The project on 500kV Son La – Lai Chau transmission line and extension of 500kV Son La substation is invested by EVNNPT and assigned to NPMB – a subsidiary of EVNNPT for management and implementation. The project has a total investment of about VND 4,070 billion. It is proposed to be financed by KfW from Official Development Assistance (ODA) fund of the German Goverment. The expected total loan is over USD 120 million to be used to finance all costs on equipment, installation, a part of interest of loan and contingency in 2014 – 2017 period.
In order to get an assessment if the project is critical and eligible to the financing policies by the German Government, KfW assigned its consultants to make field trip for surveying, collecting information and working with the local authorities, Project Management Units and the affected households. The field trip aimed to help the consultants to make assessment on the due diligence of the environment, social and resettlement plans of the project, especially of Lai Chau Hydropower Plant, which will be a basis for KfW to submit a report to the German Government for financing approval. As planed, Lai Chau Hydropower Plant has a total capacity of 1,200MW. It was started to be constructed in November 2011, with the first unit will be expectedly put into operation by December 2015 and connected to the national power grid through the 500kV Son La – Lai Chau transmission line.
During the mission, the team made a field visit, worked with Lai Chau Hydropower Project Management Unit, People’s Committee of Muong Te District, interviewed the affected households in Muong Te, Nam Nhun resettlement areas, Muong Nhe natural protection area, etc, made survey to project areas of Lai Chau Hydropower Plant, 500kV Son La – Lai Chau transmission line and 500kV Son La substation.
The project is constructed to tranfer capacity from Lai Chau Hydropower Plant and the medium- and small-scale hydropower ones in North-Western area into the national power grid, as well as optimize the operation of power system to meet the load demands in the North and national-wide. The scope of project is to construct a 500kV and double-circuit transmission line, with a total length of 159km and install equipment for two (02) 500kV feeders at the 500kV Son La substation. According to plan, the project will be started in December 2013 and completed in December 2015 when the 1st unit of Lai Chau Hydropower Plant put into operation.
With such importance of the project as well as EVNNPT’s shortage of fund for investment, EVNNPT strongly believes and hopes that the German Government and KfW will provide a financing approval for this project in an earliest time.
Some photos taken during the field trip: