Vietnam Electricity (EVN) Secures €65 Million Loan for Tri An Hydropower Plant Extension

Introduction

On June 24, Vietnam Electricity (EVN) signed a loan agreement worth €65 million (approximately $75.5 million) with the German state-owned development bank KfW to finance the Tri An Hydropower Plant Extension project in Dong Nai province, southern Vietnam.

Project Overview and Sustainable Development Goals (SDGs) Alignment

The Tri An Hydropower Plant Extension is designed to add 200 MW capacity alongside the existing Tri An Hydropower Plant, the last dam in the cascade before the Dong Nai River flows through Ho Chi Minh City.

This project strongly supports several Sustainable Development Goals (SDGs), including:

1. SDG 7: Affordable and Clean Energy – By increasing renewable energy capacity, the project contributes to a stable and cost-effective electricity supply.
2. SDG 9: Industry, Innovation, and Infrastructure – The extension incorporates international technical standards and sustainable infrastructure development.
3. SDG 13: Climate Action – The project is environmentally friendly, reducing reliance on fossil fuels and lowering greenhouse gas emissions.
4. SDG 15: Life on Land – It complies with environmental and social standards to minimize ecological impact.

Significance of the Loan Agreement

• This marks the first time KfW has provided a direct loan to EVN without requiring a government guarantee, highlighting trust and confidence in EVN’s operational capacity.
• The agreement underscores the long-term partnership between EVN and KfW in promoting sustainable energy development aligned with SDG 17: Partnerships for the Goals.

KfW’s Support to EVN and Vietnam’s Energy Sector

KfW is one of Germany’s largest banks and a key development partner for EVN. Since 2009, KfW has signed nine official development assistance (ODA) and non-refundable loan agreements with EVN, totaling approximately €891.5 million ($1.04 billion). Of these, six projects have been completed and fully disbursed.

Furthermore, KfW has committed around €800 million ($929 million) in ODA capital, preferential loans, and non-government guaranteed loans to support new EVN ventures and those of its member companies, reinforcing sustainable energy infrastructure development in Vietnam.

Related Sustainable Energy Initiatives

• AFD and EVNNPT Financing Deal: The French Development Agency (AFD) signed a €67 million ($75 million) financing agreement with Vietnam National Power Transmission Corporation (EVNNPT) to expand and modernize the power transmission grid, supporting SDG 7 and SDG 9.
• EVN and Chinese Transformer Manufacturer BTW Cooperation: EVN met with BTW to explore expanded cooperation in power transmission and clean energy, advancing Vietnam’s sustainable energy network in line with SDG 7 and SDG 17.
• EU and France Support for Hydropower Sector Modernization: Under the Team Europe initiative, technical assistance is provided to improve EVN’s Health, Safety, and Environment (HSE) management system and optimize operation and maintenance for the Ialy hydropower plant, promoting SDG 3 (Good Health and Well-being), SDG 8 (Decent Work and Economic Growth), and SDG 12 (Responsible Consumption and Production).

Conclusion

The Tri An Hydropower Plant Extension project represents a critical step towards Vietnam’s sustainable energy future. Through strategic partnerships and adherence to international environmental and social standards, the project advances multiple Sustainable Development Goals, ensuring a resilient, clean, and inclusive energy sector for Vietnam.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses the Tri An Hydropower Plant Extension project, which aims to provide a stable, cost-effective, and environmentally friendly electricity supply.
   • It highlights cooperation for expanding and modernizing power transmission grids and clean energy development.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The modernization of power transmission grids and enhancement of operation and maintenance procedures for hydropower plants are infrastructure and innovation-related activities.
3. SDG 13: Climate Action
   • The project aligns with sustainable development and environmental standards, indicating efforts to mitigate climate change impacts by promoting renewable energy.
4. SDG 17: Partnerships for the Goals
   • The article emphasizes international partnerships between EVN, KfW, AFD, EU, France, and other entities supporting sustainable energy development in Vietnam.

2. Specific Targets Under Those SDGs Identified

1. SDG 7 Targets
   • Target 7.1: Ensure universal access to affordable, reliable, and modern energy services.
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
2. SDG 9 Targets
   • Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure.
   • Target 9.5: Enhance scientific research and upgrade technological capabilities of industrial sectors.
3. SDG 13 Targets
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
4. SDG 17 Targets
   • Target 17.6: Enhance North-South, South-South, and triangular regional and international cooperation on and access to science, technology, and innovation.
   • Target 17.9: Enhance international support for implementing effective and targeted capacity-building.

3. Indicators Mentioned or Implied to Measure Progress

1. SDG 7 Indicators
   • Indicator 7.1.1: Proportion of population with access to electricity (implied by the project’s goal to ensure stable electricity supply).
   • Indicator 7.2.1: Renewable energy share in the total final energy consumption (implied by hydropower expansion).
   • Indicator 7.a.1: International financial flows to developing countries in support of clean energy research and development (reflected by loans and financial agreements).
2. SDG 9 Indicators
   • Indicator 9.1.1: Proportion of the rural population who live within 2 km of an all-season road (implied by infrastructure development).
   • Indicator 9.5.1: Research and development expenditure as a proportion of GDP (implied by technical assistance and modernization efforts).
3. SDG 13 Indicators
   • Indicator 13.2.1: Number of countries that have communicated the establishment or operationalization of an integrated policy/strategy/plan which increases their ability to adapt to the adverse impacts of climate change (implied by adherence to environmental standards and sustainable development guidelines).
4. SDG 17 Indicators
   • Indicator 17.6.1: Fixed Internet broadband subscriptions per 100 inhabitants, by speed (implied by international cooperation and technology transfer).
   • Indicator 17.9.1: Dollar value of financial and technical assistance (including through North-South, South-South and triangular cooperation) committed to developing countries (explicitly mentioned through loans and technical assistance).

4. Table of SDGs, Targets, and Indicators

Source: vir.com.vn