: Construction of 35kV line, 35/0, 4kV Tuan Giao Trading and electrical construction 169,735 substation for supplying electricity to benefit people. JSC. No.39, Tan Thuy Block, Tuan Giao town, Tuan Giao district, Dien Bien province. 02B 0173 Lot P2-4G.2: Supply of meter boxes. JV E.E Engineering & Treading Joint Stock Co. – 219,538 Nam Viet Electric Co., Ltd. 02B 0174 Lot P2-4G.3: Supply of meter cables, cables for connection Dai Long Trading – Manufacturing Electric Wire & 510,163 upstream meter. Cable Co., Ltd. 02B 0175 Lot P2-4G.4: Supply of fittings for connection upstream Southern Trading and Producing Electrical 473,459 meter. Equipment Company. 01B 0176 Package 03-DPR: Construction of road to operation house. Construction No.564 Co., Ltd 373,838 01B 0177 Package 04-DPR: Construction of head works. JV Irrigation construction 1 Nghe An JSC – 3,477,258 Construction No. 564 Co., Ltd. 01A 0178 Package NPC-ADB-NP/G01: Procurement, installation, Zhejiang Jinlun Electromechanics Co., Ltd; 2,046,646 testing and commissioning: electro-mechanical equipment No.367 Jinyuan Road, Jinhua city, Zhejiang (Turbine and generator), complete electrical equipment in province, P.R. China. the plant, 35/6 kV system, communication system (including technology transfer) and 35/6 kV substation equipment. 01B 0179 Package 08-DPR: Installation and Fabrication of Hydro- Dai Han Mechanical and fabrication JSC. 369,588 Mechanical Part. Road 5, Hoa Cam Industrial Zone, Da Nang city. 01B 0180 Package 06-DPR: Construction of powerhouse and Consulting Construction and Electric power 1,483,004 distribution substation. Development JSC. No.03, 18th August Street, Hoi An town, Quang Nam province. 02C 0181 CPC-ADBAF-QT-W01 - Lot 1.1: Construction of Technological Development System Co. Ltd, 119 236,951 transmission lines and substations for Dak Rong 1 district (A Ho Dac Di Street, Dong Da district, Ha Noi. Vao commune), Quang Tri province.

48 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02C 0182 CPC-ADBAF-QT-W01 - Lot 1.2: Construction of JV Thuan An Construction Company: Lot A10 + 425,598 transmission lines and substations for Dak Rong 2 district A11 Pham Van Dong Street, Nghia Chanh Ward, (Huc Nghi, Ta Long commune), Quang Tri province. Quang Ngai City, Quang Ngai province. 02C 0183 CPC-ADBAF-QT-W01 - Lot 1.3: Construction of JV Thuan An Construction Company: Lot A10 + 501,511 transmission lines and substations for Dak Rong 3 district A11 Pham Van Dong Street, Nghia Chanh Ward, (Ba Nang, Dak Rong, Huong Hiep commune), Quang Tri Quang Ngai City, Quang Ngai province. province. 02C 0184 CPC-ADBAF-QT-W01 - Lot 1.4: Construction of Mai Phuong Co. Ltd: 22 Phu Dong Street, Pleiku 152,946 transmission lines and substations for Dak Rong 4 (Mo O, A City, Gia Lai province. Ngo commune), Huong Hoa district, Quang Tri province. 02C 0185 CPC-ADBAF-QT-W02-Lot 2.1: Construction of transmission Lien Minh Investment and Construction JSC: 01 603,612 lines and substations for Trieu Phong 1 district (Trieu Do, Lane, 13 Dong Que Street, Ha Tinh City, Ha Tinh Trieu Long, Trieu Dong, Trieu Thuan commune), Quang Tri province. province. 02C 0186 CPC-ADBAF-QT-W02-Lot 2.2: Construction of transmission JV Vneco 12 Electricity Construction JSC: 155 Ly 534,373 lines and substations for Trieu Phong 2 district (Trieu Trung, Thuong Kiet Street, Dong Hoi City, Quang Binh Trieu Tai, Trieu Son commune), Quang Tri province. province. 02C 0187 CPC-ADBAF-QT-W02-Lot 2.3: Construction of transmission Duc Bao Kon Tum Electric Construction JSC: 10 568,128 lines and substations for Trieu Phong 3 district (Trieu Thanh, Truong Chinh Str, Kon Tum City, Kon Tum Trieu Hoa, Trieu Trach, Trieu Dai commune), Quang Tri province. province. 02C 0188 CPC-ADBAF-QT-W03-Lot 3.1: Construction of transmission JV An Ngai Mechanics and Construction Joint 333,820 lines and substations for Hai Lang 1 district (Hai Xuan, Hai Stock Company: 06 Nguyen Thuy, Quang Ngai Phu, Hai Thuong, Hai Quy commune), Quang Tri province. city, Quang Ngai Province. 02C 0189 CPC-ADBAF-QT-W03-Lot 3.2: Construction of transmission Tuy Phuoc Binh Dinh Electric Construction JS 374,864 lines and substations for Hai Lang 2 district (Hai Duong, Hai Company: 02 Tan Phu, Tuy Phuoc Town, Tuy Tho, Hai Chanh, Hai Son commune), Quang Tri province. Phuoc district, Binh Dinh province. 02C 0190 CPC-ADBAF-QT-W03-Lot 3.3: Construction of transmission JV Tan Viet Commercial and Construction 403,777 lines and substations for Gio Linh district, Quang Tri Investment JSC: Tan Lap, Thuy Phuong province. Commune, Tu Liem district, Ha Noi city. 02C 0191 CPC-ADBAF-QT-W03-Lot 3.4: Construction of transmission JV Phuong Minh JSC: 16 Thong Nhat, Huong Tra 327,441 lines and substations for Vinh Linh district, Quang Tri Town, Thua Thien Hue province. province. 02C 0192 CPC-ADBAF-QT-W04-Lot 4.1: Construction of transmission Viet Nam Energy Development Construction 127,222 lines and substations for Cam Lo 1 district (Cam Tuyen, Co.Ltd: 6B, Group 28, O Cho Dua Ward, Dong Da Cam Nghia, Cam Thanh, Cam Chinh commune), Quang Tri district, Ha Noi city. town, Quang Tri province.

Appendix 8 49

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02C 0193 CPC-ADBAF-QT-W04-Lot 4.2: Construction of transmission Duy Phat Commercial and construction 250,219 lines and substations for Cam Lo 2 district (Cam Hieu, Cam Company., Ltd: 42 Co Bac Str, Hai Chau 2 Ward, Thuy, Cam An commune), Quang Tri province. Hai Chau district, Da Nang city. 02C 0194 CPC-ADBAF-QN-W01-Lot 1.1: Construction of transmission An Thuan JS Co. :72 Mac Dinh Chi Str, Pleiku 492,474 lines and substations for Dien Ban, Quang Nam province. City, Gia Lai province. 02C 0195 CPC-ADBAF-QN-W01-Lot 1.2: Construction of transmission JV Da Nang Electric Construction JSC: 421 Dien 524,121 lines and substations for Dai Loc, Quang Nam province Bien Phu, Da Nang City 02C 0196 CPC-ADBAF-QN-W01-Lot 1.3: Construction of transmission JV Quang Nam Electric Construction: Thuan Yen 489,359 lines and substations for Duy Xuyen district, Quang Nam Industrial Zone, Tran Phu Str, Tam Ky city, Quang province. Nam province. 02C 0197 CPC-ADBAF-QN-W01-Lot 1.4: Construction of transmission An Nhon Construction JSC: No 662, Tran Phu Str, 137,184 lines and substations for Hoi An City, Quang Nam province. Binh Dinh Ward, An Nhon town, Binh Dinh province. 02C 0198 CPC-ADBAF-QN-W02-Lot 2.1: Construction of transmission JV Da Nang Electric Construction JSC: 421 Dien 619,422 lines and substations for Thang Binh 1 district (Binh Lanh, Bien Phu Str, Hoa Khe Ward, Thanh Khe Dist, Da Binh Tri, Binh Dinh Nam, Binh Dinh Bac, Binh Quy, Binh Nang city. Nguyen commune, Ha Lam town, Binh Que, Binh Phu, Binh Chanh, Binh Tu), Quang Nam province. 02C 0199 CPC-ADBAF-QN-W02-Lot 2.2: Construction of transmission JV Da Nang Electric Construction JSC: 421 Dien 684,443 lines and substations for Thang Binh 2 district (Binh An, Bien Phu, Da Nang City. Binh Minh, Binh Trieu, Binh Phuc, Binh Nam, Binh Hai, Binh Trung, Binh Sa, Binh Giang commune), Quang Nam province. 02C 0200 CPC-ADBAF-QN-W02-Lot 2.3: Construction of transmission JV Quang Nam Electric Construction: Thuan Yen 124,726 lines and substations for Nong Son district, Quang Nam Industrial Zone, Tran Phu Str, Tam Ky city, Quang province. Nam province. 02C 0201 CPC-ADBAF-QN-W03-Lot 3.1: Construction of transmission JV Nha Trang Centrifugal Concrete joint stock 752,978 lines and substations for Que Son district, Quang Nam Company: 07 Hoang Hoa Tham Str, Nha Trang province. city, Khanh Hoa province. 02C 0202 CPC-ADBAF-QN-W03-Lot 3.2: Construction of transmission JV An Ngai Mechanics and Construction Joint 619,956 lines and substations for Hiep Duc district, Quang Nam Stock Company: 06 Nguyen Thuy, Quang Ngai province. city, Quang Ngai province. 02C 0203 CPC-ADBAF-QN-W03-Lot 3.3: Construction of transmission Duy Phuc private business: Yen The ward, Pleiku 163,353 lines and substations for Phuoc Son, Dong Giang, Nam city, Gia Lai province. Giang district, Quang Nam province. 02C 0204 CPC-ADBAF-QN-W04- Lot 4.1: Construction of JV Tan Binh Company Limitted: 385 Phan Chu 552,698 transmission lines and substations for Nui Thanh district, Trinh, Tam Ky City, Quang Nam province. Quang Nam province.

50 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02C 0205 CPC-ADBAF-QN-W04-Lot 4.2: Construction of transmission JV Ba Dinh Trade and Construction Joint Stock 545,200 lines and substations for Phu Ninh district, Quang Nam Company: 415 Doi Can, Ba Dinh district, Ha Noi province. city. 02C 0206 CPC-ADBAF-QN-W04-Lot 4.3: Construction of transmission Southern Trading and Producing Electrical 294,566 lines and substations for Tam Ky city, Quang Nam province. Company. 02C 0207 CPC-ADBAF-QN-W05: Construction of transmission lines JV Nha Trang Centrifugal Concrete joint stock 629,577 and substations for Tien Phuoc, Bac Tra My, Nam Tra My Company: 07 Hoang Hoa Tham Str, Nha Trang district, Quang Nam province. city, Khanh Hoa province 01B 0208 05-DPR: Construction of water tunnel and intake gate for Construction Joint Stock Company 47, 08 Bien 672,406 Dak Pring Hydropower plant. Cuong, Quy Nhon City, Binh Dinh province. 02C 0209 CPC-ADBAF-MV-G02 / Lot 01-G02: Supply of MV insulators Tuan An Electric Equipment JSC. 237,654 and accessories. 02C 0210 CPC-ADBAF-MV-G02 / Lot 02-G02: Supply of switching Dong Hung Industry Joint Stock Company. 36,830 equipment. 02C 0211 CPC-ADBAF-MV-G04: Supply of Watt-hour meter boxes Dai Long Trading Manufacturing Electric Wire and 72,982 and power meter cables. Cable Co., Ltd. 01A 0212 NPC-ADB-NN/W01: Construction of 35kV line, 35/0, 4kV Duyen Ha Limited liability company. 124,206 substation for supplying electricity to benefit people. 01A 0213 NPC-ADB-NN/W02: Construction of 0.4kV line for supplying Duyen Ha Limited liability company. 43,510 electricity to benefit people. 01A 0214 NPC-ADB-NN/W03: Construction of head works, intake gate Toan Phat Construction Industry JSC. 2,202,841 and pipe. 01A 0215 NPC-ADB-NN/W04: Construction power alignment Lung Lo Construction Corporation. 3,263,898 (headrace, works on the headrace and sand flushing gate on the headrace). Road for O&M. 01A 0216 NPC-ADB-NN/W05: Construction of pressure tank, JV Binh Minh Investment and Development JSC 2,394,937 penstock, hydropower plant, tailrace, OPY station, house for and VVV Investment JSC. O&M. 01A 0217 NPC-ADB-SV/W03: Construction of head works. Binh Minh Investment and Development Joint 564,380 Stock Company. 01A 0218 NPC-ADB-NP/W02: Construction of 0.4kV line for supplying Tuan Giao Trading and electrical construction 52,449 electricity to benefit people. JSC. 01A 0219 NPC-ADB-NP/W05: Construction of penstock, valve house, LV Song Da Investment & Construction JSC and 1,397,585 hydropower plant, tailrace, OPY station, house for O&M. VVV Investment JSC. 02C 0220 CPC-ADBAF-MV-G01: Supply of MV and LV conductors. Dai Long Trading Manufacturing Electric Wire and 3,137,883 Cable Co., Ltd.

Appendix 8 51

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 01A 0221 Package NPC-ADB-NN/G01: Procurement, installation, Hunan Allonward Hydro-Generating Equipment 1,579,871 testing and commissioning: hydraulic-mechanic equipment Co., Ltd; (Turbine and generator), completed electrical equipment in Address:6th floor, MO Group, Torch Building, the plant, 35/6 kV system, communication system (including High-tech Development Zone, Changsha City, technology transfer) and equipment of 35/6 kV substation. Hunan province, P.R. China. 02C 0222 CPC-ADBAF-MV-G03: Supply of Distribution Transformers. - Hanoi Transformers and Electrical Equipment 490,540 Manufacturing JSC. Add: Quynh Do Hamlet, Vinh Quynh Commune, Thanh Tri Dist., Ha Noi City - Viet Nam. 01A 0223 NPC-ADB-SV/W01: Construction of 35kV line, 35/0,4kV 478 Construction building Joint Stock Company. 198,830 substation for supplying electricity to benefit people. 01A 0224 NPC-ADB-SV/W02: Construction of 0.4kV line for supplying 478 Construction building Joint Stock Company. 115,979 electricity to benefit people. 01A 0225 NPC-ADB-SV/W04: Supplying and installation of hydro- Binh Minh Investment and Development Joint 1,465,898 mechanical equipment; Construction of penstock, Stock Company. powerhouse, tailrace, OPY station, house for O&M and road for management and operation. 02C 0226 ADB-CPC-TG-MV-AF. G02-L03: Supply of LV Distribution - Truong Giang Electric Joint Stock Company. 75,910 Boards. Add: Lot B, Road No. 9, Hoa Khanh Industrial Zone, Hoa Khanh Bac Ward, Lien Chieu district, Da Nang City - Viet Nam. 02A 0227 NPC-ADB/C1-G05 - Lot 2: Procurement and transportation Cong ty CP TMQT Dai Hoang Minh, No. 38, D6, 143,836 of meter boxes. Hoang Ngan str., Trung Hoa precint, Cau Giay dist., Hanoi 02A 0228 NPC-ADB/C1-G02: Procurement and transportation of Cong ty CP ung dung va phat trien CNTT, No. 153,191 switching and protection equipment, cubicles 2K3 Dam Trai, Phuong Liet precint, Thanh Xuan dist., Hanoi 02B 0229 Lot P3-1G.1: Supply of Conductors. Cong ty TMHH san xuat - thuong mai Tan Nghe 789,265 Nam (Tanghenam Electric Wire & Cable Co., Ltd.), 66A, Area 1, Road 830, Hamlet 3, An Thanh Village, Ben Luc district, Long An province. 02B 0230 Lot P3-1G.2: Supply of Insulators, accessories. Cong ty co phan ky thuat - thuong mai E.E (E.E 62,400 Engineering Trading Stock Co.), 002 Block H1, Building ward 09, Hoang Dieu street, Ward 09, district 04, Ho Chi Minh city. 02B 0231 Lot P3-1G.3: Supply of MV overhead line equipment Cong ty co phan thiet bi dien Tuan An (Tuan An 34,582 (LBFCO, FCO, LA, FUSE...). Electric Equipment Joint-Stock Company) - No. 71 Ten Lua Street, Binh Tri Dong B ward, Binh Tan district, Ho Chi Minh city.

52 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02B 0232 Package P3-2G: Supply of distribution transformers. Cong ty co phan dien co Thuy Lam Viet Nam 244,211 (Rueilin Electrical Engineering Co., Ltd.) - Khu cong nghiep Ho Nai, huyen Trang Bom, Dong Nai. 02B 0233 Package P3-3G: Supply of LV distribution boards. Cong ty TNHH Dien Nam Viet (Nam Viet Electric 58,669 Co., Ltd.) - 414 Hong Bang, phuong 16, quan 11, TP Ho Chi Minh. 02B 0234 Lot P3-4G.1: Supply of meter boxes. Cong ty co phan thiet bi dien Tuan An (Tuan An 101,331 Electric Equipment Joint-Stock Company) - No. 71 Ten Lua Street, Binh Tri Dong B ward, Binh Tan district, Ho Chi Minh city. 02B 0235 Lot P3-4G.2: Supply of meter cables, cables for connection Cong ty TMHH san xuat - thuong mai Tan Nghe 148,504 upstream meters. Nam (Tanghenam Electric Wire & Cable Co., Ltd.), 66A, Area 1, Road 830, Hamlet 3, An Thanh Village, Ben Luc district, Long An province. 02B 0236 Lot P3-4G.3: Supply of fittings for connection upstream Cong ty CP thuong mai san xuat thiet bi dien Mien 255,118 meters. Nam (Southern Trading and Producing Electrical Equipment Company) - 185A, Xa lo Ha Noi, phuong Phuoc Long A, Quan 9, TP HCM. 02A 0237 NPC-ADB/C1-G03: Procurement and transportation of MV Cong ty CP ung dung va phat trien CNTT, No. 341,208 insulators and accessories. 2K3 Dam Trai, Phuong Liet precint, Thanh Xuan dist., Hanoi. 02B 0238 Lot P3-6W.1: Construction of lines, substation and poles of JV: Cong ty Co phan Dien nuoc Quang Phuc, 657,320 household connection for Cang Long, Chau Thanh, Cau ke, Cong ty TNHH Xay lap dien Hung Thinh Phat - Tra Cu districts, Tra Vinh province. 550 Tran Phu Street, Group 4, Ward 7, Tra Vinh city, Tra Vinh province. 02B 0239 Lot P3-6W.2: Construction of lines, substation and poles of Doanh Nghiep Tu Nhan Thai Hai - Thoi hamlet, 700,500 household connection for Duyen Hai, Cau Ngan, Tieu Can Dong Hoa commune, Chau Thanh district, Tien districts, Tra Vinh province. Giang province. 02B 0240 Lot P3-8W.1: Construction of lines, substation and poles of JV: Cong ty Co Phan Xay Lap An Nhon, Cong ty 785,766 household connection for Chau Thanh, Ke Sach, My Tu, Co Phan An Thuan - 662 Tran Phu Street, Binh Nga Nam and Long Phu districts, Soc Trang province. Dinh Ward, An Nhon Town, Binh Dinh province. 02B 0241 Lot P3-8W.2: Construction of lines, substation and poles of JV: Cong ty Co Phan Xay Lap An Nhon, Cong ty 420,644 household connection for Vinh Chau, My Xuyen, Tran De Co Phan An Thuan - 662 Tran Phu Street, Binh districts and Soc Trang city, Soc Trang province. Dinh Ward, An Nhon Town, Binh Dinh province. 02B 0242 Package P3-9W: Construction of lines, substation and poles Cong ty CP Xay lap Dien HongTruong - Block 227,495 of household connection for Cu Lao Dung and Thanh Tri 61A, Industrial group Dinh Van, Dinh Van Town, districts, Soc Trang province. Lam Ha district, Lam Dong province.

Appendix 8 53

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02A 0243 NPC-ADB/C1-G04: Procurement and transportation of MV Cong ty CP dia oc cap dien Thinh Phat, 144A Ho 1,482,311 and LV conductors. Hoc Lam Street, An Lac ward, Binh Tan district, HCMC. 01B 0244 Supply of mechanical hydraulic equipment, electrical - Zhejiang Jinlun Electromechanics Co., Ltd. 1,413,977 equipment in powerhouse for Dak Pring Hydropower Add: No. 367 Jinyuan Road, Jinhua City, Zhejiang Plan. province, P.R China. 02A 0245 NPC-ADB/C1-G05.Lot 1: Procurement and transportation of Cong ty CP thiet bi cong nghiep Huu Hong. 259,689 meters. 02A 0246 NPC-ADB/G03-AF2.Lot 2: Procurement of meters. Cong ty CP thiet bi cong nghiep Huu Hong. 53,831 02A 0247 NPC-ADB/G01-AF2.Lot 1: Procurement of transformers. Hanoi Equipment and Transformer Manufacture 82,668 Joint Stock Company. 02A 0248 NPC-ADB/W3.3LK: Construction of MV, LV networks and LD Công ty TNHH Thành Quý và Công ty TNHH 369,192 substations for Sapa and Bat Sat district, in Lao Cai An Minh province 02A 0249 NPC-ADB/W3.1LK: Construction of MV, LV networks and LD Cty TNHH HBT Toàn Cầu - Cty TNHH Thiên 361,907 substations for Lao Cai city and Muong Khuong Dist, in Lao Xứng. Cai province. 02A 0250 NPC-ADB/W3,2Lk: Construction of MV, LV networks and LD Cty CP DT và XD Công nghiệp VN - Cty CP 515,427 substations for Bao Thang and Bao Yen district, in Lao Cai XL điện máy Hà Tây. province. 02A 0251 NPC-ADB/W3.4LK: Construction of MV, LV networks and LD Cty TNHH Vật tư XL điện Vũ Yến - Cty CP 382,689 substations for Van ban district t, in Lao Cai province. XD&TM Thịnh Thái. 02A 0252 NPC-ADB/W3.1LS: Construction of MV, LV networks and LD Cty CP ĐTXD lắp điện Hải Phòng - Cty CP XL 747,769 substations for Trang Dinh, Loc Binh and Dinh Lap district, điện và ĐTXD Hải Dương - Cty CP XL điện Bắc in Lang Son province. Giang. 02A 0253 NPC-ADB/W3.2LS: Construction of MV, LV networks and LD Cty CP XL Lạng Sơn - Cty TNHH kinh doanh 550,263 substations for Van Quang, Binh Gia and Bac Son districts, và XD công nghiệp HN - Cty CP XL điện Đông Á. in Lang Son province. 02A 0254 NPC-ADB/W3.3LS: Construction of MV, LV networks and LD Cty CP ĐTXL và thương mại Tân Việt - Cty 519,393 substations for Cao Loc, Van Lang, Chi Lang and Huu Lung, CP thương mại XL công nghiệp Thăng Long. in Lang Son province. 02A 0255 NPC-ADB/W3.1HG: Construction of MV, LV networks and LD Cty TNHH đầu tư và XL Trường Sơn - Cty CP 626,378 substations for Quang Ba, Vi Xuyen, Dong Van and Meo ĐTXD&Thương mại BÌnh Minh - Cty TNHH vật Vac, in Ha Giang province. liệu điện XL Thanh Xuân. 02A 0256 NPC-ADB/W3.2HG: Construction of MV, LV networks and LD Cty TNHH Duyên Hà - Cty TNHH phát triển 315,537 substations for Su Phi, Xi Man, Quang Binh and Bac Quang, công nghệ hệ thống. in Ha Giang province.

54 Appendix 8

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02A 0257 NPC-ADB/W3.3HG: Construction of MV, LV networks and LD Cty CP XL và TM Tân Việt - Cty CP Thương 905,961 substations for Yen Minh and Bac Me districts, in Ha Giang mại XL công nghiệp Thăng Long - Cty TNHH province. Phong Luyến 02A 0258 NPC-ADB/W3.1YB: Construction of MV, LV networks and Cty TNHH Hà Dương. 288,296 substations for Van Chan and Mu Cang Chai districts, in Yen Bai province. 02A 0259 NPC-ADB/W3.2YB: Construction of MV, LV networks and LD Cty CP Hồng Nam - Cty CP ĐTXD&TM miền 195,399 substations for Yen Binh and Luc Yen districts, in Yen Bai Bắc. province. 02A 0260 NPC-ADB/W3.3YB: Construction of MV, LV networks and Cty TNHH MTV IEC-1. 484,056 substations for Van Yen district, in Yen Bai province. 02A 0261 NPC-ADB/W3.4YB: Construction of MV, LV networks and LD cty CP ĐT và XD Hoàng Tiến Phát - Cty CP 418,189 substations for Tran Yen district, in Yen Bai province. XL công trình 478. 02A 0262 NPC-ADB/G03-AF2.LOT1: Procurement of Meter boxes. Cong ty CP thuong mai quoc te Dai Hoang Minh. 25,261 02A 0263 NPC-ADB/C1-G01: Procurement and transportation of Procurement and transportation of transformers. 429,412 Transformers. 02A 0264 NPC-ADB/G01-AF2.LOT2: Procurement of Protection and Cong ty CP ung dung va phat trien cong nghe 15,971 switching equipment. thong tin. 02A 0265 NPC-ADB/G02-AF2.LOT1: Procurement of MV insulators Cong ty CP dau tu va thuong mai HK. 129,570 and accessories. 02A 0266 NPC-ADB/G02-AF2.LOT2: Procurement of MV and LV Cong ty CP day va cap dien Thuong Dinh. 256,554 conductors. 02A 0267 NPC-ADB/G03-AF2.LOT3: Procurement of LV distribution Cong ty CP ung dung va phat trien cong nghe 30,527 cubicles. thong tin. 02A 0268 NPC-ADB3/MV/LV-W6.1LC: Construction of MV, LV LD Cty CP dau tu xay lap va TM Tan Viet va Cty 978,441 networks and substations for Muong Te, Nam Nhun districts, CP dau tu va phat trien Binh Minh. in Lai Chau province. 02A 0269 NPC-ADB3/MV/LV-W6.2LC: Construction of MV, LV LD Cty TNHH Duyen Ha - Cty TNHH dau tu va 529,195 networks and substations for Than Uyen, Tan Uyen, Sin Ho xay lap Truong Son. and Tam Duong districts, in Lai Chau province. 02A 0270 NPC-ADB3/MV/LV-W6.1ĐB: Construction of MV, LV LD Cty TNHH Duyen Ha - Cty TNHH dau tu va 1,170,831 networks and substations for Nam Po districts, in Dien Bien xay lap Truong Son. province. 02A 0271 NPC-ADB3/MV/LV-W6.2ĐB: Construction of MV, LV LD Truong Thinh - Ha Duong - Tuan Giao. 372,936 networks and substations for Muong Nhe, in Dien Bien province. 01A 0272 PACKAGE NPC-ADB SV/G01: Supply of Electro- Zhejiang Jinlun Electromechanics Co., Ltd. 970,173 Mechanical Equipment and technical services

Appendix 8 55

ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 01B 0273 Package No. 02-DPR: Supply of distribution transformers TOJI Group. 309,038 and materials for substation. 01B 0274 Package 07-DPR: Installation of mechanical-hydraulic Dai Han Mechanical and Fabrication JSC. 176,606 equipment, electrical equipment for powerhouse and distribution transformers. 02C 0275 CPC-ADB-QT-W01 Lot 1.2-1 Construction of the remaining Haiphong Electric Construction & Investment Joint 184,137 lines and substations for Gio Binh, Linh Thuong, Vinh Stock Company. 01 Tran Tat Van Str, Kien An Truong, Gio Mai communes, Gio Linh town, Gio Linh district, Dist, Hai Phong City. Vinh Linh district and Cam Lo district, Quang Tri province. 02B 0276 Supply of meter cable for connection upstream meters for Cong ty TNHH TM-SX Day và Cap dien Dai Long. 154,091 Khmer Households in Tra Vinh and Soc Trang - Using surplus fund. 02C 0277 CPC-ADBAFP3-QT - W01 Lot 1.1: Construction of JV Cong ty CP Xay dung dien VNECO 12 va 248,132 transmission lines and substations for Dakrong, Huong Hoa, Cong ty CP Dau tu va Xay dung VNECO 9). Trieu Phong, Cam Lo districts and Quang Tri town, Quang Tri province. 02C 0278 CPC-ADBAFP3-QT - W01 Lot 1.2: Construction of Cong ty CP Co khi va Xay lap An Ngai. 375,736 transmission lines and substations for Hai Lang, Gio Linh, Vinh Linh districts, Quang Tri province. 02C 0279 CPC-ADBAFP3-QN-W01 Lot 1.1: Construction of Cong ty CP Binh Ha. 210,060 transmission lines and substations for Dien Ban, Dai Loc, Duy Xuyen, Thang Binh district, Quang Nam province. 02C 0280 CPC-ADBAFP3-QN-W01 Lot 1.2: Construction of Cong ty CP Co khi Ha Giang, Phuoc Tuong. 227,472 transmission lines and substations for Que Son, Phuoc Son, Hiep Duc, Dong Giang, Nam Giang and Phu Ninh district, Quang Nam province. 02C 0281 ADB AFP3-CPC -DL -G01: Supply of MV and LV overhead Cong ty TNHH Thuong mai san xuat day va cap. 318,950 line 02C 0282 ADB AFP3-CPC -EMMJ-G02: Supply of pin insulators, Cong ty TNHH mtv vat lieu dien va co khi dn. 76,854 string insulators, accessories. 02C 0283 ADB AFP3-CPC -HANAKA-G03: Supply of transformers. Cong ty co phan tap doan hanaka 126,830 02C 0284 ADB AFP3-CPC -TOKI- G04: Supply of LV Distribution. Cong ty co phan tap doan toji. 30,036 02C 0285 Construction of the remaining lines and substations for Hai An Ngai Mechanical and Construction Joint Stock 184,850 Lang 1 (Hai Thien, Hai Thanh, Hai Vinh, Hai Thuong, Hai Company Joint Stock Company. 06 Nguyen Thuy Duong, Hai Xuan, Hai Quy) Quang Tri province. Str, Tran Phu Ward, Quang Ngai City, Quang Ngai province, Viet Nam.

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ADB Category Financing PCSS No. Contract Description Suppliers/Contractors (name & address) No. Amount ($ equivalent) 02C 0286 Construction of transmission lines and substations for Hai An Ngai Mechanical and Construction Joint Stock 180,486 Lang 2 (Hai Son, Hai Chanh, Hai Tho, Hai Phu, Hai Le, Hai Company Joint Stock Company. 06 Nguyen Thuy Truong, Hai Ba), Quang Tri province. Str, Tran Phu Ward, Quang Ngai City, Quang Ngai province, Viet Nam. 01B 0287 Package No. 44-AR: Construction of the protection against The Construction company Ltd. No. 564 140,629 landslides for A Roang hydropower plant. 211 Ha Huy Tap, Vinh city, Nghe An province, Viet Nam. 01B 0288 Package No. 45-AR: Construction of the Communication Consortium of Tri Luc Co. - Gia Luc Co. 40,892 and SCADA system for A Roang hydropower plant. * Tri Luc Electronic Telecommunication JSC: 231/9 Le Duan, Tan Chinh ward, Thanh Khe district, Danang, Viet Nam * Gia Luc Co. Ltd.: K11/2 Che Lan Vien, Ngu Hanh Son district, Danang, Viet Nam. 02C 0289 Supply of MV&LV conductors, insulator, accessories and Consortium: Dai Long Trading Manufacturing 300,788 switching equipment. Electric Wire and Cable Co., Ltd. and Dien Nam Viet Co., Ltd. 02C 0290 Supply of distribution transformers and LV distribution Consortium: Ha Noi Transformers & Electrical 169,161 boards. Equipment Manufacturing Joint Stock Company (TRANEK) and TOJI Group JSC (TOJI). 02A 0291 Construction of 35kv & 0,4kv line, 35/0, 4kv substation Invest pro co., JSC. 29,915 &meters, conductors for household 02A 0292 NPC -ADB -NP /W06: xay lap hang muc cap dien cho cac JV: thuong mai va xay lap dien tuan giao. 55,319 ho dan bo sung huong loi. Total 138,450,820 ADB = Asian Development Bank, JSC = joint stock company, kV = kilovolt, MV = medium voltage, LV = low voltage. Source: Asian Development Bank.

Appendix 9 57

COMPLIANCE WITH LOAN AND GRANT COVENANTS

Reference in Loan/Grant Description Agreement Status of Compliance A. LOAN In the carrying out of the Project and operation of Article IV – Complied with. the Project facilities, the Borrower shall perform, or Particular cause to be performed, all obligations set forth in Covenants – Schedule 5 to this Loan Agreement. Section 4.01 The Borrower shall enable ADB’s representatives to Article IV – Complied with. inspect the Project, the Goods and Works financed Particular out of the proceeds of the Loan, and any relevant Covenants – records and documents. Section 4.02 The Borrower shall take all action which shall be Complied with. necessary on its part to enable EVN and the PCs to Article IV – perform their obligations under the Project Particular Agreement, and shall not take or permit any action Covenants – which would interfere with the performance of such Section 4.03 obligations. (a) The Borrower shall exercise its rights under the Complied with. Subsidiary Loan Agreements in such a manner as to Article IV – protect the interests of the Borrower and ADB and to Particular accomplish the purposes of the Loan. Covenants – (b) No rights or obligations under the Subsidiary Section 4.04 Loan Agreements shall be assigned, amended, or waived without the prior concurrence of ADB. MOIT shall be responsible for overall coordination of Schedule 5, Complied with. project implementation and shall set up a steering para. 2 committee within three months of the Effective Date. The steering committee, chaired by a Vice Minister of MOIT, shall comprise representatives of EVN, the power companies and Renewable Energy and Rural Electrification Project Management Board (REREPMB), and shall be responsible for monitoring and providing guidance and direction to the Project’s implementation. The project management units (PMUs) of NPC and Schedule 5, Complied with. CPC, staffed with full time personnel and assisted para. 3 by national and international consultants, shall be responsible for day-to-day implementation of Component 1 in their respective regions. For output 2, the respective provincial units of the power companies and PMUs shall oversee and supervise overall project implementation and report its progress to MOIT, while each subproject shall be implemented by a provincial unit of the respective power company to be supported by international and national consultants. (Rural Electrification and Renewable Energy Policy) Schedule 5 B, Complied with By the end of Project implementation, the Borrower para. 4 shall take necessary administrative/regulatory measures (i) to establish simplified procedures for approval, licensing and connecting of embedded renewable generation projects connected to the

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medium voltage having a capacity less than 30 megawatts (MW), and (ii) to establish a transparent subsidy mechanism to promote renewable energy development and to electrify remote and difficult areas. Schedule 5, C. Para 5. (Financial Matters) The Schedule 5 C, Partly Complied with. See Borrower shall ensure, through appropriate tariff para. 5 attached note with detailed adjustments and other means, that EVN and the assessment. power companies maintain (i) a self-financing ratio of twenty-five% (25%) or above, (ii) a debt service coverage ratio of 1.5 or above, and (iii) a long-term debt-equity ratio of 70:30 or less. The Borrower shall also ensure that adequate tariff increases are proposed by EVN and processed by the relevant authorities of the Borrower in a timely and effective manner. Subproject Selection: Para. 6 (b) A subproject shall Schedule 5 D, Complied with. have been selected in accordance with the following para. 6 procedures: (i) international consultants shall review the feasibility study of a subproject and their recommendations shall be incorporated in the feasibility study as appropriate; (ii) the feasibility study report and Project safeguard documents including the Initial Environment Examination report and the resettlement plan as applicable shall be approved by NPC or CPC as the case may be; (iii) the respective power companies shall submit the summary feasibility study report and Project safeguard documents to ADB; and (iv) ADB shall approve each subproject. Subproject Selection: Subprojects of output 1 shall Schedule 5 D, Complied with. be selected in the following manner: (a) Unless para. 6 otherwise agreed between the Borrower and ADB, a subproject shall have satisfied the following criteria: (i) a subproject shall be technically feasible and have a capacity less than 7.5MW and have institutional arrangements for ownership, project implementation and operation and maintenance acceptable to ADB; (ii) a subproject shall be financially and economically viable after taking into account the cost of grid connection and grid extension to serve local communes. The financial internal rate of return shall exceed the weighted average cost of capital; (iii) a subproject has strong support based on in-depth consultations with its beneficiaries; (iv) a subproject shall be categorized as either Category B or C under ADB’s Involuntary Resettlement Policy (1995); (v) a subproject shall not involve transfer of water from one sub basin to another sub basin and shall not be located in environmentally sensitive areas such as national parks and protected areas. It shall be categorized as either Category B or C under ADB’s Environment Policy (2002); (vi) a subproject enables electrification of minimum of 100

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households per MW of installed capacity; and (vii) a poverty and social analysis of a subproject shall be undertaken and submitted to ADB as part of the subproject feasibility report. At least fifty percent (50%) of households receiving electricity through a subproject shall have an income level below the national poverty rate. Subproject Selection: para. 7. Subprojects of output Schedule 5 D, Complied with. 2 shall be selected in the following manner: para. 7 (a) Unless otherwise agreed between the Borrower and ADB, a subproject shall have satisfied the following criteria: (i) at least fifty percent (50%) of households receiving electricity through a subproject shall have an income level below the national poverty rate; (ii) the average cost per electrified household in a subproject shall be less than $1,500; and (iii) a subproject shall have been classified as Environment Category C under ADB’s Environment Policy (2002). Subproject Selection: para. 7. Schedule 5 D, Complied with. (b) A subproject shall have been selected in para. 7 accordance with the following procedures: (i) a power company, in consultation with the respective Provincial Peoples Committee, shall propose the list of communes where a subproject will be carried out;(ii) MOIT shall approve, on a no objection basis, the list of such communes and submit the list to ADB; and (iii) ADB shall approve the list of such communes. Operation and Maintenance: The Borrower shall Schedule 5 E, Complied with. ensure that each power company will carry out the para. 8 annual budget allocation which fully covers costs for the operation and maintenance of any Project facilities. Resettlement and Environmental Issues: The Schedule 5 F, Complied with. Borrower and the power companies shall ensure para. 9 that only subprojects that fall within Category C (no impacts) or Category B (not significant impacts) on involuntary resettlement and environment will be selected and implemented, as provided in paragraphs 6 and 7 of this Schedule. The screening and categorization of the subprojects shall be done in accordance with the RF and EARF. In the event that any resettlement impacts are unavoidable for a particular subproject, the Borrower shall prepare a resettlement plan for such subproject following the detailed design and in accordance with the agreed RF and ADB’s Involuntary Resettlement Policy (1995). Resettlement and Environmental Issues: The Schedule 5 F, Complied with. Borrower shall ensure that Project activities comply para. 10 with (i) applicable laws and regulations of the Borrower; (ii) ADB’s environment policies and regulations, specifically ADB’s Environment Policy (2002); (iii) the EARF; and (iv) environmental

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mitigation measures and environmental monitoring plan as set out in the IEE to be approved by ADB. The Borrower shall also ensure that IEEs for subprojects categorized as Category B will be prepared in accordance with ADB’s Environment Policy (2002). RPs shall be publicly disclosed in places accessible Schedule 5 F, Complied with. to all affected people prior to submission to ADB for para. 11 its review and approval, all in accordance with ADB’s Public Communications Policy (2005). No award of civil works contract for a particular Schedule 5 F, Complied with. subproject of Category B shall be given until ADB para. 12 approves the related RP. A notice of possession of site for construction work shall not be issued to civil works contractors for any subproject of involuntary resettlement Category B until (i) compensation payment and relocation to new sites for affected people have satisfactorily been completed in accordance with the RP; (ii) rehabilitation measures are in place; and (iii) the area required for civil works is free of all encumbrances. Poverty: The Borrower shall ensure that the Project Schedule 5 G, Complied with. benefits accrue to the poorer segments of ethnic para. 13 minority people living in the target provinces. The Borrower shall further ensure that poor households, as identified under the Special Program, are subsidized with electricity connection costs including house wiring for electricity bulbs and electricity socket up to $40 equivalent or one-half of the actual connection cost, whichever is lower. The Borrower shall take appropriate measures that the poor households will be consulted on, and participate in, the Project during subproject implementation. Ethnic Minority Development: The power companies Schedule 5 H, Complied with. shall undertake social analysis for all the para. 14 subprojects to be included in output 1, and for a sample of communes of each province to be included in output 2. Based on the social analysis, the Borrower shall ensure that EMDPs are prepared for all subprojects under output 1 and a provincial EMDP for each province included in output 2 that have significant impacts on ethnic minorities in accordance with EMDF. The Borrower shall further ensure that EMDPs are submitted to ADB for its review and approval. Prior to the submission to ADB, EMDPs shall be disclosed to the affected ethnic minorities and posted on the respective Provincial Peoples Committee’s website, all in accordance with the ADB’s Public Communication Policy (2005). The poor ethnic minority households shall also be subsidized with electricity connection costs in a manner as set forth in paragraph 13 of this Schedule. Gender: The Borrower shall ensure that the gender Schedule 5 H, Complied with. strategy to be provided in EMDP and Summary of para. 15 Poverty Reduction and Social Strategy shall be

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properly implemented. The gender strategy shall include, but not be limited to, the following specific actions: (i) holding separate meetings for planning productive use of electricity component with representatives from women's unions and women community leaders in the Community Management Boards; (ii) carrying out capacity building training for women on productive use of electricity awareness raising campaign on safe electricity; (iii) subsidizing female headed poor ethnic minority households with electricity connection costs in a manner as set forth in paragraph 13 of this Schedule; and (iv) registering the replacement land in both the husband's and wife’s names in cases where land acquisition has taken place. Other Social Matters The Borrower shall cause the Schedule 5 J, Complied with. power companies to: (a) have provisions in the civil para. 16 works contracts to be financed under the Project to the effect that contractors (i) shall comply with all applicable labor laws and related international treaty obligations and do not employ child labor, and (ii) shall provide safe working conditions for both male and female workers; and (b) carry out, in the campsites and villages under subprojects, education and awareness campaign for HIV/AIDS and anti- trafficking of women and children, in coordination with the agencies working on national program of HIV/AIDS prevention. B. GRANT In the carrying out of the Additional Financing Article IV – Complied with. Project and operation of the Additional Financing Particular Project facilities, the Recipient shall perform, or Covenants – cause to be performed, all obligations set forth in Section 4.01 Schedule 4 to this Grant Agreement. (a) The Recipient shall (i) maintain separate Article IV – Complied with. accounts and records for the Additional Financing Particular Project; (ii) prepare separate annual financial Covenants – statements for the Additional Financing Project in Section 4.02 accordance with accounting principles acceptable to ADB; (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international standards for auditing or the national equivalent acceptable to ADB; (iv) as part of each such audit, have the auditors prepare a report (which financial statements, use of the Grant proceeds and compliance with the financial covenants of this Grant Agreement as well as on the use of procedures for statement of expenditures and a management letter (which sets out the deficiencies in the internal control of the Additional Financing Project that were identified in the course of the audit, if any); and (v) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements,

62 Appendix 9

audit report and management letter, all in the English language, and such other information concerning these documents and the audit thereof as ADB shall from time to time reasonably request.

(b) ADB shall disclose the annual audited financial statements for the Additional Financing Project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB’s website

(c) The Recipient shall enable ADB, upon ADB's request, to discuss the financial statements for the Additional Financing Project and the Recipient's financial affairs where they relate to the Additional Financing Project with the auditors appointed pursuant to subsection (a)(iii) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB. This is provided that such discussions shall be conducted only in the presence of an authorized officer of the Recipient, unless the Recipient shall otherwise agree. The Recipient shall enable ADB's representatives to Article IV – Complied with. inspect the Additional Financing Project, the Goods Particular and Works, and any relevant records and Covenants – documents. Section 4.03 The Recipient acknowledges and agrees that this Article IV – Complied with. Grant Agreement is entered into by ADB, not in its Particular individual capacity, but as grant administrator for the Covenants – Clean Energy Fund. Accordingly, the Recipient Section 4.04 agrees that (i) it may only withdraw Grant proceeds to the extent that ADB has received proceeds for the Grant from the Clean Energy Fund, and (ii) that ADB does not assume any obligations or responsibilities of the Clean Energy Fund in respect of the Additional Financing Project or the Grant other than those set out in this Grant Agreement. The Recipient shall ensure or shall cause the PCs to Schedule 4, Complied with. ensure that the Additional Financing Project is para 1 implemented in accordance with the detailed arrangements set forth in the Supplemental PAM for the Additional Financing Project. Any subsequent change to the Supplemental PAM shall become effective only after approval of such change by the Recipient and ADB. In the event of any discrepancy between the Supplemental PAM and this Grant Agreement, the provisions of this Grant Agreement shall prevail. The Recipient shall ensure that the counterpart Schedule 4, Complied with. funds necessary for the Additional Financing is para 2 provided on a timely basis and that the PCs make available all funds and resources necessary for the financing of taxes and duties. The Recipient shall further ensure that additional counterpart funding is available to cover any shortfalls that may occur

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During the Additional Financing Project implementation. The Recipient shall ensure that the Additional Schedule 4, Complied with. Financing Project is implemented based on an para 3 output-based aid (OBA) mechanism in accordance with the Supplemental PAM. For financing of one-time electricity service Schedule 4, Complied with. connections costs including in house wiring, prior to para 4 Grant disbursement, the Recipient shall ensure or cause the PCs to ensure that each household meets at least one of the below eligibility criteria (each an as set forth in detail in the Supplemental PAM: (a) poor below poverty line; (b) in danger of falling into poverty; (c) female-headed household; (d) disabled or invalid; (e) elderly; (f) suffer from chronic illness; or (g) an ethnic minority. For financing of rehabilitation costs of ad hoc Schedule 4, Complied with. service connections exclusive of in-house wiring, para 5 prior to Grant disbursement, the Recipient shall ensure or cause the PCs to ensure that each household is an Eligible Household and have damaged conductor from meter to house which is unsafe and consists of substandard construction, as set forth in detail in the Supplemental PAM. The Recipient shall cause the PCs to submit to ADB Schedule 4, Complied with. a monitoring report prepared by the Independent para 6 Verification Agent regarding the compliance with the following conditions: (a) delivery of the service connections to Eligible Households by the applicable PC; (b) compliance with technical standards detailed in the Supplemental PAM for the service connections to Eligible Households; and (c) evidence of payment of electricity bills for three months by an Eligible Household after service connection is provided by the relevant PC. The Recipient shall ensure or shall cause the PCs to Schedule 4, Complied with. ensure that the Independent Verification Agent is a para 7 third party independent agent with no connections to the Recipient or the PCs and shall possess the appropriate experience and technical and operational skills. The Recipient and the PCs shall (a) comply with Schedule 4, Complied with. ADB Anticorruption Policy (1998, as amended to para 8 date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, fraudulent, collusive or coercive practice relating to the Additional Financing Project; and (b) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation. The Recipient and the PCs shall ensure that the Schedule 4, Complied with. anticorruption provisions acceptable to ADB are para 9

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included in all bidding documents and contracts, including provisions specifying the right of ADB to audit and examine the records and accounts of the executing and implementing agencies and all contractors, suppliers, consultants, and other service providers as they relate to the Additional Financing Project. The Recipient shall ensure that (a) the PCs comply Schedule 4, Complied with. with applicable laws and regulations of the Recipient para 10 on combating money laundering and financing of terrorism; and (b) Grant proceeds are not used, directly or indirectly, in money laundering or financing of terrorism. The Recipient shall ensure that the Additional Schedule 4, Complied with. Financing Project does not have any environmental, para 11 indigenous peoples or involuntary resettlement impacts, all within the meaning of ADB Safeguard Policy Statement (2009). In the event that the Additional Financing Project does have any such impact, the Recipient shall take all steps required to ensure that the Additional Financing Project complies with the applicable laws and regulations of the Recipient and with ADB Safeguard Policy Statement

ADB = Asian Development Bank, CAP = corrective action plan, DDR = due diligence report, EVN = Vietnam Electricity, RP = resettlement plan, PAM = project administration manual, UXO = unexploded ordnance, PCs = Power Corporations. Source: Asian Development Bank.

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COMPLIANCE WITH PROJECT PARTICULAR COVENANTS

Reference in Amended and Reinstated Covenant Project Agreement Status of Compliance (a) EVN and the PCs shall carry out the Project with due Section 2.01 Complied with. diligence and efficiency, and in conformity with sound administrative, financial, engineering, environmental and renewable energy and rural electrification practices. (b) In the carrying out of the Project and operation of the Project facilities, EVN and the Power companies shall perform all obligations set forth in the Special Operations Loan Agreement and Grant Agreement to the extent that they are applicable to EVN and the PCs. The PCs shall make available, promptly as needed, the Section 2.02 Complied with. funds, facilities, services, equipment, land and other resources which are required, in addition to the proceeds of the Loan and Grant, for the carrying out of the Project. (a) In the carrying out of the Project, the PCs shall Section 2.03 Complied with. employ competent and qualified contractors, acceptable to ADB, to an extent and upon terms and conditions satisfactory to ADB. (b) Except as ADB may otherwise agree, all Goods and Works to be financed out of the proceeds of the Loan and the Grant shall be procured in accordance with the provisions of Schedule 4 to the Loan Agreement and Schedule 3 of the Grant Agreement, respectively. ADB may refuse to finance a contract where Goods or Works have not been procured under procedures substantially in accordance with those agreed between the Borrower and ADB or where the terms and conditions of the contract are not satisfactory to ADB. The PCs shall carry out the Project in accordance with Section 2.04 Complied with. plans, design standards, specifications, work schedules and construction methods acceptable to ADB. The Power companies shall furnish, or cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request. (a) The PCs shall take out and maintain with responsible Section 2.05 Complied with. insurers, or make other arrangements satisfactory to ADB for, insurance of Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice. (b) Without limiting the generality of the foregoing, the PCs undertake to insure, or cause to be insured, the Goods to be imported for the Project and to be financed out of the proceeds of the Loan and the Grant against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and

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Reference in Amended and Reinstated Covenant Project Agreement Status of Compliance for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such Goods. The PCs shall maintain, or cause to be maintained, Section 2.06 Complied with. records and accounts adequate to identify the Goods, Works and consulting services and other items of expenditure financed out of the proceeds of the Loan and the Grant, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect, in accordance with consistently maintained sound accounting principles, its operations and financial condition. (a) ADB, EVN and the PCs shall cooperate fully to Section 2.07 Complied with. ensure that the purposes of the Loan and the Grant will be accomplished. (b) EVN and the PCs shall promptly inform ADB of any condition which interferes with, or threatens to interfere with, the progress of the Project, the performance of its obligations under this Project Agreement or the Subsidiary Loan Agreements, or the accomplishment of the purposes of the Loan and the Grant. (c) ADB, EVN and the PCs shall from time to time, at the request of either party, exchange views through their representatives with regard to any matters relating to the Project, EVN, the Power companies, the Loan and the Grant. (a) The PCs shall furnish to ADB all such reports and Section 2.08 Complied with. information as ADB shall reasonably request concerning (i) the Loan, the Grant and the expenditure of the proceeds thereof; (ii) the Goods, Works and other items of expenditure financed out of such proceeds; (iii) the Project; (iv) the administration, operations and financial condition of the Power companies; and (v) any other matters relating to the purposes of the Loan and the Grant. (b) Without limiting the generality of the foregoing, the PCs, through EVN, shall furnish to ADB quarterly reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and within such a period as ADB shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter. (c) Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as ADB may agree for this purpose, the Power companies shall prepare and furnish, through EVN, to ADB a report, in such form and in such detail as

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Reference in Amended and Reinstated Covenant Project Agreement Status of Compliance ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by the Power companies of their obligations under this Project Agreement and the accomplishment of the purposes of the Loan and the Grant. (a) The PCs shall (i) maintain separate accounts for the Section 2.09 Partial Complied. The Project and for its overall operations; (ii) have such power companies did not accounts and related financial statements (balance submit audited project sheet, statement of income and expenses, and related financial statements for statements)audited annually, in accordance with fiscal years 2009-2011 appropriate auditing standards consistently applied, by given that there had not independent auditors whose qualifications, experience been any ADB-financed and terms of reference are acceptable to ADB; and (iii) expenditures incurred furnish to ADB, promptly after their preparation but in any event not later than 6 months after the close of the during the years. Since fiscal year to which they relate, certified copies of such 2012 until project audited accounts and financial statements and the completion, project report of the auditors relating thereto(including the accounts were audited by auditors' opinion on the use of the Loan proceeds and independent auditors Grant proceeds and compliance with the financial acceptable to ADB. The covenants of the Loan Agreement as well as on the use audited reports met of the procedures for imprest accounts/statement of requirements set on the expenditures), all in the English language. The Power loan and grant companies shall furnish to ADB such further information agreements. The auditor’s concerning such accounts and financial statements and opinions were acceptable the audit thereof as ADB shall from time to time to ADB. reasonably request. (b) ADB shall disclose the annual audited financial statements for the Project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them in ADB website. (c) In addition to annual audited financial statements referred to in subsection (a) hereinabove, each PC shall (i) provide its annual financial statements prepared in accordance with international financial reporting standards; (ii) have its financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international standards for auditing acceptable to ADB; and (iii) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements in the English language and such other information concerning these documents and the audit thereof as ADB shall from time to time reasonably request. (d) The Power companies shall enable ADB, upon ADB’s request, to discuss the Power companies’ financial statements and their financial affairs from time to time with the auditors, appointed by the Power companies pursuant to Section 2.09(a) hereinabove,

68 Appendix 9

Reference in Amended and Reinstated Covenant Project Agreement Status of Compliance and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of authorized officers of the Power companies unless the Power companies shall otherwise agree. The PCs shall enable ADB's representatives to inspect Section 2.10 Complied with. the Project, the Goods and Works financed out of the proceeds of the Loan and the Grant, all other plants, sites, properties and equipment of the Power companies, and any relevant records and documents. (a) The PCs shall, promptly as required, take all action Section 2.11 Complied with. within their powers to maintain their corporate existence, to carry on their operations, and to acquire, maintain and renew all rights, properties, powers, privileges and franchises which are necessary in the carrying out of the Project or in the conduct of their business. (b) The PCs shall at all times conduct their business in accordance with sound administrative, financial, environmental and renewable energy and rural electrification practices, and under the supervision of competent and experienced management and personnel. (c) The PCs shall at all times operate and maintain their plants, equipment and other property, and from time to time, promptly as needed, make all necessary repairs and renewals thereof, all in accordance with sound administrative, financial, engineering, environmental, renewable energy and rural electrification, and maintenance and operational practices. Except as ADB may otherwise agree, the PCs shall not Section 2.12 Complied with. sell, lease or otherwise dispose of any of their assets which shall be required for the efficient carrying on of their operations or the disposal of which may prejudice their ability to perform satisfactorily any of their obligations under this Project Agreement. Except as ADB may otherwise agree, the PCs shall Section 2.13 Complied with. apply the proceeds of the Loan and the Grant to the financing of expenditures on the Project in accordance with the provisions of the Loan Agreement, the Grant Agreement and this Project Agreement, and shall ensure that all Goods and Works financed out of such proceeds are used exclusively in the carrying out of the Project. Except as ADB may otherwise agree, the PCs shall duly Section 2.14 Complied with. perform all their obligations under the Subsidiary Loan Agreements, and shall not take, or concur in, any action which would have the effect of assigning, amending, abrogating or waiving any rights or obligations of the parties under the Subsidiary Loan Agreements.

Appendix 9 69

Reference in Amended and Reinstated Covenant Project Agreement Status of Compliance Each PC shall promptly notify ADB of any proposal to Section 2.15 Complied with. amend, suspend or repeal any provision of its Charter and shall afford ADB an adequate opportunity to comment on such proposal prior to taking any action thereon. ADB = Asian Development Bank, EVN: Vietnam Electricity, PCs = Power Corporations Source: Asian Development Bank, Northern Power Corporation, Central Power Corporation, Southern Power Corporation.

Note on assessment of compliance with financial covenants.

1. Following the Loan Agreement (Schedule 5, C. para 5), “ The Borrower shall ensure, through appropriate tariff adjustments and other means, that EVN and the power companies maintain (i) a self-financing ratio of twenty-five percent (25%) or above, (ii) a debt service coverage ratio of 1.5 or above, and (iii) a long-term debt-equity ratio of 70:30 or less. The Borrower shall also ensure that adequate tariff increases are proposed by EVN and processed by the relevant authorities of the Borrower in a timely and effective manne r”. Financial ratios of EVN and the power companies during project implementation (2010-2017) are shown Table A9.1.

Table A9.1: Financial Ratios of Viet Nam Electricity and the Power Companies, 2010-2017

EVN Ratio Covenant 2009 2010 2011 2012 2013 2014 2015 2016 2017 DER <70:30 2.57 3.17 4.57 1.78 1.83 1.90 1.80 1.94 1.91 DSCR >1.5 1.24 0.59 0.70 1.27 1.12 1.14 1.03 1.60 1.53 SFR >25% 23.60 3.22 (24.53) 29.0 (4.85) 15.0 24.15 27.44 73.18 NPC DER <70:30 1.19 1.24 2.03 0.88 0.92 1.17 1.27 1.44 1.63 DSCR >1.5 2.70 1.82 0.83 2.21 1.71 2.0 2.2 2.4 2.3 SFR >25% 37.4 71.63 17.11 70.51 72.69 81.0 67.0 66.0 45.0 CPC DER <70:30 0.80 0.80 0.96 0.63 0.69 0.82 0.96 1.06 1.27 DSCR >1.5 2.73 3.63 2.94 1.47 2.1 1.4 3.9 2.9 2.9 SFR >25% 49.16 186.6 81.3 79.44 87.0 42.0 82.0 76.0 62.0 SPC DER <70:30 2.27 0.4 0.7 0.34 0.43 0.56 0.76 0.59 0.67 DSCR >1.5 8.94 6.64 2.9 5.2 5.60 4.77 6.90 4.0 5.8 SFR >25% 214.82 83.99 105.5 139.47 54.0 37.5 36.5 43.7 85.6 () = negative, DER = deb-equity ratio (70:30 = 2.33), DSCR = debt-service coverage ratio, SFR = self-financing ratio. Sources: EVN, NPC, CPC, and SPC’s audited financial reports

2. While the power companies maintained good financial performance, EVN was in breach of debt-equity ratio from 2009 to 2011 and the debt–service coverage ratio throughout 2009– 2015, and in compliance with the self-financing ratio only in 2012, 2016, and 2017. Country and sector level issues are the cause for the breach in financial loan covenants. Viet Nam has relied predominantly on a public-sector model for financing power infrastructure expansion needs. This model has come under strain as demand for power supply and investment needs have continued to grow at a rapid rate. The maintenance of retail electricity prices below cost recovery levels over many years impacted the sector’s cash flows, leaving EVN and the power companies with no

70 Appendix 9 option but to increase debt to meet capital expenditure needs. In addition, EVN’s financial performance has been adversely affected by factors including hydrology, fuel price hikes and currency risks (Dong devaluation was almost 40% from 2009 to 2017 and affected EVN's financial performance significantly by increasing EVN’s debts in dong terms as they were mostly denominated in foreign currencies such as the US dollar and yen).

3. EVN suffered sustained losses in 2010-2011 that contributed to a serious deterioration of EVN’s financial covenants. By 2011, EVN was stretched with debt accounting for 85% of assets. In 2012, EVN’s financial performance improved significantly, from a loss of 12% of income in 2011 to a profit of 14% of income due to (i) substantial tariff increases in 2011-2012 and greater use of hydropower in 2012; and (ii) losses arising due to the deprecation of Vietnamese dong against foreign currencies were considerably lower in 2012 than in 2011, falling by more than 50% between 2011 and 2012.

4. EVN carried out an asset revaluation in 2012 for its transmission and distribution subsidiaries. The impact was to increase the assets’ value significantly. As a result, EVN had additional equity in its balance sheet, and financial indicators such as the debt-equity ratio were improved from 85:15 in 2011 to 70:30 in 2012. Similarly, the debt-equity ratios of the power companies were improved.

5. A tariff reform toward a cost-reflective electricity tariff was initiated in 2009 1 with the mechanism for gradual increases in tariffs toward full cost recovery. Several key changes to retail tariff were introduced: (i) a national uniform tariff applied both in urban and rural areas; (ii) incremental block tariff applied to residential. Since then, tariff regulation was further relaxed in later years, allowing EVN to increase the retail gradually to reach cost recovery level, as seen in the table A9.2 and figure A9.1.

Table A9.2: Cost Recovery Level Tariff vs. Retail Tariff Increase

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cost Recovery Level Tariff  VND/kWh 1,180 1,282 1,323 1,474 1,540 1,634 1,665 1,668 1,731 N/A  Increase (%) 21.5 8.6 3.2 11.4 4.5 6.1 1.9 0.1 3.8 N/A Average Retail Tariff  VND/kWh 1,058 1,242 1,437 1,509 1,509 1,622 1,622 1,720 1,720 1,864  Increase (%) 11.5 17.4 15.7 5.0 0.0 7.5 0.0 6.0 0.0 8.4 N/A = not available. Source: Asian Development Bank based on information disclosed by various government’s agencies.

1 The Government of Viet Nam. 2009. Prime Minister’s Decision no. 21/2009/QD-TTg.

Appendix 9 71

Figure A9.1: Cost Recovery Level Tariff vs. Average Retail Tariff 2000 22.0% 1800 20.0% 1600 18.0% 1400 16.0% 14.0% 1200 12.0% 1000 10.0% 800 8.0% 600 6.0% 400 4.0% 200 2.0% 0 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Actual cost-reflective tariff (VND/kWh) Average Retail Tariff Increase (VND/kWh) Actual cost-reflective tariff Increase (%) Average Retail Tariff Increase (%)

Source: Asian Development Bank based on information disclosed by various government’s agencies

6. A gradual electricity tariff adjustment to reach full cost recovery by 2020 is very important for a sustainable power supply in Viet Nam. Non-tariff related recommendations included developing a sustainable debt financing strategy, developing and implementing a new investment strategy, and improving operational efficiency and risk management. These measures should complement, not substitute for, tariff increases. Besides the tariff reform, the development of a competitive power market was initiated in 2006; launching competitive generation market in 2012, piloting of the wholesale electricity market in 2017-2018 and full operation from January 2019. This has been contributing to improved financial viability of the power sector by providing cost- based pricing signals and attracting the private sector investment.

7. ADB has been instrumental in power sector reform process through the provisions of technical assistances, which led to the promulgation of the Electricity Law; the road map for the development of a competitive electricity market in 2006; the launching of a competitive generation market in 2012 and the wholesale electricity market in 2017; and transmission pricing regulations in 2017. To improve the sector’s overall financial viability, ADB together with other development partners supported policy reforms for the 2018 to 2020 period which covered sector restructuring and tariff reforms. In addition, the World Bank is assisting EVN to address financial challenges including getting corporate credit rating and issuing a long-term bonds in the international capital market.

72 Appendix 10

ECONOMIC AND FINANCIAL EVALUATION

I. INTRODUCTION

1. The project was a sector project and therefore at appraisal only one core MHP was identified, the Nam Nghe MHP. For the PCR, economic and financial re-analysis of this MHP has been undertaken together with economic and financial analysis of the other 4 MHPs. The assumptions, data used, and results are presented in this appendix.

2. Though no financial or economic analysis for rural electrification and rehabilitation works was undertaken at appraisal since the primary purpose of this output as to achieve social rather than economic and financial goals, an economic internal rate of return for output 2 at project completion has been estimated based on a number of broad assumptions to exam economic benefits of output 2. Table A1.3, Appendix 1 contains data on the medium and low voltage network extensions and improvements completed under output 2, the number of households benefitting and the average cost per household. Appendix 1 also contains data on medium and low voltage network extensions and improvements and the number of households benefitting that occurred under output 1.

II. OUTPUT 1 – MINI HYDROPOER POWER

A. ECONOMIC ANALYSIS

3. The assumptions underlying the economic evaluation included the following:

(i) All costs and prices are expressed in 2018 values. The Viet Nam and world inflation rates and the D/USD exchange rates used to convert historic price data to 2018 values are taken from ADB and World Bank sources and are summarized in Table 10.1.

Table A10.1: Exchange Rates and Rates of Inflation

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Exchange 16,302 17,065 18,613 20,510 20,828 20,935 21,149 21,676 21,931 22,370 22,665 rate

Viet nam 1.856 1.753 1.594 1.343 1.230 1.155 1.109 1.102 1.073 1.037 1.0 inflation

International 0.939 1.0 0.965 0.869 0.876 0.879 0.893 0.986 1.027 0.992 1.0 inflation Source: Domestic inflation and exchange rate series from: ADB. 2018. Asian Development Bank Outlook, How Technology Affects Jobs. Manila and ADB. 2018. Key Indicators for Asia and the Pacific. Manila (and 2016 and 2013 editions). International inflation series from: World Bank. 2018. Commodity Prices. New York. (MUV Index- unit value of manufactured exports for fifteen countries) www.worldbank.org/en/research/commodity-markets.

(ii) Economic values are estimated based on the domestic price numeraire; (iii) No shadow exchange rate factor (SERF) was applied to the foreign exchange content of costs and benefits. The foreign exchange content of project costs is relatively low and applying such a factor would have no material effect; (iv) The economic cost of capital was assumed to be 12%, the same as at appraisal; (v) A project analysis period of 30 years from 2012 to 2041 (inclusive) was used. Capital expenditure commenced in 2012 for the first completed MHP (CPC’s A Roang MHP, completed in 2016). The 2012 to 2041 analysis period implies operating lives of

Appendix 10 73

between 22 and 26 years for each of the MHPs. To the extent project benefits continue after 2041 (i.e. there are residual values at the end of the assumed project economic lives for each of the MHPs) the analysis is conservative; and (vi) The tax component of MHP capital and O&M costs is assumed to be 10%, the same as tax assumption at appraisal.

a. With or Without Project Scenarios

4. The without project scenario assumes those communes close to each of the new MHPs would continue to receive power either from expensive to run diesel sets and localized reticulation networks or from the national grid and that without the project, national grid supply was from thermal generation. With the project, the hydropower from the MHPs displaced the power from the local diesel sets and the residual supply available from the MHPs displaced thermal generation supplying the national grid. Therefore, all of the sales were non-incremental sales and were valued on the basis of saved resource costs – either those associated with local diesel set generation or thermal generation supplying the national grid. As at appraisal it was assumed that electricity consumption with the project would be the same as without the project. There were no incremental electricity sales as a result of the project and which needed to be valued on a willingness to pay basis.

5. Connection to the grid with the project will have led to improvements in reliability of supply but such benefits have not been included in the economic analysis. To this extent the results of the economic analysis are conservative.

b. Project Economic Costs

6. In the economic analyses for each of the MHPs only the direct capital costs and O&M costs are included. No allowance has been made for a share of the costs covered by the piggy- backed TA, which was largely funded by ADB grant funding. Output 2 of this TA provided assistance with the planning and implementation of the 5 MHPs. Included within project costs are construction costs, equipment costs, compensation and resettlement costs, project management costs, consulting costs (for consultants engaged directly by each of NPC and CPC) and other costs. In the case of the Nam Pay MHP contingencies are included since this MHP is not yet completed.

7. Transmission and distribution costs were included in economic costs insofar as they were part of the MHP component costs of the project and were necessary to (i) connect the MHPs to the national grid; (ii) connect communes previous served by localized distribution networks to the national grid to benefit from MHP supply; and (iii) rehabilitate localized distribution networks that were not previously connected to the grid and were in disrepair.

8. The total financial costs for each of the MHPs were apportioned to annual amounts using the implementation progress graphs contained in each of NPC and CPC’s project completion reports, as follows:

Mini hydropower 2012 2013 2014 2015 2016 2017 2018 2019 Nam Nghe - - 1% 19% 32% 38% 10% - Nam Pay - - 7% 18% 11% 39% 10% 15% So Vin - - - 20% 20% 60% - - A Roang 4% 24% 52% 20% - - - -

74 Appendix 10

Dak Pring - - 4% 16% 64% 16% - - Sources: Northern Power Corporation and Central Power Corporation.

9. The annualized costs were converted to 2018 constant price terms and taxes deducted. Estimated O&M costs were provided by NPC and CPC for each of the MHPs. Included in O&M costs are materials, services, resource taxes, forest environment fees, water resource exploitation fees, salaries and insurance. 1 These ranged between 1.8% and 4.8% of MHP capital costs (in constant 2018 prices) 2, slightly higher than the 1.5% assumed at appraisal. However, this is reasonable in the light of periodic additional maintenance costs which have already been required to clear access roads and this is likely to be a requirement from time to time in the future. The EIRRs for each of the MHPs are not particularly sensitive to the level of O&M costs assumed.

c. Project Economic Benefits

10. As at appraisal, the project economic benefits were based on sales to the newly electrified consumers in remote areas and sales to the grid. Sales to the grid were further differentiated as between those that would enable savings in both capacity and generation costs and those that would only allow savings in generation costs due to the “run-of-river” characteristics of the MHPs. Analysis undertaken by the TA consultants together with ADB staff produced weighted average economic values for each of the MHPs and these values have been converted to 2018 prices and used in the economic analysis. The economic values (in 2018 prices) for each of the MHPs are:

i. Nam Nghe – D 1,356/kWh ii. Nam Pay – D 2,073/kWh iii. So Vin – D 3,167/kWh iv. Dak Pring – D 2,584/kWh v. A Roang – D 2,063/kWh

11. The economic value of electricity that displaces expensive diesel generation for newly connected consumers is much more valuable than grid sales. Therefore, the weighted average economic value of electricity is much higher for those MHPs that have enabled the greater amounts of such expensive electricity generation displacement (i.e. So Vin and Dak Pring). This is the most significant factor affecting the relative EIRRs for the MHPs.

12. Annual sales of electricity from each of the MHPs is based upon actual production data up to the end of 2018 and forecast average annual future production for each of the MHPs provided by each of NPC and CPC. Forecasts of production figures contained within each of the feasibility studies prepared by the TA consultants in 2012 provided a cross-check for these forecasts now made by NPC and CPC. Losses and own use within each of the MHPs of 1% per annum were assumed, as was estimated at appraisal. This is reasonably consistent with the level of these losses measured in the early years of operation of the MHPs by NPC and CPC.

1 Depreciation and interest costs are excluded because these are covered by capital costs in the analysis. 2 Nam Nghe 1.8%, So Vin 4.8%, Nam Pay 1.8% (assumed to be the same percentage as Nam Nghe), A Roang 3.8% and Dak Pring 3.1%. So Vin’s O&M costs are high in percentage terms because its lack of economies of scale. O&M costs for A Roang and Dak Pring are higher than for MHPs in the north because of higher environmental taxes and fees.

Appendix 10 75

13. Only A Roang MHP and Dak Pring MHP have been registered to receive Clean Development Mechanism (CDM) payments; at appraisal it was assumed all of the MHPs would be registered. These payments have been assessed on the basis of a price of $6 per ton of carbon (the price used to calculate the first of A Roang’s payments received in 2018) and 0.5764 tons of carbon per GWh 3. It is assumed these payments will continue up until 2022. Sensitivity testing shows the economic analysis results are not particularly sensitive to changes in the price of carbon used to determine future CDM payments.

d. Economic Analysis Results and Sensitivity Testing

14. The capital and O&M costs and the electricity generation benefits have been combined to calculate the estimated economic internal rate of returns (EIRRs) and net present values (NPV) for the MHPs. The base case EIRRs and NPVs at a 12% discount rate for each MHP are:

Mini hydropower EIRR at Appraisal 4 EIRR at Completion NPV (%) (%) (D million) Nam Nghe 11.6 10.4 -27,377 Nam Pay 14.6 9.4 -42,332 So Vin 11.9 23.7 78,599 A Roang 18.8 16.5 87,559 Dak Pring 16.9 16.7 62,635 Source: Asian Development Bank

15. EIRRs exceed the 12% cost of capital threshold except for those of Nam Nghe and Nam Pay. The EIRR for the So Vin MHP is high reflecting its much higher economic value for electricity produced. The EIRRs for Nam Nghe and Nam Pay MHPs reflect the relative low economic values for these MHPs compared to the other MHPs. Also Nam Pay MHPs construction costs increased during project implementation.

16. Increasing forecast future generation for each of the MHPs by 10% raises the EIRRs by between 1.0% and 2.0%, raising O&M costs by 10% lowers the EIRRs by between 0.2% and 0.3%, whilst excluding CDM payments for each of A Roang and Dak Pring MHPs lowers their EIRR by 0.5% and 0.3% respectively.

e. Non-quantified Economic Benefits

17. Appendix 11 lists a number of socioeconomic benefits that the project has achieved including improved livelihoods from income generating activities and cost savings using electricity. To the extent these benefits have been achieved as a consequence of project spending under output 1, the EIRRs calculated for each of the MHPs are conservative.

B. FINANCIAL ANALYSIS

18. The financial analysis for each of the 5 MHP’s has involved comparing the pre-tax financial internal rate of return (FIRR) with the weighted average cost of capital (WACC), as was done at appraisal for the single core MHP – the Nam Nghe MHP. The analysis was undertaken in real

3 Source: TA consultants feasibility studies. 4 At appraisal an EIRR was only estimated for the core subproject – Nam Nghe MHP. EIRRs were estimated for each of the MHPs in feasibility studies prepared during project implementation prior to their approval for construction under the project.

76 Appendix 10 terms, i.e. constant 2018 prices by using the exchange rate and inflation rate series in Table A10.1 to convert the annualized financial costs and benefits to Vietnamese dong in constant 2018 prices.

a. Financial Costs

19. The financial costs were the same as for the economic analysis, except the 10% assumed tax content of capital and O&M costs was not deducted.

b. Financial Benefits

20. The financial benefits, as for the economic analysis, were based on actual past (I.e. up until the end of 2018) production and expected future average production adjusted for losses to give total sales. A weighted average tariff was calculated based on estimates for total annual revenue 5 divided by total annual sales to take account of tariffs varying between peak and non- peak times throughout the year. These weighted average tariffs for each of the MHPs, based on data provided by NPC and CPC are as follows:

c. Nam Nghe: D 1,144/kWh d. Nam Pay: D 1,155/kWh e. So Vin: D 1,749/kWh f. Dak Pring: D1,525/kWh g. A Roang: D 1,473/kWh

21. As for the economic analysis the CDM payments were included for the A Roang and Dak Pring MHPs only.

c. Weighted Average Cost of Capital Calculation

22. As at appraisal the weighted average cost of capital (WACC) for each of the MHPs was estimated by combining the interest costs adjusted for inflation for ADB loan funding for construction 6 (6.9% reducing to 3.09%, after adjusting for domestic inflation of 3.7%) and equipment 7 (2.64% with no adjustment for inflation given little or no international inflation in recent years) and equity capital using a real opportunity cost for equity funding of 9.45%. This has been estimated as follows:

 Risk free rate of 10 year Government Bonds 5.2% 8 (from www.investing.com/rates-bonds/Vietnam-10-year-bond-historic-data)  Plus term and risk premium 8.3% (based on Appraisal Report survey of 81 international power utilities)  Financial cost of equity, nominal 13.5%  Inflation rate 3.7%  Real cost of equity 9.45%

23. The WACC for each of the MHPs vary between 4.6% and 5.2%, depending upon the various proportions of funding from ADB in local and foreign currency and power company equity funding. At appraisal the WACC for the Nghe Nam core MHP was only 1.77%, but this largely

5 Provided by NPC and CPC for each of their MHPs. 6 This debt is in Vietnamese dong. 7 This debt is in US dollar. 8 Rate on 3 January 2019.

Appendix 10 77

reflected the presumption that the power company equity would meet only 10% of the cost of the project, whereas equity has funded between 25% and 34% of the capital costs of each MHP. Also at appraisal it was assumed the nominal interest rate for loan financing would only be 2.5%.

d. Financial Analysis Results

24. The re-estimated FIRRs for each of the MHPs and a comparison with their respective WACCs are as follows:

Mini-hydropower FIRRs WACC (%) (%) Nam Nghe 7.0 5.0 Nam Pay 4.0 5.1 So Vin 20.0 4.2 A Roang 8.0 4.8 Dak Pring 7.7 4.5

25. All of the FIRRs exceed their WACCs, except Nam Pay, reflecting its relatively low expected weighted average tariff. The FIRRs are lower than the EIRRs because taxes are included in capital and O&M costs and the weighted average tariffs for each of the MHPs are lower than the economic values.

e. Summary of Key Assumptions and Economic and Financial Analysis Results

26. Table A10.2 summarizes the key assumptions and economic and financial results for each of the MHPs.

Table A10.2: Summary of Key Assumptions and Results of Economic and Financial Analysis Nam Nam A Nghe So Vin Pay Roang Dak Pring Total real capex D million 349,844 107,264 322,713 250,339 280,942 MW 7.5 2.8 7.5 7.2 7.5 MWhs generated (future expected/year) 36,076 10,651 26,640 25,000 24,000 O&M costs/annum D million 6,400 5,100 5,809 9,396 8,833 O&M % of Real Capex 1.8% 4.8% 1.8% 3.8% 3.1% CDM payments yes yes Effective weighted tariff D/kWh 1,144 1,749 1,155 1,473 1,525 Economic value D/kwh 1,356 3,167 2,073 2,063 2,584 EIRR (base case) 10.4% 23.7% 9.4% 16.5% 17.7% Economic NPV (12%) D million -27,377 78,599 -42,332 62,635 87,559 FIRR 7.0% 10.0% 4.0% 8.0% 7.7% Financial NPV D million 68,566 74,400 -31,096 97,694 92,857 WACC 5.0% 4.2% 5.1% 4.8% 4.5% CDM = clean development mechanism, EIRR = economic internal rate of return, FIRR = financial internal rate of return, MW = megawatt, MWh = megawatt hour, NPV = net present value, O&M = operation and maintenance, WACC = weighted average cost of capital. Source: Asian Development Bank.

78 Appendix 10

III. OUTPUT 2 – GRID EXTENSION AND REHABILITATION

27. Although no economic analysis of output 2 of the project was undertaken at appraisal, the costs and benefits of output 2 at completion have been compared to determine its estimated EIRR. The costs for output 2 were spread over the years 2011 (1.8%), 2012 (17.7%), 2013 (27.2%), 2014 (19.9%), 2015 (16.5%), 2016 (14.6%) and 2017 (2.3%). These costs were converted to constant 2018 prices using the CPI factors in Table A10.1. O&M costs were assumed to be 2% of capital expenditure costs. 9 The long run marginal costs of electricity supply (including generation, transmission and distribution) was assumed to be 8.3 cents per kWh (in 2018 prices) based on TA consultants’ feasibility study reports prepared as part of output 1 of the project.

28. The total number of new connections was 159,845 and the total number of rehabilitated connections was 140,189 (Table Appendix 1). These were assumed to be undertaken in line with the pattern of capital expenditure. The average electricity consumption for households was assumed to be 47 kWh per month or 564 kWh per annum. 10 For new connections it was assumed half of this electricity displaced more expensive forms of energy (e.g. diesel generator supply, kerosene lamps, etc.) and was valued at 40.4 cents per kWh (in 2018 prices) based on TA consultants’ feasibility study reports prepared as part of output 1 of the project. The other 50% was assumed to be new electricity consumption and this was based on a willingness to pay estimate of 24.1 cents per kWh. This is the mid-point between the displaced value and the average 2018 tariff of 7.6 cents per kWh. 11 For rehabilitated electricity consumers, an increase in electricity consumption of 10% was assumed due to the improved reliability of supply. Ongoing growth in electricity sales of 2% per annum per household was assumed. 12

29. The base case estimated EIRR for output 2 is 18.9%. Reducing the replaced energy value by 20% to 32.3 cents per kWh reduces the EIRR to 13.1%, whilst reducing the new electricity consumption value by 20% to 19.3 cents per kWh reduces the EIRR to 16.3%. If the new electricity consumed is all valued at the average 2018 tariff of 7.6 cents per kWh the EIRR falls to 10.2%. If the displaced energy for new connections is reduced from 50% to 30% and therefore the new electricity consumption for new connection is increased from 50% to 70%, the EIRR falls to 15.9%.

IV. CONCLUSION ON PROJECT EFFICIENCY

30. The project’s use of resources is rated as efficient based on a combination of the measured EIRRs and substantial non-quantified benefits.

9 Source: World Bank. 2007. Implementation Completion and Results Report IDA-33580/JPN-266489 On a Credit in the Amount of SDR 111.7 million to the Socialist Republic of Viet Nam for a Rural Energy Project. Washington. 10 Source: ADB. 2012. Electricity for All – An Output Based Aid Program to Promote Access to Electricity in Rural Viet Nam. Hanoi. (This report was prepared by the consultant for output 3 of the project.) 11 The reason the mid-point is chosen is because for some electricity consumers the benefits from consuming additional electricity will be near the high alternative cost of supply whilst for others it will be just above the average tariff. Assuming consumers preferences are normally distributed between these two points suggests the mid-point is an average value. However, in sensitivity testing taking a value of just the average tariff is considered. 12 Source: World Bank. 2007. Implementation Completion and Results Report IDA-33580/JPN-266489 On a Credit in the Amount of SDR 111.7 million to the Socialist Republic of Viet Nam for a Rural Energy Project. Washington.

Appendix 11 79

SUMMARY OF GENDER EQUALITY RESULTS AND ACHIEVEMENTS

I. PROJECT DESCRIPTION

1. At appraisal, the project was classified as effective gender mainstreaming (EGM). When ADB adopted a new categorization system on gender mainstreaming in 2012, the project was classified EGM. EGM was implemented based on the gender strategy included in the Report and Recommendation to the President (RRP). The gender strategy was mainstreamed through Ethnic Minority Development Plans (EMDPs) prepared for subprojects under output 2 of the project targeting 224 communes.

2. The executing agencies and their Project Management Units (PMUs) and the provincial subsidiaries were responsible for implementation of EMDPs. The main activities were (i) promoting productive and efficient energy use among the poor and vulnerable project beneficiaries; (ii) promoting gender equality and women’s empowerment; and (iii) safeguarding ethnic minorities through EMDPs.

II. GENDER ANALYSIS AND PROJECT DESIGN FEATURES

A. Gender Issues and Gender Action Plan Features

3. Gender issues included:

i. women in remote and non-grid connection areas have limited mobility beyond their community, limiting their access to information and education; ii. women’s productive role is centrally connected to agriculture and animal breeding. Improved electricity access can benefit women, especially women from ethnic minority households through increasing their livelihood activities and incomes (such as making handicraft and traditional weaving, knitting and sewing activities, minor food processing products); iii. women in ethnic minority communities have limited participation in public meetings and public decision making. The project may help them to increase access to information through television or radio and increase access to public meetings in the evening thanks to public lighting that makes their mobility safer; iv. the gender strategy can involve participation of Women Union’s representatives and this can help improve women’s leadership role on public issues; v. negative impacts of land acquisition may affect both men and women, therefore resettlement policy and implementation should be done in consultation with affected groups; and vi. civil works will increase the influx of transient workers in the community which could amplify negative impacts and risks of HIV/AIDS transmission, other sexually transmitted infections (STIs) and human trafficking of local residents.

4. The gender strategy focused on: (i) increasing the PMUs capacity to implement the gender strategy; (ii) increasing participation of poor women, members of women-headed households and ethnic minority women in campaigns on raising awareness of safe electricity utilization; (ii) ensuring free electricity connection for poor women-headed households; (iv) increasing women’s representation in planning, implementing, and monitoring of project activities; (v) increasing awareness among local people of the prevention of HIV/AIDS and human trafficking risks; and

80 Appendix 11

(vi) enhancing income opportunities through the use of processing machines and lights for agricultural inputs and shops together with facilitating women’s access to micro credit.

5. ADB contracted Family Health and Community Development (CEFACOM) as the technical service provider to support implementation of the EMDPs. Overall, EMDP implementation 1 covered a total of 224 communes (3,000 villages) in 10 project provinces, where people were affected by and benefited from output 2.

B. Overall Assessment of Gender-Related Results/Achievements

6. Gender strategy implementation is rated generally successful. Twelve (12) out of 14 actions and 1 quantitative target under the gender strategy were achieved/implemented. Action 9, which required consultation on loss of inventory, land acquisition, compensation and logistics to be held separately for women was not implemented. Action 10 required compensation to be paid and land user rights to be registered in both names of husband and wife. This was not applicable as there was no land allocation during project implementation.

7. A total of 224 IEC committees (a form of community management boards) were set up in which each committee on average has more than 2 female members per committee (the target was 2 female members/committee). Capacity building was conducted for women members of the committees. A total of 661 female participants of 224 committees were trained, out of 1,367 participants (accounting for 48.7% of total participants). Of the 142,572 households that received access to grid under the project, there were 12,672 women-headed households.

8. Skill trainings on access to micro credit were conducted for 11,649 (38.5%) women among 30,222 participants and 2,994 women borrowed credit. They were assisted to invest in various activities for additional income generation equipment such as electrical shredder machines for chopping vegetables to feed pigs in pig raising or animal farms, for rice milling machine, for tofu boiler machines to make tofu, or rice noodle machines to make rice noodle, fridges for frozen foods of groceries shop owners etc. Microcredit investment for small business expansions resulted in increased income, economic empowerment and reduced time poverty. 2 Although slightly delayed, a sex and ethnicity disaggregated monitoring, evaluation and reporting (ME&R) system was developed to effectively monitor implementation of the gender strategy. Details of the gender strategy results are presented in in Table A11.1.

C. Gender Equality Results

9. Participation, access to project resources and practical benefits. The implementation of the project’s Gender Strategy promoted women’s participation and benefit from project resources is summarized below.

1 Total budget allocations for EMDPs implementation in targeted communes was around $262,739 provided by the power companies, plus $238,267 for the CEFACOM contract provided by ADB under the piggy-back TA. 2 Source: Interviews with Ms. Lam, Ro Ro 1 village, A Vao commune, Dak Rong district, Quang Tri, Ms. Nguyen Thi Hanh (Ta oi Ethnic), Ta Roi village, A Ngo commune, A luoi district, Thua Thien Hue province, Ms. Tuyen, Doan Ket village, Chung Chai commune, Muong Nhe district, Dien Bien province : Technical assistance consultant’s final report- TA 7262-VIE, page 29-33.

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10. At project completion, 300,034 households including 202,207 poor households in 3,119 villages/hamlets were provided with electricity by grid expansion.

11. All women headed households (12,672 households) were provided access to electricity. Access to electricity improved their lives as they have better lighting, television and radio that enhanced their social, health and personal development. Women feel grateful for the improved lighting and the opportunities to teach their children at night. Women beneficiaries can save their time by using the electric rice cooker and stove. Time spent on cleaning has also been reduced for women (footnote 2).

12. A total of 31,563 participants joined in these campaigns/meetings, of which 14,947 participants were women (47.3%). The awareness campaigns or meetings were on safe use of electricity, microfinance, HIV/AIDS and human trafficking programs . 661 (48.7%) female participants out of 1,367 participants attended training on safe use of electricity, microfinance, HIV/AIDS and human trafficking programs. The training was accessible for women and people from ethnic groups, using gender and ethnic sensitive materials. 3 The training enabled women, especially ethnic women, to gain skills and confidence in using electricity safely and economically.

13. Local villagers were provided information on access to credit. A total of 6,128 women participated in 279 separate meetings on access to credit, and of them 2,994 women have borrowed credit to invest in livelihood activities, resulting in increased incomes. Box 1 below illustrates a case of access to credit facilitated by the project and improved family income from access to the electric grid.

3 Training materials can be accessed via the link: https://drive.google.com/open?id=1Rf88uP0U7j7fzI0aGa2tSeq7RHkiVTvJ

82 Appendix 11

Box 1: Addressing practical gender need: Access to grid and credit improved livelihood for women.

Ms. Can Thi Diu (26 years old) of Pa Ko ethnicity is a beneficiary of the project, living in Hong Trung commune, A Luoi district, Thua Thien – Hue province. Her household received support and has had grid connection for about 3 years. This support came with a light bulb, switches and electricity meter. In the past, she only had an electricity connection through her mother’s electricity source which was weak and irregular. Beside the connection, Ms Diu also received training on how to use electricity safely and efficiently, and information on

HIV/AIDs prevention and anti-human trafficking. She learned that it is important to watch out for her little daughter and to keep her away from the socket to ensure safety. She also had access to credit via the Women Union, where she borrowed 30 million dong (about $1,200) and is paying back monthly instalments over 36 months. Through the credit, she invested in purchasing 2 refrigerators to expand her small business. With these new refrigerators, she can increase sales and profits from seafood, ice, ice cream and other food stuffs that need to be kept in frozen condition. Her family of 3 (her husband, 5 years old daughter and herself) do not own land and relies on their small grocery shop as their source of income. Thanks to the direct electric connection, and credit to expand her business, Ms. Diu now earns 150,000 dong/day (or about $200/ month). She can save about the 50,000 dong/day. She said she would save money to invest in her daughter’s education in the future.

14. Strategic changes in gender relations. The implementation of the gender strategy contributed to the following strategic changes in gender relations:

(i) The project contributed to changing people in the community’s mindset about gender stereotyping. For example, in the boxes below are two quotes from beneficiaries who attended a training session on the proper use of electricity for home appliances and productive equipment:

Previously, I assumed that only men can be knowledgeable in using electricity equipment. After participating in today’s training, I received instructions from a woman trainer on how to use this equipment effectively and safely in daily life. I think, my wife and other women in my family can easily learn how to use it if we, the men, share the time with them”. N. Hung, male, A Vao commune Dakrong district, Quang Tri province

“After the training, I feel more confident now and I think women should participate in making decisions to purchase electrical equipment in the household”. L. Thoi, female, A Vao commune, Dakrong district, Quang Tri province

(ii) The project contributed to raising awareness at the commune level and promoted the role of the Women's Union as a representative voice for women in public and legal issues. Women make up of nearly 40% of the IEC committee members, and most of them have been trained to organize IEC activities to disseminate the safe and economical use of energy and communicate the mitigation of social risks. Through the IEC activities in the communities, messages on changing behavior and perceptions were fostered. Women can be effective communicators on technical issues related to

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their lives such as electricity. Women taking on leadership roles in these IEC activities and have been respected by members of the community and other male members of the IEC committees.

(iii) The project improved access to grid connections to local and ethnic minority women, with complementary initiatives such as information dissemination, training sessions and facilitating women’s access to credit all contributing to enhancing women’s livelihoods and promoting women’s economic empowerment.

Box 2. Improving strategic gender relations: Access to electricity reduced women’s time poverty

Mrs. Nguyen Thi Hanh of Ta Oi Ethnic Minority from Ta Roi village, A Ngo commune, A Luoi district, Thua Thien Hue province earns her income from sow raising. Before the project, she spent most of her time taking care of the livestock (i.e., from bathing the pigs, cleaning the pigsty, preparing their feeds, etc). Mixing of bran or cutting vegetables and fetching water for cleaning were manual labor and took much of her and her family’s time. Through access to the electricity grid in 2014 and participation in project technical training on the effective use of using electricity and practical safety on productive activities, she started using water pumps for pigs bathing and cleaning the pigsty. She has purchased a vegetable shredder which helped reduce the time she spends on manual work. Ms. Hanh said: "We saved a lot of time since I have now bought a vegetable shredder machine. Previously, it took a couple of hours to manually chop pig’s fodder. There were times I had to feed up to 20 pigs and the amount of vegetables that needed to be chopped daily was as many as a hundred kilograms. Now it takes me only 40 minutes to complete the task. This electrical machine has freed me and many women like me from manual labor. Hard and heavy work has been reduced and now I have more time to take care of my family and myself". In the near future, she intends to apply for a loan from the bank to purchase powder grinding equipment for self-feeding the cattle. She hopes her future investment will contribute to an increase in her income, but what is more important is that she will no longer spend excessive amount of time in doing animal husbandry work and she has more time to take care of her family. Electricity also helped her to access other information via TV programs for her personal health and social development, as well as recreation activities.

15. Contribution of gender equality results to overall loan outcomes and effectiveness. The implementation of the gender strategy has contributed to ensuring that disadvantaged women have benefited substantively from this project. The gender design and monitoring framework outcome target was that “75% of women headed households in the targeted communes were provided with electricity by 2016”. By the end of the project, the total number of women-headed households that have gained access to grid connection 12,672 households.4 This accounted for all the women-headed households in the network coverage areas in targeted project communes and districts. Moreover, the EMDPs implementation , by providing additional capacity building on using electricity for productive activities and access to credit , enabled many women beneficiaries to improve their incomes and contributed to achieving project impacts (of reducing poverty in the project areas). The poor households in the project areas (including poor women-headed

4 Provincial power companies implement EMDP and Gender strategy across 194 EMDP communes, in addition to 30 pilot communes implemented by CEFACOM.

84 Appendix 11 households and poor ethnic households) also benefit from the government electricity subsidy program. 5

III. LESSONS LEARNT AND RECOMMENDATIONS

16. Critical important factors contributing to the success of the project:

(i) CEFACOM was a capable consultant, helped develop an implementable gender strategy, designed a tailor-made training program, delivered technical training for stakeholders and enabled the participants to scale up activities. Overall, the CEFACOM team has provided support and hands-on coaching to provincial master trainers during the implementation and settled issues encountered during the implementation process.

(ii) The power companies and their provincial subsidiaries tried their best in adhering to the requirements of ADB's gender policy in EMDP activities in collaborating with CEFACOM in implementing pilot activities, scaling-up activities under EMDPs. The power companies assigned coordinating staff to be responsible for implementing the EMDPs, facilitated necessary administrative procedures, and allocated funds and staff time for the EMDPs in the required timeline. Without this support, the EMDPs could not have been completed satisfactorily.

(iii) The involvement, consensus and support from local authorities, and mass organizations, especially the Women's Union made it possible for the project to outreach to many people, including the participation of at least 50% of ethnic minority women in all activities including training, awareness campaigns, integration village meetings, and radio broadcasting. This is critical for the efficient implementation of the gender strategy and EMDP.

17. Constraints encountered in the implementation of the Gender Strategy

(i) Implementation delay . Trainings on the safe and economical use of energy (part of EMDPs) were conducted by the power companies and PMUs without gender and ethnicity inclusion in some communes due to the delay in recruiting the TA consultant.6This delay also had consequence for collecting sex-disaggregated data on capacity building on the safe use of electricity for local community people. Some data on achievements (before the consultant was engaged) was not included. Also not available was sex disaggregated data on land acquisition compensation activities which were implemented in several stages before the NGO was engaged.

(ii) Lack of awareness and gender mainstreaming capacity. Initially, the power companies and PMUs did not pay due attention to gender strategy and EMDP implementation because they lacked awareness and gender mainstreaming capacity. This was a challenge and it took some time for the NGO to provide hands-on support to the power companies and PMUs to prepare implementation plans.

5 The cost of the first 30 kw of electricity will be subsided by the government per month for poor households. The policy can be accessed via: https://luatvietnam.vn/cong-nghiep/quyet-dinh-28-2014-qd-ttg-thu-tuong-chinh-phu-85933- d1.html#noidung. 6 The NGO was contracted in August 2015.

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(iii) Gender strategy design: The design of the gender strategy created challenges to relevant stakeholders for effective implementation as well as for effective monitoring and reporting of the gender strategy as some gender actions were not specific enough as they could be interpreted one way or another for example Action 11 was difficult to report on results and Action 10 was not relevant.

18. Sustainability:

(i) Livelihoods and income generation activities for women beneficiaries have been improved and are likely to be sustained beyond completion of the project. 2,994 women borrowed funds in 224 communes under the project to purchase electrical appliances for household production activities.

(ii) Social impacts of the project on women’s lives in terms of reducing time poverty, access to information and improved access to social, health and recreation activities are likely to continue to benefit women and their families in the long term.

19. Recommendations:

(i) Raising awareness and capacity building of gender mainstreaming to relevant stakeholders . Awareness campaign and capacity building on mainstreaming gender strategy into project activities need to be undertaken with appropriate levels to different stakeholders identified as implementors or facilitators or beneficiaries of gender strategy. These activities should be carried out from early stage of project preparation and during project implementation so that relevant stakeholders could understand their roles and responsibilities in preparation and implementation of gender strategy and EMDP, from which they plan and undertake activities with due attention and capacity.

(ii) Selection of an NGO to help implement the EMDPs is strongly recommended. Implementation of EMDPs in rural electrification projects needs a strong social and poverty reduction perspective in implementation. Participation of an NGO as a service provider is recommended for future similar projects. However , NGO’s engagement is recommended as soon as the project starts to ensure gender benefits and proper data collection for monitoring and reporting purposes.

(iii) Gender strategy and EMDP implementation arrangements can be improved further. Participation of an NGO as the service provider, the power companies and their provincial subsidiaries as direct implementors, and participation of women unions and local authorities in the IEC activities are appropriate. However, the linkages and responsibilities among these stakeholders were not clearly clarified in the EMDPs. This made it difficult to set up a proper M&E system and efficient reporting of results. Implementation arrangements and monitoring and reporting roles for each stakeholder should be clearly clarified and agreed among stakeholders from the beginning of the project to ensure smooth implementation.

(iv) Several elements of the gender strategy and EMDP should be replicated and further improved as follows ( i) collaboration with the women’s union at project areas to outreach with their women members for the IEC program. This is an effective way to disseminate information to local women especially the poor and ethnic groups’ women, who have language and cultural barriers; (ii) utilization of a combined approach for conducting IEC activities such as face-to-face meetings using ethnic

86 Appendix 11

languages, distributing leaflets with pictures to facilitate understanding of participants during meetings, repetitive broadcasting of IEC information via loudspeakers using ethnic languages in remote communities when face-to-face meetings and geographical distance are barriers, etc.; (iii) longer training of trainers for local IEC facilitators, especially those with ethnic backgrounds is recommended to build confidence of trainees in public speaking and sharing technical knowledge on energy saving and efficient use of energy; and (iv) arranging child care for women participants of IEC sessions is particularly recommended. This additional support will encourage more women to participate in these capacity building sessions and helps them focus on learning the topics during the training. Irrelevant action 10 should have been removed during the project midterm review.

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Table A11.1: Gender Strategy Results

Strategy Results

Target 1: Inclusion of representatives of Women’s Achieved. Total 224 IEC committees (which also function as CMBs) were established. Out of Union and 2 women leaders from the ethnic minority the total 1,980 members, 846 were women members. On average, there are at least three or communities including one women leader from poor four female members per committee. households in Community Management Board (CMB). Total Committee Female Committee Ethnic Minority No. of IEC Members Members Members % of Female 224 1,980 846 1556 42.7

Action 1: Capacity building training of the women CMB Achieved. members, Women’s Union for planning, implementing Training type Number of Number of female % of female and monitoring of project activities (productive use of participants participants participants electricity, Micro-credit program operation, awareness ToT training on productive, efficient 192 77 40.1 on safe use of electricity and conservation). and safe use of electricity, micro- credit operation, Training on project activities for CMB 1367 661 48.3 members IEC training at commune level for 1165 584 50.1 commune facilitators Total 2724 1322 48.5 Content of the both TOT and IEC trainings 7 included: (i) roles of community participation in monitoring implementation of EMDP and gender strategy with specific relevant indicators; (ii) use of electricity safely and efficiently in livelihood activities; (iii) how to access credit and effective usage of loans by promoting use of electrical equipment; and (iv) prevention of HIV/AIDS and human trafficking.8 Action 2: Ensure that female households, ethnic Achieved. All 142,572 poor and vulnerable households, including women headed households, minority women, and poor women should have free ethnic minority households received free access to electricity, 12,672 (12.8%) of these connection (output 2) of electricity. households are women headed households and 49,359 (49.8%) are poor ethnic minority households. Action 3: Separate meeting with women groups for Achieved. The project conducted campaigns on safe use of electricity. 31,563 participants awareness campaign on safe use of electricity; Ensure joined in these campaigns/meetings, of which 14,9479 participants were women (47.3%). Among participation of ethnic minority, female households and these campaigns/ meetings, 6,128 women participated in 279 women separated meetings on poor women in the awareness campaign. safe use of electricity, microfinance program and HIV/AIDS and human trafficking program. Campaigns, meetings and training were diverse. Pictures below the table provide some ideas

7 The differences are mainly on depth of content coverage and length of the trainings. 8 Source: Technical assistance consultant’s final report- TA 7262-VIE, para 26 page 7. 9 Greater participation is likely but initially power companies did not record sex disaggregated data.

88 Appendix 11 Strategy Results

on how these campaigns and meetings took place. Action 4: Training of Women’s Union Members to Achieved. 21 members of the Women’s Union at provincial, district levels participated in TOT facilitate campaign on HIV/AIDS, STDs and Human trainings and 194 member of the commune Women’s Unions (among 584 female participants) Trafficking Program; HIV/AIDS, STDs and Human participated in trainings for facilitators on IEC activities 10 and they facilitated the campaigns on Trafficking program should target women’s groups in the prevention of HIV/AIDS, STDs and Human Trafficking in their communities. These Women the villages. Union’s facilitators specifically targeted 279 groups with total 6,128 women participants in the villages to disseminate information on HIV/AIDS, STDs and Human Trafficking program and micro finance programs. Action 5: Information and Educational material for Achieved. Information and training materials for campaign on HIV/AIDS, STDs and Human campaign on HIV/AIDS, STDs and Human Trafficking Trafficking Program and motivational campaign on safe use of electricity were developed in local Program and motivational campaign on safe use of languages and adopted cultures of different ethnic minority groups. Guidelines on organizing electricity should be relevant to ethnic minority culture communication activities contained separate sections on women and ethnic minorities. Contents in the sub-project area. of these sections stated the participation of the community in monitoring the implementation EMDPs & Gender Strategy. In addition, contents of the IEC materials were broadcasted through announcements using loudspeakers and communicated in village meetings including translation to some ethnic languages relevant to the ethnic communities. 11 Action 6: Conduct a needs assessment for women Achieved. Needs assessments were initially conducted in 19 communes in 10 provinces. specific activities through micro-finance; conduct Consultations with the commune authorities, women’s union, the Bank of Social Policy and 152 meetings with women’s groups to provide information households also took place. The findings were on the current safe and efficient electricity of on micro-finance program and its potential for income provincial power companies, the interest in and potential productive electricity equipment to be generation. introduced in training, awareness of HIV/AIDs prevention for local ethnic people, human trafficking situation, the available micro credit programs run by the local women’s union, and criteria to select 30 pilot communes to conduct pilot activities under the technical assistance. It was found that most poor households, especially female-headed households, single women and ethnic women already had access to credit, loans from various sources: Social Policy Bank, Agricultural Bank, Revolving Fund from the Women's Union.12 Based on the data and information collected from the survey, the consultants designed the training program. Later on, the project introduced information on microfinance programs and the potential for income generation to women only groups, there were 6,128 women participants attending 279 separate meetings for women. Action 7: Provide skills training to women borrowers for Achieved . Skills training on access to credit and credit management were conducted for 11,649 productive use of micro-finance. (38.5%) women out of 30,222 participants in 224 communes. Among these women, 2,994 women borrowed to buy electrical appliances for household production activities. Loan amounts for productive equipment purchase usually were high since the equipment is of higher value than normal loan lent by these institutions. Therefore, available funds were insufficient to meet all borrowers’ demands. 13

10 Source: Consultant’s final report - TA 7262-VIE; Appendix 1, page 37 11 Some of the training materials can be access via the link: https://drive.google.com/open?id=1Rf88uP0U7j7fzI0aGa2tSeq7RHkiVTvJ. 12 Source: Consultant’s Inception report -TA 7262-VIE, Annex 4, para 21 page 27. 13 Source: Consultant’s final report -TA 7262-VIE, Annex 4, page 39.

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Strategy Results

Action 8: Women headed households and poor women Achieved. At the commune level, the women’s union regularly maintained a list of women will be specifically targeted for income improvement headed households and poor women households for regular and specific support for income activities. improvement activities. The project supported these households to access credit for production and business on a non-collateral basis through a memorandum of understanding between the power companies and the Bank of Social Policy and Bank of Agriculture Rural Development and Women Union.14 The women union’s facilitators directly assisted these 485 women of women headed households and 260 poor households’ women to apply for accessing credit from the Bank of Social Policy. This support created opportunities for poor women and women of female headed households to use electricity for livelihood improvement. Action 9: In sub projects, resettlement plan, gender Partly Achieved. 5,753 women (accounting for 36.8%) out of 15,612 participants attended strategy will be included to ensure that women are consultation meetings on resettlement and EMDP. There is no information to confirm there were consulted separately for loss of inventory, land separate meetings for women. acquisition, compensation and logistics. Action 10: In cases where land allocation is required, Not implemented. There was no land allocation required. land will be registered in both husband’s and wife’s name; and compensation will be paid to both men and women. Action 11: Project will ensure that ethnic minority Achieved. A number of measures to ensure ethnic minority women and poor women participated women and poor women participate actively in all the in and benefited from project activities were undertaken, included: (i) EMDPs activities targeted relevant project activities mentioned and have equal mainly ethnic minorities and poor communities in mountainous and remote areas, ensuring equal access to project benefit. project benefit to all ethnic minority groups including ethnic minority women. (ii) The TA’s consultant developed guidelines on organizing communication program, in which, one specific content of IEC is on gender and women empowerment for poor, ethnic minorities women (in using of electricity) and guided the IEC committee in its application. (iii). Provincial power companies prepared separate lists of poor households, households with vulnerable women, and ethnic minority women and these households were informed of free grid connection. This ensured these groups would be connected to grid free of change. Action 12: Project monitoring system will develop Achieved. A monitoring system was developed for collecting data to monitor gender targets and gender disaggregated monitoring indicators for actions in the gender strategy and EMDP implementation. Data was collected on gender strategy resettlement, awareness and motivational campaign and EMDPs activities and reflected in the consultant’s reports and quarterly project progress on safe use of electricity, awareness campaign on reports submitted by the power companies such as 31,563 participants joined in these HIV/AIDS and Human Trafficking, micro-finance for campaigns/meetings on effective and safe use of energy, using electricity for productive activities productive use of electricity. and livelihood improvement, of which 14,947 participants were women (47.3%). 6,128 women attending 279 separate meeting for women, 11,649 (38.5%) women among 30,333 participants participated in skill training on access to credit and credit management, 5,753 women (36.8%) among 15,612 participants participated in the consultation meetings on resettlement and EMDP.

14 Source: Consultant’s final report -TA 7262-VIE, Annex 4, page 39.

90 Appendix 11 Strategy Results

Action 13: Capacity building and awareness of the Achieved. 192 participants from power companies, PMUs and provincial subsidiaries, and PMUs to operationalize the above gender strategy for related local government agencies participated in the trainings on operationalization of gender the EMDP. strategy for EMDPs. Action 14: Recruit a national gender specialist for 24 Achieved. 44.39-person months of services were included in the contract with the NGO 15 , person-months as part of the consultant team to work including 10.1 months of inputs of gender and ethnic minorities experts and 20 person-months with the project NGO and project implementation unit inputs of community facilitators from local Ethnic Minority communities. There was no gender to prepare an action plan to operationalize the above specialist recruited separately because EMDPs had been developed earlier before project was measures to address gender issues in the relevant approved and the NGO was tasked to develop operational plans of EMDPs and support project activities. implementation under their contract. The NGO had mobilized experts with expertise in gender issues, ethnic minority community development, and energy efficiency to support the gender strategy and EMDPs implementation. CMB = community management board, IEC = information, education, and communication, TOT = training of trainer. Source: Asian Development Bank.

Campaigns /meetings on safe and efficient use of electricity:

15 Consultant’s final report -TA 7262-VIE.

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Loudspeaker air times on safe and efficient use of electricity

92 Appendix 12 TECHNICAL ASSISTANCE COMPLETION REPORT

TA Number, Country, and Name: Amount Approved: $2,500,000

TA 7262-VIE: Capacity Building of Renewable Energy Revised Amount: N/A Development

Executing Agency : Source of Funding: Climate Amount Undisbursed: Amount Utilized: Asian Development Bank Change Fund and Technical $166,696 $2,333,304 Assistance Special Fund (TASF-IV) TA Approval TA Signing Fielding of First Consultant: TA Completion Date Date: Date: Original: Actual: 30 March 2009 16 March 2010 2 June 2010 31 December 2015 31 December 2017 Account Closing Date Original: Actual: 31 December 2015 23 June 2018 Description

The TA was approved along with the Renewable Energy Development and Network Expansion and Rehabilitation Sector Project (Loan 2517-VIE) to (i) support drafting of the renewable energy law and decrees guiding the implementation of the law; (ii) provide capacity building in mini-hydropower development; and (iii) promote productive and efficient energy use and income generating activities for people receiving electricity under the project.

Expected Impact, Outcome, and Outputs

The TA was designed to address several barriers to renewable energy development and rural electrification to support achievement of the project’s expected impact and outcome, particularly:

(i) At the time of project appraisal, the Government of Viet Nam (the government) was considering the enactment of a renewable energy law. The law would provide the necessary mandate for the Ministry of Industry and Trade (MOIT) to assume the central role in renewable energy development, and to take the lead in policy coordination - the lack of which was an important constraint to implementation of the project. Thus, MOIT requested ADB support to draft the renewable energy law and decrees guiding the implementation of the law. At that time, external assistance to renewable energy development in Viet Nam was limited with the focus on off-grid electrification, mainly through small hydro projects.

(ii) The Northern Power Corporation (former Power Company 1) and Central Power Corporation (Power Company 3), executing agencies for development of mini-hydropower plants (MHPs), had little experience in mini-hydropower development. Capacity building for the power corporations and their provincial subsidiaries was required to ensure that the MHPs financed under the project would be designed using state-of-the-art low maintenance technologies to safeguard against these risks.

(iii) In addition, to ensure that social and economic benefits of electrification accrued to ethnic minorities, the major beneficiaries of the project, it was necessary to promote productive use of electricity and to provide poor households with extra support to improve their livelihood through the new opportunities available with electrification.

The TA had three outputs: (i) renewable energy law and implementing decrees enacted; (ii) capacity building in mini-hydropower development provided to the power companies and their provincial subsidiaries in conjunction with the development of 5-10 MHPs with total capacity of over 30 megawatts (MW); and (iii) productive and efficient energy use and income generating activities for people receiving electricity under the project promoted. In response to the government’s request, during implementation the scope of output 1 was changed to support Viet Nam’s power sector reforms.

The TA is assessed relevant as it was consistent with the sector development objectives of ADB’s energy strategy for Viet Nam and the national power development master plan of Viet Nam. Both aimed to create livelihood opportunities for remote and rural people through expanding rural electricity networks and enhancing energy efficiency through the rehabilitation of aging assets, and mitigate climate change through developing renewable energy and reducing transmission and distribution losses. Design innovations included development of a renewable energy policy framework, which enabled the MHPs to provide sustainable and affordable electricity to people in remote and poor areas with complementary support to promote effective use of electricity for their livelihood activities. The TA was adequately formulated and resourced to help facilitate the expected outcome and outputs.

Delivery of Inputs and Conduct of Activities

Output 1: Preparation of a renewable energy law and related decrees . Though initially planned, the government eventually did not proceed with the renewable energy law and related decrees as it did not agree with MOIT’s proposal for establishment of a renewable energy fund. MOIT therefore requested ADB to change the scope of this activity to assist the Electricity Regulatory

Appendix 12 93

Authority of Viet Nam (ERAV) in monitoring operations of the Viet Nam Competitive Generation Market (VCGM) to assess market performance, review detailed design of the Viet Nam Wholesale Electricity Market (VWEM), and recommend the power market structure and transition from VCGM to VWEM. A major change in scope was approved by ADB in June 2014 to accommodate MOIT’s request. Two individual consultants (international 9 person-months, national 6 person-months) were recruited during 2014-2017 to help MOIT implement the above tasks. The consultants prepared briefing notes and reports, as well as conducted workshops on (i) assessment of the adequacy of the current power sector structure for VWEM and identification of major areas requiring structural changes; and (ii) recommended options for power sector restructuring for VWEM and a transition plan. In addition, the consultants conducted a training and capacity-building needs assessment for ERAV and other stakeholders involved in developing the VWEM.

Output 2: Capacity building in sustainable mini hydropower development. A consultant firm was recruited in April 2010 with 110 person-months of consulting services (56 person-months for international, 54 person-months for national) divided into phases: (i) pre-construction (60 person-months) involving identification of MHPs and preparing project documents; and (ii) construction (50 person-months) to supervise and commission selected MHPs. During the pre-construction stage, the consulting firm did not mobilize experts as scheduled, and delayed and delivered poor quality of expected deliverables despite constant requests of the project executing agencies, which resulted delays in construction of the MHPs. ADB terminated the contract with the consultant firm in July 2013 due to poor performance during the pre-construction stage. To facilitate faster and better quality outputs, 9 individual consultants (international 35 person-months, national 35 person-months) were engaged during 2013 - 2017. The individual consultants carried out a number of tasks to support project implementation, including (i) reviewed technical design, risk analysis, cost estimate, and implementation schedule of the MHPs; (ii) helped prepare Ethnic Minority Development Plans (EMDPs), social and environmental safeguards documents, and bidding documents; (iii) reviewed bid evaluation reports; (iv) monitored construction progress and provided advice to the executing agencies, the implementing agencies, and their contractors; and (v) supported implementation of social and environmental safeguards plans and EMDPs.

Output 3: Productive and efficient energy use and income generating activities. A non-government organization (NGO) was engaged in 2015 with 28 person-months of national consulting services to support implementation of output 3 activities in 224 communes of 10 project provinces. The NGO (i) developed knowledge kits, communication materials (radio scripts and radio dramas), and an operations manual; and (ii) conducted 40 trainings for 192 participants (including 10 trainings-of-trainers at provincial level and 30 trainings for commune facilitators, who then supported awareness campaigns in 30 pilot communes. Training covered electricity safety, effective use of electricity for livelihood improvement, accessing and effectively using micro credit loans, HIV/AIDS and human trafficking prevention, participation of the community in monitoring the implementation EMDPs and gender strategy implementation. The NGO also guided the executing agencies to implement additional training and awareness programs with the support of the trainers and commune facilitators.

Changes during implementation. Besides the major change in TA scope under output 1, minor changes were made to reallocate TA funds from output 2 to outputs 1 and 3 and extend the TA completion date to 31 December 2017 to coincide with the extended loan closing date. The former allowed the TA to carry out designed activities under outputs 1 and 3, while the latter was to ensure accomplishment of targeted outputs and activities to promote productive use of electricity for income generating activities.

The performance of the TA implementing agencies was satisfactory with timely and efficient provision of counterpart staff, meeting facilities, logistical support to the consultants, and coordination among relevant agencies. Apart from the unsatisfactory performance of the consulting firm (engaged initially under output 1), the performance of all individual consultants and the NGO was satisfactory with high quality and timely deliverables and hands-on support. The performance of ADB was satisfactory in design of the TA, frequent interaction with the implementing agencies and consultants, and timely and efficient responses enabling changes in scope and activities during the TA implementation.

Evaluation of Outputs and Achievement of Outcome

Output 1 was achieved. The results contributed to the design and formulation of the power market structure for the VWEM 1 and restructuring of Viet Nam’s power sector.2 The VWEM was piloted in 2017-2018 and has been in full operation since January 2019. In addition, the TA helped the government and development partners (including ADB) develop the legal framework and support mechanisms for renewable energy development, including the national renewable energy development strategy to 2030 and outlook to 2050, which was issued in 2015, and other policies, regulations, and support mechanisms (e.g. guidelines and procedures for planning and investment, feed-in-tariffs, and standard power purchase agreements).

Output 2 was achieved. The capacity of the power companies and their provincial subsidiaries to undertake sustainable mini- hydropower planning, preparation of feasibility studies, technical design, procurement and safeguards documents, as well as implementation and operation of MHPs were enhanced through hands-on support by the consultants. Thanks to capacity building

1 The Ministry of Industry and Trade. 2015. Decision 8266/QD-BCT on “ Approval of the detailed design of the Wholesale Electricity Market of Viet Nam ”. Ha Noi. 2 The Government of Viet Nam. 2017. Prime Minister Decision 168/QD-TTg on “ Approval of the plan on restructuring the power industry in the period 2016-2020, with the outlook to 2025 ”. Ha Noi.

94 Appendix 12 activities, the power companies and their provincial subsidiaries successfully constructed 5 run-of-river MHPs with optimized investment cost (actual cost was $54.88 million or 32% less than $80.8 million estimated at appraisal),3 adding 32.5 MW of renewable energy to the national grid.

Output 3 was achieved. Promotion of productive and efficient use of energy, gender equality and women’s empowerment activities, as well as safeguarding ethnic minorities, were implemented in 224 communes with a total of 101,828 people (including 44,479 women or 43.7%) trained. The TA facilitated access to microcredit for 6,128 women and 2,994 borrowed to invest in livelihood activities. An operations manual was produced for use by the implementing agencies covering implementation of EMDPs, gender strategy development, and lessons learned and recommendations on poverty reduction, ethnic minority support, and gender equality building as part of electrification to remote, mountainous, and poor areas.

The TA’s expected outcome was achieved through achievement of the project outcome, with over 300,000 households in remote, mountainous, and poor communes provided with new or improved electricity supply. The TA was effective in achieving its outcome and output targets, which are important for Viet Nam’s power sector to move into the wholesale electricity market, as well as to enhance capacity for hydropower development and rural electrification in a sustainable manner. Though the TA funds were reallocated and the TA completion date was extended by 24 months, the TA was efficient as all activities were completed within the extended timeframe envisaged, with 93.3% of TA funds utilized.

Overall Assessment and Rating

The TA is rated successful . It was relevant to Viet Nam’s power sector reform roadmap and ADB country partnership strategies for Viet Nam and ADB’s Energy Policy (2009) which sought to (i) promote energy efficiency and renewable energy; (ii) maximize access to energy for all; and (iii) promote energy sector reform. The innovative features supported cost recovery of power supply to difficult areas through sharing the cost of grid expansion with MHPs: 8,767 household in 36 villages nearby the 5 MHPs benefited with improved or new electricity connections. In addition, owing to the capacity building activities under the TA, MHP investment activities and costs were optimized, which in turn contributed to overachievement of the project outcome with over 300,000 households benefiting compared to 100,000 households targeted at appraisal. The TA also contributed to improvement of the economic and social well-being of households including poor persons and ethnic minorities in remote and mountainous regions in Viet Nam through promotion of safe and effective use of electricity for livelihood activities as well as promotion of gender equity. This contributed to early achievement of the project’s impact performance target, i.e. poverty rate in project districts were typically reduced by 50% ranging from 10% to 90%. Termination of the consulting firm engaged under the TA’s output 2 did not affect to the overall performance of the TA given the efforts made by ADB and the project executing agencies, and good performance of individual consultants who replaced the consulting firm to carry out the activities under the TA’s output 2.

The TA outcome is likely sustainable , as the Viet Nam wholesale electricity market and the mini-hydropower plants developed under the project and TA will all be in full operation in December 2019 and are expected to remain so for the foreseeable future. There are sufficient financial and human resources in place to operate and maintain project assets and results.

Major Lessons

All stakeholders of rural electrification projects should be made fully aware of the significant impact that productive use of electricity can have in improving household income. This will lead to greater consumption, which in turn will promote the overall financial viability of rural electrification projects. Prior to the TA implementation, both central and local governments as well as the power companies only focused on household electrification rather than productive use of electricity.

Determining when to start educating beneficiaries about the potential for incoming earning opportunities from electricity use is important. Promotion of productive use of electricity should begin about 1 year after electricity is provided because having electricity is life-changing to people living in remote areas as they tend to initially focus on lighting, using appliances such as radio, television, and electric fans. Appropriate business models adapted to the culture and language of different ethnic minorities should be considered when designing and implementing the activities to ensure relevance and viability of promoted income generating activities.

Recommendations and Follow-Up Actions It is recommended that ADB consider more support to promote productive use of electricity in parallel with its support for rural electrification. The support should be designed with a clear understanding of the impact of productive use of electricity and properly allocate responsibilities among relevant stakeholders, utilizing a combination of financial resources, including those of central and local government. Prepared by: Au Minh Tuan Designation and Division: Senior Project Officer (Energy), VRM

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

3 Project Completion Report. Viet Nam: Renewable Energy Development and Network Expansion and Rehabilitation for Remote Communes Sector Project . Table A3.1 and A3.2, Appendix 3,