Vietnam Electrician

Study on Economic Partnership Projects
in Developing Countries in FY2014
Study on the Ultra Super Critical Coal-Fired Power Plants

in Bac Lieu, the Socialist Republic of Vietnam
Final Report
February 2015
Prepared for:
Ministry of Economy, Trade and Industry
Ernst & Young ShinNihon LLC
Japan External Trade Organization
Prepared by:
Kyushu Electric Power Co., Inc.
Preface
This report summarizes the results of ”Study on Private-Initiative Infrastructure in Developing Countries in
FY2014” which the Ministry of Economy, Trade, and Industry of Japan commissioned Kyushu Electric Power
Co., Inc.
This study, “Study on Ultra Super Critical Coal-Fired Power Plants in Bac Lieu, Vietnam”, realized a project,
which total project cost is about 250 billion Yen, for constructing large-scale coal-fired power stations that uses
the excellent, highly efficient technology of Japan in order to solve specific problem of electrical supply
insufficiency in Southern Vietnam.
It is hoped that this report will be of some help for realizing the above project and serve as reference for the
parties concerned in Japan.
February 2015
Kyushu Electric Power Co., Inc.
Project Map
China
Hanoi
Laos
Vietnam
Thailand
Cambodia
Ho Chi Minh
Ho Chi Minh
Duyen Hai Coal

Terminal Planned Site
Bac Lieu Power Plant
0km 50km 100km
Source: Created by Study Team

ABBREVIATION
Abbreviation Nomenclature
BC Buyer's Credit
BOT Build, Operate and Transfer
B/C Benefit Cost Ratio
℃ Degree Celsius
CO2 Carbon Dioxide
COD Commercial Operational Date
CIRR Commercial Interest Reference Rate
DONRE Department of Natural Resources and Environment
DWT Dead Weight Tonnage
EHS Environmental, Health and Safety Guidelines
EIA Environmental Impact Assessment
EIRR Economic Internal Rate of Return
EPC Engineering, Procurement and Construction
ERAV Electricity Regulatory Authority of Vietnam
EVN Vietnam Electricity
FIRR Financial Internal Rate of Return
g Gram
GDE General Directorate of Energy
GDP Gross Domestic Product
EVNGenco2 EVN Power Generation Corporation 2
GW Giga Watt (1GW = 1,000,000 kilo Watt)
GWh Giga Watt hour (1GWh = 1,000,000 kilo Watt hour)
2
ha Hectare (1ha = 100a = 10,000 m )
IE Institute of Energy
IFC International Finance Corporation
IPP Independent Power Producer
JBIC Japan Bank for International Cooperation
JETRO Japan External Trade Organization
JICA Japan International Cooperation Agency
km kilo meter (1km = 1,000 meter)
2
km square kilo meter (1km2 = 1,000,000 m2)
kt kilo ton (1kt = 1,000 ton)
kW kilo Watt (1kW = 1,000 Watt)
kWh kilo Watt hour (1kWh = 1,000 Wh)
m meter
3
m Cubic meter
MOF Ministry of Finance
MOIT Ministry of Industry and Trade
MONRE Ministry of Natural Resources and Environment
MPI Ministry of planning and Investment
Abbreviation Nomenclature
Master Plan for national electricity development in period 2011-2020 with the vision
PDP7
to 2030 (called Master Plan VII)
NO2 Nitrogen Dioxide

NOx Nitrogen Oxides
NPV Net Present Value
O&M Operation and Maintenance
ODA Official Development Assistance
PM Particle Matter
PM10 Particle Matter under 10µm
PM2.5 Particle Matter under 2.5µm
PPA Power Purchase Agreement
PPP Public Private Partnership
PVN Petro Vietnam
SC Super Critical
SO2 Sulfur Dioxide
Sox Sulfur Oxides
USC Ultra Super Critical
US¢ United State Cent
US$ United State dollar
V Voltage
VAT Value Added Tax
VINACOMIN Vietnam National Coal - Mineral Industries Holding Corporation Limited
TABLE OF CONTENTS
Preface
Project Map
Abbreviation
Contents
Executive Summary
(1) Background and Justification of the Project············································································· 1
(2) Basic Policies in Determining the Contents of the Project ···························································· 2
(3) Project Outline··············································································································· 4
(4) Planned Project Schedule ·································································································13
(5) Implementation Feasibility ·······························································································13
(6) Technical Advantages of Japanese Company ··········································································15
(7) Map Indicating the Location of the Project in the Country Studied ················································17
Chapter 1 Overview of the Host Country and Sector

(1) Economic and Financial Status of the Host country ·································································1-1
1) Overall status of Vietnam································································································1-1
2) Overall economy··········································································································1-2
a) Outline ····················································································································1-2
3) Industrial structure········································································································1-3
4) Fiscal revenue and expenditure ·························································································1-3
5) Foreign direct investment ·······························································································1-4
6) Infrastructure policies ····································································································1-4
(2) Outline of the Sector Involved in the Project ·········································································1-6
1) Structure of the power sector ···························································································1-6
a) MOIT: Ministry of Industry and Trade ···············································································1-6
b) ERAV: Electricity Regulatory Authority of Vietnam·······························································1-7
c) IE: Institute of Energy ··································································································1-7
d) MONRE: Ministry of Natural Resources and Environment ······················································1-7
e) MOF: Ministry of Finance ·····························································································1-7
f) MPI: Ministry of planning and Investment ··········································································1-7
g) SBV: State Bank of Vietnam ··························································································1-8
h) PPCs: Provincial Peoples Committees ···············································································1-8
2) Electric power providers ·································································································1-8
a) VINACOMIN: Vietnam National Coal - Mineral Industries Holding Corporation Limited ·················1-9
b) PVN：Petro Vietnam ···································································································1-9
3) Electricity status of Vietnam ·························································································· 1-14
a) Power demand ········································································································· 1-14
b) Power supply composition ··························································································· 1-15
c) Transmission & distribution losses ················································································· 1-16
d) Rate of electrification ································································································· 1-17
(3) Status of the Project Area ······························································································ 1-18
1) Geography and administrative bodies ··············································································· 1-18
2) Land use ················································································································· 1-19
3) Population ··············································································································· 1-19
4) Industry ·················································································································· 1-19
5) Resources ················································································································ 1-19
Chapter 2 Study Methodology

(1) Contents of the Study ·····································································································2-1
1) Study and examination of technological matters ·····································································2-1
2) Research and examination of matters on the environmental and social aspects ·································2-1
3) Study and examination of financial and economic feasibility ······················································2-2
4) Compilation of the action plan and issues towards the realization of the Project ·······························2-2
(2) Study Methodology and Systems ·······················································································2-2
1) Study methodology ·······································································································2-2
2) Study structure ············································································································2-2
(3) Study Schedule ············································································································2-4
1) Overall schedule ··········································································································2-4
2) Result of the field studies································································································2-5
a) 1st field study (Oct. 20 – 30, 2014) ···················································································2-5
b) 2nd field study (Dec. 3-13, 2014) ······················································································2-6
c) 3rd field study (Feb. 8-14, 2015) ······················································································2-7
Chapter 3 Justification, Objectives and Technical Feasibility of the Project

(1) Background and Justification of the Project, etc. ·····································································3-1
1) Background of the Project ·······························································································3-1
2) Demand forecast and construction plans in PDP7 ···································································3-1
3) Discussion of issues of PDP7 ···························································································3-9
4) Scope and beneficiaries of the Project ··············································································· 3-10
5) Effects and impacts from the Project implementation ····························································· 3-10
6) Comparison of alternatives ···························································································· 3-10
(2) For Sophisticated and Streamlined Energy Use ···································································· 3-11
1) Technology adopted for coal-fired thermal power generation in Vietnam ····································· 3-11
2) Technology adopted for the Project ·················································································· 3-12
3) For sophisticated and streamlined energy use ······································································ 3-12
(3) Examinations Needed for the Determination of the Project Contents ··········································· 3-12
1) Power demand estimation ····························································································· 3-13
2) Understanding and analyzing issues for examining and determining the Project contents ·················· 3-14
a) Status of planned power plant site ·················································································· 3-14
b) Procurement of water for plant use ················································································· 3-18
c) Status and developmental plans for the transmission systems ·················································· 3-23
d) Coal procurement ····································································································· 3-35
e) Steam requirements for the plants ·················································································· 3-38
f) Fuel properties of the potential coal used ·········································································· 3-38
g) Environmental load ··································································································· 3-40
h) Funding methods ······································································································ 3-40
3) Technological methods ································································································ 3-40
a) Power generation method ···························································································· 3-40
b) Type of desulfurization equipment ················································································· 3-41
c) Scale of coal receiving facilities ···················································································· 3-41
(4) Outline of the Project Plan ····························································································· 3-42
1) Basic policies in determining the Project contents································································· 3-42
a) Project implementing entity ························································································· 3-42
b) Period of the Project implementation ·············································································· 3-42
c) Installed capacity ······································································································ 3-42
d) Connection to the power grid························································································ 3-42
e) Coal procurement methods ·························································································· 3-44
f) Methods of procuring water for plant use ·········································································· 3-44
g) Securing access routes and procuring plant construction materials ············································ 3-44
h) Power source for construction work ················································································ 3-45
2) Concept design and facility specifications ·········································································· 3-45
a) Site layout plan ········································································································ 3-45
b) Boiler and auxiliary equipment ····················································································· 3-47
c) Steam turbine and turbine auxiliary equipment ··································································· 3-48
d) Power generation facilities··························································································· 3-50
e) Control device ········································································································· 3-52
f) Environmental facilities ······························································································ 3-56
g) Water facilities for the power plants ················································································ 3-59
h) Coal loading facility ·································································································· 3-62
i) Civil engineering facilities ··························································································· 3-65
3) The content of the proposed Project ················································································· 3-74
a) Planned power plant site ····························································································· 3-74
b) Outline of main power plant plans ·················································································· 3-74
4) Issues in adopting suggested technology and systems and their solutions ····································· 3-75
a) Coal procurement method···························································································· 3-75
b) Offshore engineering work for the port facility development ·················································· 3-75
c) Method of procuring water for plant use ··········································································· 3-75
d) Transmission line development schedule ·········································································· 3-75
e) Protection of mangrove forests around the planned power plant site ·········································· 3-76
f) Development of access road, etc. to the planned power plant site ·············································· 3-76
g) Lack of experience in O&M for SC and USC plants such as once-through boiler ·························· 3-76
Chapter 4 Evaluation of Environmental and Social Impacts

(1) Analysis of Current Environmental and Social Situation····························································4-1
1) Site location ···············································································································4-1
2) Natural environment ·····································································································4-2
a) Weather condition ·······································································································4-2
b) Geography and geology ································································································4-4
c) River water ···············································································································4-5
d) Sea water ·················································································································4-6
e) Status of the ecosystems································································································4-7
3) Social environment ·······································································································4-8
a) Land use in the Dong Hai district (2012 statistical yearbook data) ··············································4-8
b) Ethnic groups ············································································································4-9
c) Social infrastructures (2012 statistical yearbook) ··································································4-9
(2) Environmental Improvement Effects from the Project Implementation········································· 4-12
1) Environmental and mitigation measures for air quality ··························································· 4-12
a) Sulfur Oxides ·········································································································· 4-12
b) Nitrogen Oxides ······································································································· 4-12
c) Particle Matter ········································································································· 4-12
d) Environmental-related reference values used in the Project ···················································· 4-12
2) Estimation of air pollutant diffusion ················································································· 4-13
a) Methodology ··········································································································· 4-13
b) Calculation conditions ································································································ 4-13
c) Calculation results····································································································· 4-15
3) Environmental and mitigation measures for the eco-systems ···················································· 4-18
a) Situation with the mangrove outside of the levee (sea side) ···················································· 4-18
b) Situation with the mangroves inside the levees (land side) ····················································· 4-18
c) Environmental considerations based on the mangrove growth situation ······································ 4-19
(3) Environmental and Social Impact of the Project Implementation················································ 4-22
1) JICA Guidelines ········································································································ 4-22
2) Confirmation result regarding environmental considerations for the Project ·································· 4-22
(4) Outline of Vietnamese Laws on Environmental and Social Considerations and Compliance Measures ··· 4-30
1) Environmental administration of Vietnam ·········································································· 4-30
2) Outline of Vietnamese environmental laws ········································································· 4-30
a) Laws related to environmental assessment ········································································ 4-30
b) Environment-related air quality standards relevant to thermal power generation projects ················· 4-31
c) Environment-related standards for water quality relevant to thermal power projects ······················· 4-33
d) Environmental standard for waste applicable to thermal power projects ····································· 4-41
e) Environmental standards for noise applicable to thermal power projects ····································· 4-41
f) Environmental standard for vibration applicable to thermal power projects ·································· 4-42
3) Outline of environmental impact assessment (EIA) in Vietnam ················································· 4-43
a) Projects for which EIA must be implemented ··································································· 4-43
b) Implementation of EIA ····························································································· 4-43
c) Recreation of EIA reports ···························································································· 4-43
d) Main contents in EIA reports ······················································································ 4-43
e) Authorities to review EIA reports ················································································· 4-44
f) Review of the EIA report ····························································································· 4-44
g) Approval of the EIA report ·························································································· 4-44
h) Project implementing entity’s responsibility after the approval of EIA report ······························· 4-45
i) Project implementing entity’s responsibilities prior to the operation of the project·························· 4-45
j) Responsibilities of the EIA report approving institution ························································· 4-45
4) Environmental and social impacts from the project implementation············································ 4-45
(5) Responsibilities of the Host Country for the Realization of the Project ········································· 4-48
Chapter 5 Financial and Economic Evaluation

(1) Project Cost Estimation ··································································································5-1
1) Construction cost ·········································································································5-1
2) Running cost ··············································································································5-4
a) Fuel cost ··················································································································5-4
b) O&M cost ················································································································5-4
c) Depreciation··············································································································5-4
d) Interest cost ··············································································································5-4
e) Corporate tax·············································································································5-4
(2) Result of the Preliminary Financial and Economic Analyses ·······················································5-4
1) Economic analyses ·······································································································5-4
a) Assumptions··············································································································5-5
b) Calculation result········································································································5-6
2) Financial analyses ········································································································5-7
a) Conditionality ············································································································5-7
b) Calculation result········································································································5-8
c) Estimated tariff ··········································································································5-9
Chapter 6 Planned Project Schedule

(1) Approval of revised PDP7 ·······························································································6-1
(2) Feasibility study ···········································································································6-1
(3) Environmental and social impact assessment ·········································································6-1
(4) Financing arrangement ···································································································6-1
(5) Acquisition of licenses and permissions ···············································································6-2
(6) Consultant selection ······································································································6-2
(7) Infrastructure construction and site work ··············································································6-2
(8) EPC bid ·····················································································································6-2
(9) Construction and installation work ·····················································································6-2
(10) Coastal work ·············································································································6-2
Chapter 7 Implementing Organization

(1) Outline of the Implementing Organization ············································································7-1
1) EVN: Vietnam Electricity ·······························································································7-1
a) Power generation companies ··························································································7-2
b) EPTC：Electric Power Trading Company ··········································································7-2
c) NLDC: National Load Dispatching Center ··········································································7-2
d) NPT: National Power Transmission corporation ···································································7-2
e) Distribution and retail company (PC: Power Corporation)························································7-3
2) Financial status of EVN ·································································································7-3
(2) Vietnam’s Organizational Scheme for the Project Implementation ················································7-4
(3) Evaluation of the Vietnamese Implementing Organizations’ Ability and Measures (if insufficient) ··········7-5
Chapter 8 Technical Advantages of Japanese Company

(1) Expected Forms of Participation for Japanese Company····························································8-1
(2) Advantages of Japanese Company for the Project Implementation················································8-1
1) Technological advantages ·······························································································8-1
2) Economical advantages ··································································································8-2
(3) Necessary Measures to Promote Contracting Japanese Company ·················································8-3
Executive Summary
(1) Background and Justification of the Project
According to the IMF statistics as of October 2014, Vietnam’s economic growth rate is 5.5%, slowing down
compared to the average growth rate of 6.4% for the past ten years. However, demand for electricity remains high,
growing at the rate of 10% or higher, and this trend is expected to continue into the future. To meet this demand,
power sources have been developed pursuant to 7th National Power Development Master Plan No.1208/QD-TTg
(PDP7) which was promulgated on July 21, 2011 by the Ministry of Industry and Trade of Vietnam (MOIT).
According to the plan, the generation capacity up to 40,000MW is slated to be developed by 2015, 75,000MW by
2020, and 138,000MW by 2030. Of this capacity, PDP7 aims to increase the capacity of coal-fired thermal power
to 15,000MW (ratio to the total capacity: 35%) by 2015, 36,000MW (48%) by 2020, and 72,000MW (52%) by
2030.
Ever since the promulgation of PDP7, the development of many power projects, mainly coal-fired thermal power
projects, were launched including IPP projects implemented by Vietnam Electricity (EVN) and other
government-run companies, as well as BOT projects in which foreign investors participated. However, especially
large-scale coal-fired thermal power generation projects failed to start operation according to the plan, due to
issues related to the funding ability of electric power providers and insufficient ability of EPC contractors such as
those from China to manage construction.
Further, China constructed rigs for oil drilling in May 2014 in Vietnam’s territorial waters without prior consent,
triggering a riot. It in turn caused Chinese investors and EPC contractors to pull out en masse. The construction of
many of the coal-fired power plants ceased temporarily, saddling Vietnam with huge risks associated with power
source development in the future.
Aside from coal-fired thermal power, gas-fired thermal power has suffered similar issues. Chevron (USA), the
operator of the Block B gas field which is off the shore of Ca Mau Province and was expected to supply gas for O
Mon Thermal Power Plant Complex in the southern region, stated its withdrawal in 2013, undermining the
prospect for the development of a power source equivalent to 3,000MW.
Given these situations, power supply in 2017 and after is expected to be tight especially in the southern region,
and the Vietnamese government issued a Prime Minister Decision No.2414 (Nov. 2013) and designated Vinh Tan
4 coal-fired thermal power plant (1200MW) in Bình Thuan Province, Long Phu 1 coal-fired thermal power plant
(1200MW) in Soc Trang Province and Duyen Hai 3 coal-fired thermal power plant (660MW) in Tra Vinh
Province as the utmost priority plants for urgent development and urged early development of these power sources
through measures such as specially allowing the selection of EPC contractors without bidding.
Since there is a concern that the development of projects may be delayed as described above, Bac Lieu coal-fired
thermal power project has drawn attention since around the end of 2013 as a case whose development needs to be
accelerated, in order to start operation sooner than 2028 which had been the plan at the time of the promulgation
of PDP7.
1
This Project is Phase 1 (1,200MW) of the power generation complex planned for the Dong Hai district, Bac Lieu
Province in southern Vietnam with the total output of 3,600MW, and its scope includes a coal-fired thermal power
generation plants, port facilities for coal transportation and water intake and discharge facilities. Once completed,
it is expected to supply electricity not only to the customers in Ho Chi Minh, a city of commerce, but also to the
customers in southern Vietnam in and around Bac Lieu Province, thereby improving energy security.
According to the Provincial People's Committee of Bac Lieu, the development of the road system in the
surrounding areas and invitation of industrial complexes will be promoted through the construction of Bac Lieu
thermal power plant; thus the job creation in the province is also anticipated.
The project is planned as coal-fired thermal power project that utilizes imported coal, for which a proposal can be
made to adopt ultrasuper critical technologies as the first project of the kind in Vietnam by utilizing eco-friendly
coal-fired thermal power technologies that Japan takes pride in. By adopting the idea, it can contribute to the
solving of electric power shortage and help reduce the coal use more than the supercritical power generation can,
and thus environmental load.
Also, the adoption of the ultrasuper critical technologies for this project is expected to encourage the participation
of private funds and other donors and promote the full-fledged dissemination of ultrasuper critical technologies in
Vietnam.
(2) Basic Policies in Determining the Contents of the Project

Vietnam has mainly exported high-quality anthracite coal mined in the Quang Ninh area in the northeast region of
the country to Japan and South Korea while generating electricity using low-quality anthracite coal obtained in the
coal preparation process through subcritical coal-fired power generation, or using subbituminous coal that is
produced in the coal field in the Red River delta through subcritical coal-fired thermal power generation.
However, the efficiency of these coal-fired thermal power plants is low at around 30%, and the use of domestic
coal will be difficult in the future, from the standpoint of environmental load reduction and the increase in mining
costs due to a switch from open-pit mining to underground mining. In this context, more plans are drawn in recent
years for supercritical coal-fired thermal power plants that use imported coal, especially for the central to southern
regions on the country.
The Vietnamese government is deliberating the adoption of ultrasuper critical coal-fired thermal power as projects
for 2020 or later. EVNGenco2, an entity expected to be responsible for implementation, has stated its intention of
discussing the adoption of ultrasuper critical power technologies. EVN, its parent company, also indicated its own
willingness to be the one to implement Vietnam’s first ultrasuper critical thermal project. Once a formal approval
was given as an investor in the revised PDP7, it wishes to prepare investment reports (detailed FS), consider
prices and timing for implementation, and decide on the adoption of ultrasuper critical technologies. Thanks to
2
various studies backed by the Japanese government regarding the adoption of ultrasuper critical technologies in
Vietnam, the level of recognition and understanding of the necessity for the ultrasuper critical technologies has
increased steadily in the country.
In this light, this study compares and examines both supercritical and ultrasuper critical power generation from the
technological and economical viewpoints. Also, a comparative investigation is conducted for the adoption of a
1,000MW unit which can achieve maximum economy of scale from adopting ultrasuper critical technologies and
a 600MW unit which are the mainstream in subcritical and supercritical power generation in Vietnam.
The coal for this project is planned to be imported coal. However, the Bac Lieu area is in the Mekong Delta region,
and the development of port facilities for large coal ships will be difficult. There is a coal terminal plan in
neighboring Tra Vinh Province, which is a PPP project utilizing funds from JICA and for which a FS is in progress.
Thus, a comparative investigation is done for transportation with domestic vessels of 10,000DWT using this
terminal and transportation with ocean-going vessels of 30,000DWT which will travel from outer sea directly into
Bac Lieu.
Since the implementing entity of Bac Lieu 1 is planned to be EVNGenco2, buyer’s credit (BC) and yen loan
assistance are examined in terms of financing. And also financing option of IPP/BOT is examined.
Mangroves are found naturally in the area where the power plant is planned to be sited, and the original plan
called for the coal storage yard and disposal yard to be located in the area of mangroves. In order to reduce the
development on the land with the mangrove forest, a plan is drawn to move the site toward inland and an
appropriate layout is decided by asking for suggestions from the Vietnamese government, Provincial People’s
Committee of Bac Lieu, EVN, EVNGenco2 and other organizations.
Transmission lines are planned to be connected to Thot Not Substation which is 124km away from the planned
site, using two-circuit, 500kV transmission lines. For smooth acquisition of the land and construction work for the
transmission lines, it is necessary to minimize the number of provinces that transmission lines travel through. In
this study, an assumption is made that the transmission lines connect Can Tho City, Hau Giang Province and Bac
Lieu Province, even though the detailed transmission line plan will have to be updated once the revised PDP7 is
approved to reflect the revisions.
3
(3) Project Outline
1) The contents of project and the study of technical aspect
This project is intended to plan a supercritical pressure or ultra-supercritical coal-fired power plants based on the
premise of overseas coal use , in order to relax Vietnam domestic power supply and demand , in particular,
contribute to the power supply in Vietnam southern region, contributing to whole Vietnam energy security better.
The study of the technical aspects of this project is to perform the power plant planning by assuming the use of
imported coal satisfying the following coal properties.
Table 1 Estimated range of design coal property
Coal Property Criteria

Allowable Unallowable
Moisture 8～16 % ＞ 16 %
Inherent moisture 3～10 % ＞ 10 %
Calorific value 5980 ～ 6554 kcal/kg ＜ 5980 kcal/kg
(Equilibrium moisture base）
Ash (Equilibrium moisture base） 4～16 % ＞ 16 %
Volatile matter 36～42 % ＜ 36 % or ＞42 %
Sulfer 0.4～1.4 % ＞ 1.4 %
MgO+Na2O in ash 1.5～4.0 % ＜ 1.0 %, ＞ 4.0 %
K2O in ash 1.0～2.0 % ＜ 0.6 %, ＞ 2.0 %
SiO2/Al2O3 ratio in ash ＜ 2.5 ＞ 3
HGI ＞ 50 ＜ 45
Ash melting point ＞ 1250 ℃ ＜ 1200 ℃
Coal particle diameter ＜50 ㎜：100 %、＜1 ㎜：＜15 % ＜1 ㎜：＞ 15 %
Source：Presented by study group
4
And regarding the power generation facilities plan , with a view to the introduction of supercritical pressure or
ultra-supercritical plant, it is to be planned each required facility/equipment and layout consideration under the
assumption of the following terms and conditions.
Table 2 The design outline of this project
Fuel procurement Coal imported from foreign countries (Indonesia, Australia, Russia, etc.)
via marine transportation
Transmission line
Connected to the 500kV system or to the 500kV and 220kV systems
connection
Plant 600MW-class SC plant 600MW-class USC plant 1,000MW-class USC
configuration × 2 units × 3 phases × 2units × 3 phases plant
× 1 unit × 3 phases
Steam condition Main steam：24.1MpaA, 566Ԩ Main steam：24.1MpaA, 593Ԩ
Reheat steam temp.：566Ԩ Reheat steam temp.：593Ԩ
Plant efficiency
41.08 % 41.88 % 41.96 %
(HHV, Gross)
Plant cooling
Use sea water from nearby sea
water
Boiler type
Supercritical pressure variable pressure operation once-through boiler: radiant reheat type
Turbine type Tandem compound 4

Tandem compound 3 casing 4 flow exhaust
casing 4 flow exhaust
Reheat-regenerative type
Reheat-regenerative type
Source: Presented by study group
5
As an example of results through this investigation and study, power plant layout plan of the case that configuring
in one phase per 600MW scale ultra-supercritical plant × 2 units for 3 phases is shown as follows .
Table 3 Layout option of 600MW-class Ultra supercritical plant × 2 units
Site Layout for 3 phases Power Train Configuration

30,000DWT option 10,000DWT option Power Train for 1 phase
6
2) Construction cost
The construction cost was calculated by referring to the contract amounts for recent and similar coal-fired thermal
power plants in Vietnam and other Southeast Asian countries. The result is shown in Tables 4 and 5. Phase 1
which is covered in this study aims to develop common facilities serving all the power plants (substation, power
and harbor, land preparation, etc.) and includes the cost for those facilities. Therefore, costs listed under Phase 1
are higher in comparison to other similar projects.
Table 4 Estimated construction cost for Bac Lieu power plants (Phase 1) with the 30,000DWT ship plan
(US$ Million)
Case 1 Case 2 Case 3
Item 600MW×2 600MW×2 1000MW×1
SC USC USC
Boiler & flue gas desulfurization
1 635 646 523
equipment
2 Steam turbine & generator 455 461 373
Other equipment and civil

3 658 658 501
engineering and construction work
4 Port system 257 257 257
5 Substation 22 22 19
Land acquisition & preparation, and

6 82 82 82
compensation
7 Consultant fee & management fee 54 54 53
8 Contingency 216 218 181
9 Total 2,379 2,398 1,987
Source; Prepared by Stud Group
7
Table 5 Estimated construction cost for Bac Lieu power plants (Phase 1) with the 10,000DWT ship plan
(US$ Million)
Item 600MW×2 600MW×2 1000MW×1
SC USC USC
1 635 646 523
equipment
3 658 658 501

6 94 94 94
compensation
9 Total 2,268 2,287 1,876
Table 6 shows the breakdown of each cost to the foreign funds and domestic funds for Case 2. The ratio is similar
in other cases.
Table 6 Breakdown of construction cost for Case 2: USC 600MW×2 units, 30,000DWT plan
Foreign portion Domestic portion Total
Item
(US$ million) (VND billion） (US$ million)
1 483 3,470 646
equipment
2 Steam turbine & generator 376 1,804 461
Other equipment & civil

457 4,273 658
3 engineering work
4 Port system 39 4,639 257
Land acquisition & preparation,
6 0 1,734 82
and compensation
8 Contingency 141 1,630 218
9 Total 1,554 17,930 2,398
Exchange rate; US$1=VND21,246

8
3) Result of the Preliminary Financial and Economic Analyses
The preliminary financial and economic analyses in this study are conducted according to Decision
2014/2007/QD-BCN, which stipulates the methodology of financial and economic analyses for power generation
projects in Vietnam. The economic analyses such as Economic Internal Rate of Return (EIRR) and their
sensitivity analyses are carried out first, followed by the calculation of Financial Internal Rate of Return (FIRR).
The main assumptions used for the calculation are shown in Table 7.
Table 7 Main assumptions
Item Value Remarks
A higher value than other coal-fired power plants considering
Tariff US¢9.1/kWh that imported coal is used and common facilities for the entire
plants are developed during Phase 1
Annual operation time 6,500 hr./year Stipulated in Decision 2014/2007/QD-BCN
Calculated based on the assumed specifications and properties

Thermal efficiency (SC) 41.08%
of coal assumed to be used
Thermal efficiency Calculated based on the assumed specifications and properties
41.88%
(600MW USC) of coal assumed to be used
Thermal efficiency Calculated based on the assumed specifications and properties
41.96%
Auxiliary power ratio 7.8% The value from the similar projects is used
Escalation rate N.A. Not considered based on Decision 2014/2007/QD-BCN
Yen-denominated interest rate for Vietnam’s EVN

Interest rate (BC) 2.19%
( CIRR 1.24% + risk premium 0.95% )
The longest redemption period for power plants is applied
Repayment period (BC) 12year
Standard condition of Yen-loan for Vietnam

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

30year
(Yen loan)
Discount Rate 10% Stipulated in Decision 2014/2007/QD-BCN
Debt Equity ratio 7:3 The value from the similar projects is used
9
a) Economic analyses
The result of the calculation with these conditions is given in Table 8. In all cases, EIRR is higher than 10%, the
hurdle rate stipulated by the decrees, the Benefit Cost Ratio is greater than one (1) and NPV is a plus figure; thus
the Project is judged to have economic value.
When 30,000DWT cases and 10,000DWT cases are compared, 10,000DWT cases have higher EIRR since the
cost for construction and regular dredging is less.
Table 8 EIRR, B/C and NPV
Case 1 Case 2 Case 3 Case 4 Case 5 Case 6

600MW×2 600MW×2 1,000MW×1 600MW×2 600MW×2 1,000MW×1
SC USC USC SC USC USC
30,000DWT 10,000DWT
Economic
Internal Rate of 10.01% 10.11% 10.27% 10.53% 10.63% 10.91%
Return (EIRR)
Benefit Cost
1.00 1.00 1.01 1.02 1.03 1.04
Ratio (B/C)
Net Present
2 23 47 104 125 150
Value (NPV)
b) Financial analyses
The yield of Vietnam’s 10-year government bonds has gone down from about 12% in 2012 to 7.2% as of the end
of December 2014. Considering the yield of 10-year government bonds as the hurdle rate, FIRR is greater than
this value in all cases, making the Project viable from the financial point of view.
Table 9 EIRR, and NPV with the 30,000DWT ship plan
Case 1 Case 2 Case 3 Case 2’ Case 3’

600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1
SC USC USC USC USC
BC BC BC Yen-loan Yen-loan
Financial Internal
Rate of Return 15.47% 15.68% 16.03% 23.86% 24.24%
(FIRR)
Net Present Value

484 507 447 906 777
(NPV)
10
Table 10 FIRR, and NPV with the 30,000DWT ship plan

600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1
SC USC USC USC USC
Financial Internal
Rate of Return 16.58% 16.79% 17.41% 25.06% 25.70%
(FIRR)
Net Present Value

558 581 520 961 832
(NPV)
4) Environmental and social impacts from the project implementation

a) Impacts on ecosystems (cutting of mangroves)
A mangrove wetland exists along the coast near the Project site, but it is not designated as a special protection
area. According to the World Bank’s safeguard policies, mangroves are considered to be a natural habitat.
Natural habitats are classified into Categories A and B, and no financing will be approved if a grave change or
deterioration of natural habitat will occur in Category A. For Category B, if it is decided that the impact is not
grave, there is no alternative, and overall benefits from the project are much greater than the environmental
costs, financing is approved with conditions to incorporate appropriate mitigation measures.
With this in mind, a proposal has been made to move the site toward inland in order to minimize the
environmental impacts, from the usual site for power plants which usually face a coast. Natural forests
including mangroves are managed by the Provincial People’s Committee of Bac Lieu and for any forest
development in excess of 20ha, a notification to change the land use must be submitted and the approval of the
prime minister obtained. Any work must proceed by checking with the Provincial People’s Committee of Bac
Lieu that oversees the regional development. The people’s committee received the proposal to move the site
inland to protect mangroves favorably.
b) Impacts on ecosystems (thermal effluent)

During the plant operation, a large quantity of cooling water will be discharged into the sea; thus, the effect that
thermal effluent and sea water temperature rise have on the ecosystems must be examined on the continuous
basis starting in the EIA stage.
11
c) Pollution measures (air)
At this point, there is no large factory that causes air pollution in the area. It will be necessary to implement
appropriate measures to control air pollution from transporter vehicles during construction, flue gas during
operation, coal dust from coal transporting facilities and dust from ash disposal sites.
d) Pollution measures (water quality)

On the northern and western sides, shrimp farms have been developed. In shrimp farming, insecticide and
herbicide are used and sites are emptied and disinfected using lime regularly, producing a large quantity of
polluted water. The water is then discharged to the sea outside of the levees..
According to the residents, the quality of the water taken has worsened due to effluent from the factories
upstream. It has caused the shrimp harvest to go down but they don’t know who to turn their anger on. If the
power plants are is to be developed, water quality before the development must be examined in an open manner
with the coordination with the people’s committee so that the project will not be blamed for the water quality
deterioration.
e) Pollution measures (noise)

Even through the measured noise level around the power plant has not been obtained, it was confirmed that
there is no large source of noise during the field study. With a residential area along the river on the eastern side
of the power plant, the noise level near the current boundary must be checked and evaluated. In some cases, the
reduction of nighttime work, construction of partial sound barrier in the adjacent area and other measures might
be required.
f) Pollution measures (waste)

Coal ash and gypsum will be produced through the operation of the Project. Coal ash will be transferred to the
disposal site using the slurry method. While the capacity of the disposal site seems sufficient, further
examination will be needed to reduce the size of the ash disposal site with the plans to reduce waste by utilizing
coal ash and gypsum in bricks, etc.
g) Social environment (resettlement of residents)

The residents subject to resettlement due to construction on the site live mainly along the river. In other areas,
there are shrimp monitoring huts. Some houses seem to make living by serving as a rest area for bikers. Based
on the field survey, those subject to resettlement due to the Project will be 30 households (about 120 persons) in
the case of 30,000DWT, and 140 households (about 560 persons) in the case of 10,000DWT. There are many
aqua-culture ponds and salt fields in this area, therefore, when the site is prepared before the construction work,
houses and aqua-culture ponds must be relocated. Thorough consideration is needed during the EIA stage.
12
h) Social environment (work environment)
The area around the site is a poor area where it is hard to obtain drinking water since wells only produce sea
water. It is necessary to develop infrastructures for the area in order to secure food, clothing and housing for a
large number of workers as well as for locally hired workers during construction and staff in charge of
operation. It is important to build hospitals to prepare for any injury or diseases.
(4) Planned Project Schedule

Figure 2 shows the planned project schedule:
Figure 2 Planned project schedule
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Approval of revised
PDP7
Site Masterplan
Feasibility study (FS)
Environmental and social
impact assessment
Financing arrangement
Acquisition of licenses and
permissions
Consultant selection
Infrastructure construction
and site work
EPC bid
Unit1 Unit2
Construction and installation
work
Coastal work (dredging,
levee, etc.)
Source: prepared by Study Group
(5) Implementation Feasibility

The study revealed that the project will not be eligible for yen load assistance thus the use of BC is desirable if
supercritical technologies are adopted. However if ultrasuper critical technologies are adopted, the implementation
of the project is feasible in both of the financial scenarios. It was also confirmed that if the price of coal goes up
more than assumed in the study, the project is not feasible in the case of the adoption of supercritical technologies.
13
It is best to judge financial requirements based on the examination of the detailed layout, project costs, appropriate
types of imported coal and detailed coal supply methods, etc. in the detailed FS to be conducted in the future
while carrying out environmental and social impact assessment. Currently, EVN wishes to implement Vietnam’s
first ultrasuper critical thermal power project, and for this purpose is interested in yen loan assistance.
It was confirmed that the start of operation for the project is planned to be accelerated to 2023 in the revised PDP7
from the original 2028. The timing of the project gives enough leeway in schedule for both financial cases of yen
load assistance and BC, and will be after five or so years after the start of operation of supercritical coal-fired
thermal power plants in 2018, giving the country an opportunity to build operational knowhow. This timing
should create the right situation for the adoption of ultrasuper critical technologies. EVNGenco2 intends to carry
out detailed FS as well as environmental and social impact assessments as soon as the revised PDP7 is approved.
At this point, the revised PDP7 is expected to be approved by the government over the second quarter of 2015.
EVNGenco2 is an entity that was established in June 2012 to be financially independent from EVN, and its
financial situation is currently tight; however it is expected to recover in 2016 - 2017 thanks to operational
efficiency improvement and the loan program by ADB to support Genco.
Since foreign banks, Japanese banks and local banks remain willing to offer loans to large-scale state-run
companies such as EVN and PVN (Petro Vietnam) and the level of public bonds including
government-guaranteed bonds is kept at an appropriate level, the financing arrangement is likely to be possible.
In case supercritical or ultrasuper critical technologies are adopted, EVNGenco2’s operating ability does not seem
to be a cause of concern since the company has experience operating subcritical coal-fired thermal power plants
and has taken on a primary role in O&M training for coal-fired thermal power in Vietnam by offering O&M
training at its Pha Lai coal-fired thermal power plant to other power providers upon construction of new coal-fired
power plants. However, supercritical and ultrasuper critical power plants are different from subcritical power
plants in terms of technologies and operation; thus training by the manufacturers and O&M support from other
donors will be desirable.
The site location poses no particular problem thanks to the overall backup by the Provincial People’s Committee
of Bac Lieu which is the governing body of the site and the favorable relationship between EVNGenco2 and the
people’s committee. The basic agreement has been reached regarding the protection of mangrove, since the
negotiation has been carried out based on the proposal to move the site and mangroves work to prevent the
scattering of coal dust and fly ash.
However in the detailed FS, there will be a need for evaluation after calculation of land acquisition costs and
confirmation of the number of residents to be resettled, etc. based on the detailed layout. Also, since the site is in
the Mekong Delta area, the amount of necessary civil and coastal work will be greater than usual; thus the
economical evaluation is one of the important consideration points.
14
The transmission line plan will be corrected once the revised PDP7 is approved to reflect the revisions, and NPT
in charge confirmed that the steel tower construction is easy but the land acquisition often takes time; therefore it
is best to plan ahead. It also was confirmed that ADB indicated its interest in financing the said plan. Currently,
ADB has extended a line of credit of up to 7,300,000 USD to NPT, and is considering the extension of its period
by two to three years from the original 2020. The detailed FS should consider the use of such fund.
(6) Technical Advantages of Japanese Company

1) Technical advantages
With Japan’s low rate of energy self-sufficiency, it has to rely on fuel imported from overseas, and as a result, it
has a keen interest in highly efficient use of energy and has tackled the technological development for
high-efficiency thermal power generation. Prompted by the worldwide concern for global warming in recent years,
Japan has continuously worked to develop technology for environmental protection including those for ultrasuper
critical power generation, flue-gas desulfurization equipment and electrostatic precipitator to reduce
environmental load such as CO2, NOx, SOx, particle matters, etc. emitted from coal-fired thermal power plants.
Thanks to these technological developments, Japan’s thermal power generation technology and products are at
a globally high level, and the thermal power field has gained economical and environmental advantages. The use
of Japanese heavy electric machinery makers could be an attractive option for Vietnam.
Also, with regard to the power plant construction technique, Japan’s heavy electric machinery manufacturers are
excellent in managing schedules for construction work. Building a power plant can take a long time and the ability
to stick to a schedule in such work is very important in a situation with electric power shortage such as one that
Vietnam is experiencing.
Moreover, as for the operation and maintenance technology for coal-fired power plants, Japanese power
companies have accumulated ample O&M experiences and knowledge as well as technology to utilize various
types of coal especially imported coal and technology to effectively utilize resources, such as the use coal ash
generated from power plants in civil work and building material., etc..
For the reasons above, and the technological advantages of thermal power generation facilities, O&M technology
and experience addressing issues particular to coal-fired thermal power generation facilities, and other
comprehensive technological abilities superior to many other countries, the use of Japan’s coal-fired thermal
power generation technology is likely to be attractive to Vietnam.
2) Economical advantages
To demonstrate the advantages of Japanese companies in international competition, it is important for the
government and private sector to join force and promote the export of an infrastructure package that includes the
supply of infrastructures, excellent technology, financing, O&M, etc. While infrastructure projects tend to have
higher project cost that comes with undertakings by Japanese companies in other countries could be reduced
through collaboration with those companies and public institutions such as JBIC (BC, Overseas investment loans),
JICA (Yen loan), etc.
With regard to collaboration with public institutions, President Obama of the USA announced the Climate Action
15
Plan in June 2013, and declared to end the use of public funds to assist new construction of coal-fired thermal
power plants overseas. He also requested other countries and multilateral development banks to take similar
actions without delay, spreading the move among public institutions in Europe and the United States to limit the
public financing and support for coal-fired thermal power plants.
On the other hand, Japan’s policy is to offer strategic economic cooperation and infrastructure systems including
coal-fired thermal power plants, on the belief that if the introduction of a coal-fired thermal power plant is
required, Japan will contribute to increasing the plant efficiency and lowering carbon emissions. There are cases in
Vietnam where JBIC financed a new coal-fired thermal power project for which the Export-Import Bank of the
United States had stopped financing.
When offering financing support to overseas projects, it is important for the government and private sector to
work together and share roles, with the government bearing the political risks in addition to contributing and
financing necessary funds. NEXI’s trade insurances play an important role when promoting the export of
infrastructure systems.
16
(7) Map Indicating the Location of the Project in the Country Studied
Figure 3 Location of Bac Lieu coal-fired TPP
China
Hanoi
Laos
Vietnam
Thailand
Cambodia
Ho Chi Minh
Ho Chi Minh
Duyen Hai Coal

Terminal Planned Site
Bac Lieu Power Plant
0km 50km 100km
17
Chapter 1 Overview of the Host Country and Sector
(1) Economic and Financial Status of the Host country
1) Overall status of Vietnam

The proper name for Vietnam is the Socialist Republic of Vietnam and the name “Vietnam” comes from a Chinese
word meaning “a state of Viet in the south.” Vietnam is a country located on the eastern coast of Indochina in
Southeast Asia, and is elongated in shape stretching about 1,650km from north to south and 600km from east to
west. Most of the nation’s land is on the eastern side of the Annamite Range that run from north to south in
parallel to the Pacific Ocean coastline on Indochina; thus the width from east to west is only 50km at the
narrowest point. The nation shares its borders with China to the north and Laos and Cambodia to the west, and
faces the South China Sea to the south and east.
The land area of Vietnam is about 330,000 km2, and is close to the size of Japan’s total area excluding Kyushu.
For the purpose of regional administration, the country has five cities directly managed by the government, which
are Hanoi, Ho Chi Minh, Da Nang, Hai Phong and Can Tho, and 58 provinces.
Much of the nation’s history is that of repeated invasions and controls by outside forces, and it was not until 38
years ago in 1976 that Vietnam won its independence and national unification. Since 1987, the nation has
promoted its economic prosperity through a market-oriented economic reform, and by forging ties with
international markets by joining WTO, ASEAN and APEC. The population of Vietnam is about 91,700,000 (as of
2013), which is the third largest of the ASEAN member countries following Indonesia and Philippine.
1-1
2) Overall economy
Under the Doi Moi (renewal) policy issued in 1986, the nation’s economic growth accelerated since the 1990s,
and the nation achieved the economic growth at the rate of over 9% in the middle of the 1990s. However, the rate
of economic growth plummeted to 4.8% in 1999, after the sharp drop in the foreign investment triggered by the
1997 Asian currency crisis. Faced with the challenge, the Vietnamese government set up a 10-year national
strategy in 2000 to double the GDP and increase he share of industrial sector in the GDP to 40% in 10 years.
Thanks to the effort to run the nation by placing priority on economic growth, the real GDP growth rate had
remained over 7% between 2000 and 2007. However after 2008, the rate of growth fell to 5-6% due to the
increase in trade deficit causing the reduction in foreign currency reserves, currency depreciation and price hike.
Table 1-1 Basic Economic Indicators in Vietnam
Unit 2008 2009 2010 2011 2012 2013

Real GDP growth rate ％ 5.7 5.4 6.4 6.2 5.3 5.4
Nominal GDP milion USD 91,094 97,180 106,427 123,679 155,820 171,222
GDP per capita USD 1,154 1,181 1,297 1,532 1,753 1,902
Inflation rate ％ 23.1 6.7 9.2 18.7 9.1 6.6
Unemployment rate ％ 4.7 4.6 4.3 3.6 3.2 3.6

Exchange rate
VND／USD 16,977 17,941 18,932 20,828 20,828 21,036
(end of period)
Outstanding external
milion USD 26,488 33,085 49,343 57,841 44,900 49,100
debt
External debt
％ 32.4 41.6 42.2 41.5 41.1 40.4
(ratio to GDP)
Source: Presented by study group based on the data of IMF World Economic Outlook Database October 2014 and
JETRO
In 2011, the Vietnamese government announced a resolution to shift its focus from the economic growth of the
nation to inflation control. Since then, the national economy stabilized thanks to the great increase in export due to
high demand for smart phones and the recovery of the foreign direct investment, and the inflation ended. Since
2012, the government has taken a new direction of monetary ease by lowering interest rates. The export by
foreign-capital companies that were set up in Vietnam through direct foreign investments helped foreign currency
reserves to increase significantly. In 2013, the inflation rate reached the lowest level in the past 10 years, and the
pressure of inflation had eased.
Table 1-2 Foreign trade and foreign currency reserve
Unit 2008 2009 2010 2011 2012 2013
Total export milion USD 62,685 57,096 72,191 96,906 114,631 132,135
Total import milion USD 80,714 69,949 84,801 106,750 114,347 132,125
Balance of trade milion USD -18,029 -12,853 -12,610 -9,844 284 9

Foreign currency
milion USD 23,890 16,447 12,467 13,539 25,573 25,894
reserve
Source: JETRO
1-2
3) Industrial structure
Vietnam’s key industry had been agriculture until the 1980s. Ever since the introduction of market economy under
the Doi Moi policy of 1986, the share of the primary industry (agriculture, forestry and fisheries industry ) in GDP
has dropped and the share of the secondary (industry and construction) and tertiary (service) industries has
increased. However even now, the workers in the agriculture section account for half the total workers.
Table 1-3 Changes in GDP
2008 2009 2010 2011 2012 2013
Agriculture, forestry and fisheries 20.4% 19.2% 18.9% 20.1% 19.7% 18.4%
Mining and quarrying 9.1% 9.1% 10.0% 10.3% 11.9% 11.5%
Manufacturing 18.6% 18.3% 18.0% 18.0% 17.4% 17.5%
Electricity, gas and heat supply 3.0% 3.4% 3.3% 3.2% 3.2% 3.5%
Water, waste and sewer 0.5% 0.4% 0.5% 0.5% 0.5% 0.5%
Construction 5.9% 6.1% 6.4% 5.9% 5.6% 5.3%
Wholesale, retail and repair 12.9% 13.3% 13.2% 13.1% 13.1% 13.4%
Transportation and storage 3.1% 3.1% 3.0% 3.0% 3.0% 3.0%
Lodging and restaurant 3.5% 3.7% 3.7% 3.8% 3.8% 3.9%
Communication 1.1% 1.1% 1.1% 0.9% 0.8% 0.8%
Real estate 6.4% 6.4% 6.2% 6.0% 5.6% 5.4%
Others 15.5% 15.9% 15.7% 15.3% 15.5% 16.9%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Source: JETRO
4) Fiscal revenue and expenditure

The Vietnamese government has suffered a chronic deficit since the end of the 1990s due to the need for the
investment for social infrastructures and other items. The reasons for the high fiscal expenditures include demand
for the development of infrastructures prompted by rapid economic growth.
1-3
Table 1-4 Revenue and expenditure of Vietnam
Unit 2008 2009 2010 2011 2012 2013
Revenue billion VND 429,523 462,877 588,234 719,403 733,446 820,954
Expenditure billion VND 437,416 571,807 647,711 748,897 954,229 1,021,243
Fiscal revenue and

expenditure billion VND -7,893 -108,930 -59,477 -29,494 -220,783 -200,289
Source: IMF World Economic Outlook Database October 2014
5) Foreign direct investment

The direct investment in Vietnam has increased steadily, promoted by the establishment of Law on Foreign
Investment (1988) and the lifting of economic sanctions by US (1992). Even though the investment decreased at
times due to impacts from Asian currency crisis, the amount of investment reached the highest level with 71.7
billion USD on the approval basis and 11.5 billion USD on the implementation basis in 2008 after joining WTO in
2007. After Lehman's fall, the level of investment has fluctuated at the same level, and the amount of the foreign
direct investment in Vietnam in 2013 was 22.4 billion USD on the approval basis and 11.5 billion USD on the
implementation basis.
Table 1-5 The amount of foreign direct investment
2008 2009 2010 2011 2012 2013
Amount on million USD 71,727 23,108 19,887 15,619 16,348 22,352

approved basis
Amount on the million USD 11,500 10,000 11,000 11,000 10,047 11,500
implementation basis
Number of
1,171 1,208 1,237 1,191 1,287 1,530
investment cases
Source: General Statistics of Vietnam
6) Infrastructure policies
In Vietnam’s investment environment, underdeveloped infrastructures pose a grave challenge, and foreign
companies and countries that are interested in investing in the country have expressed a strong desire for the
prompt development. However, the fund of the Vietnamese government is limited and investments by private
companies in infrastructure projects will be essential. In November 2010, the Vietnamese government issued
Decree 71 that set forth the conditions applied to PPP projects that are implemented with the investments by the
government and private sector (hereinafter PPP law).
Foreign-capital companies have a keen interest in the potential for infrastructure businesses in Vietnam and the
PPP law seemed to encourage private investments. However, the law imposes many challenging restrictions on
1-4
private businesses such as that “foreign investors (private) will be selected through open bidding.” Before the PPP
law came into effect, various schemes for the participation by private companies in the infrastructure businesses
have been introduced, such as BOT (build-operate-transfer) and BT (build-transfer). However, there are very few
infrastructure projects through which the private companies make profit if there is no added activity. The reasons
include 1 the utility rates are cheaper than neighboring countries, 2 low transparency with regard to permissions,
procedures and interpretation of laws. Other issues for foreign-capital companies to finance the projects are that
projects without the governmental guarantee tend to have higher risks, raising the hurdle for participation.
The most important infrastructure to be developed in Vietnam is power sources. Since the summer of 2009, there
have been frequent planned outages in summer, affecting manufacturers significantly. If the situation of unstable
power supply continues, it could discourage foreign investments which have been steady to this point. To further
promote power source developments, Vietnamese companies (IPP) and foreign-capital companies (BOT) in
addition to EVN (Vietnam Electricity) are allowed to participate in the power generation industry.
The main power source is expected to shift from hydropower to coal while investments focus on small-scale
hydropower generation in rural regions. There are some investments in renewable energy, especially in wind
power, but with the low subsidy level from the government, those projects are not likely to be profitable.
During the national convention of the Communist Party of Vietnam in 2011, the “2010-2020 socioeconomic
development strategy” was adopted, in which the goals were set to raise the annual economic growth rate to 7-8%
and annual earning per capita in 2020 to 3,000USD. To achieve these goals, it is essential to reduce the annual
trade deficit of 10 billion USD, and for that, the continuous measures to improve the investment environment are
needed. Of those measures, the development of infrastructures such as electricity, port and harbor facilities, roads,
railways, and water supply and sewerage systems are of utmost importance. The creation of an attractive business
environment for foreign investors involved in the infrastructure businesses will be one of the urgent tasks of the
Vietnamese government.
Figure 1-1 Change in infrastructures investments
Source: Business Monitor International Vietnam Infrastructure Report
1-5
(2) Outline of the Sector Involved in the Project
1) Structure of the power sector
Figure 1-2 is of the association chart of the main agencies involved in electricity-related matters.
Figure 1-2 Power sector association chart
Government
office
MPI MOIT GDE MONRE MOF
IE ERAV
EVN PVN VINACOMIN IPPs Customers
Power Suppliers
a) MOIT: Ministry of Industry and Trade

The Ministry of Industry and Trade (MOIT) was created by merging of the former Ministry of Industry and
Ministry of Commerce that regulated and oversaw electricity and energy fields in July 2007, and MOIT took over
responsibilities of the former Ministry of Industry and controls electricity and energy fields in addition to
industries. MOIT’s main duties are listed below:
1. Draw laws and regulation, national developmental strategies and plans, and master plans for the industries
under its control
2. Implement and oversee laws and regulation, strategies and plans, and master plans
3. Grant permission to the industries under its control, such as for power source development plans and
electricity tariff
MOIT’s duties in the power field include those listed below:
1-6
1. Regulate O&M of power facilities and power dispatch
2. Grant permission for electricity tariff
3. Announce projects to promote investments (projects based on the master plans)
4. Approve electricity master plans prepared by provinces or cities under the direct control of the government
b) ERAV: Electricity Regulatory Authority of Vietnam

The Electricity Regulatory Authority of Vietnam (ERAV) was established in November 2005 to assist MOIT in
the management of the power sector and regulates the power market and electricity tariff.
c) IE: Institute of Energy

The Institute of Energy (IE) has been under the control of MOIT since 2007, after being under the Ministry of
Energy and then under the current EVN since 1995. It performs the same duties as before, including the
preparation of energy policies and national and regional power source development plans, as well as research on
electric facilities and equipment. It also assisted the preparation of PDP7.
d) MONRE: Ministry of Natural Resources and Environment

The Ministry of Natural Resources and Environment (MONRE) was established in 2002 through the restructuring
of the governmental organizations, for the purpose of strengthening measures against issues of environmental
pollution and to integrate various environmental administrative functions. Its duties include environment-related
tasks, preparation of environmental regulations, granting permission for exploration and development of mineral
resources, supervision and inspection in the natural resource field, and scientific and technological development
for natural resources.
e) MOF: Ministry of Finance

The Ministry of Finance (MOF) manages the national finance and budget, arranges the government guarantee for
export credits, and offers public financing to those who are eligible through DAF (Development Assistance
Fund).
f) MPI: Ministry of Planning and Investment

The Ministry of Planning and Investment (MPI) is responsible for the management of the national developmental
plans and the investment field, and performs duties below:
1. Prepare the national strategies and socioeconomic developmental plans (long-term, 5-year, yearly plans)
2. Guide and oversee the implementation of policies and related agencies based on the strategies and plans
3. Report to the government of the implementation status of the socioeconomic developmental plans
4. Coordinate between provinces as the contact window for the regional governments
5. Allocate invested money to ministries, agencies and regions based on the development plans
6. Establish and announce plans to invite foreign and domestic investments
7. Coordinate with other organizations such as MOF regarding the investment effect of foreign and domestic
investments
1-7
8. Grant permission to projects home and abroad based on the decisions of the government or prime
minister
9. Coordinate and manage matters regarding ODA and obtained approvals from the prime minister as
needed
g) SBV: State Bank of Vietnam

The State Bank of Vietnam (SBV) manages the foreign exchange allocation system and offers a guarantee for
foreign exchange. It is a financial institute involved in national aids.
h) PPCs: Provincial Peoples Committees

The Provincial Peoples Committees (PPCs) oversee the regional governments including all governmental powers
granted by the central government.
2) Electric power providers

Based on the electric policies of the Vietnamese government, the Vietnam Electricity or EVN has been established
as a state-run company to operate power generation, transmission and distribution systems, by integrating the
power sector. There are other power producers aside from EVN, such as IPP and BOT entities. As of the end of
2013, the installed generating capacity of the EVN Group account for about 60% of the total installed generating
capacity of 30,590,000kW. The IPP/BOT entities are established with 100% foreign capital, combination of
foreign and domestic capitals, or 100% domestic capital. The major IPP entities with 100% domestic capital
include VINACOMIN (Vietnam National Coal - Mineral Industries Holding Corporation Limited) and PVN.
Figure 1-3 Power generation by ownership in 2013
Source: EVN Annual Report 2012-2013
1-8
a) VINACOMIN: Vietnam National Coal - Mineral Industries Holding Corporation Limited
VINACOMIN is a corporation solely owned by the government for the coal and mineral development.
VINACOMIN operates 54 coal mines domestically, accounting for over 95% of coal produced within the country.
It was previously named Vietnam Coal and after the acquisition of Vietnam Mineral in 2005, the company took
the current form. The company group is comprised of 93 companies, with 134,000 employees. One of the
subsidiaries is VINACOMIN Power that implements IPP projects.
b) PVN：Petro Vietnam
Petro Vietnam (PVN) is a company solely owned by the government and is the largest energy company in
Vietnam. PVN’s formal name is Holding Company - Petro Vietnam Oil and Gas Group, but it is known
internationally as Petro Vietnam or PVN. It has its headquarters in Hanoi, and is engaged in a wide range of
businesses including search for oilfields, oil refinement, import and export of oil products, and investments in real
estate and power generation projects.
Table 1-6 shows the power generation facilities as of 2013.
Table 1-6 Installed Capacity of Power Plants in 2013
Installed
No Power Plant Number of Units Owner
Capacity (MW)
A Total installed capacity 30,597
Under EVN's direct
I 6,502
management
Hydropower 6,502
1 Hoa Binh 8x240 1,920 EVN
2 Son La 6x400 2,400 EVN
3 Tuyen Quang 3x114 342 EVN
4 Ialy 4x180 720 EVN
5 Se San 3 2x130 260 EVN
6 Pleikrong 2x50 100 EVN
7 Se San 4 3x120 360 EVN
8 Tri An 4x100 400 EVN
II EVN Genco1 4,505

a Hydropower 1,965
1 Ban Ve 2x160 320 EVN GENCO1
2 Song Tranh 2 2x95 190 EVN GENCO1
3 Dai Ninh 2x150 300 EVN GENCO1
4 Dong Nai 3 2x90 180 EVN GENCO1
1-9
5 Dong Nai 4 2x170 340 EVN GENCO1
Joint Stocks Co. with

6 Da Nhim 4x40 160
EVNGENCO1's shares

7 Ham Thuan 2x150 300
EVNGENCO1's shares

8 Da Mi 2x87.5 175
EVNGENCO1's shares
b Coal-fired power 2,540

1 Uong Bi 2x55 110 EVN GENCO1
2 Uong Bi (extension) 300 300 EVN GENCO1
3 Uong Bi (extension 2) 330 330 EVN GENCO1

4 Quang Ninh 1 2x300 600
EVNGENCO1's shares

5 Quang Ninh 2 2x300 600
EVNGENCO1's shares
6 Nghi Son 1 2x300 600 EVN GENCO1
III EVN Genco2 3,549

a Hydropower 817
1 Quang Tri 2x32 64 EVN GENCO2
2 Song Ba Ha 2x110 220 EVN GENCO2
3 An Khe-Kanak 2x80+2x6.5 173 EVN GENCO2

4 A Vuong 2x105 210
EVNGENCO2's shares

5 Thac Mo 2x75 150
EVNGENCO2's shares
b Coal-fired power 1,940

1 Pha Lai 1 4x110 440
EVNGENCO2's shares

2 Pha Lai 2 2x300 600
EVNGENCO2's shares

3 Hai Phong 1 2x300 600
EVNGENCO2's shares

4 Hai Phong 2 1x300 300
EVNGENCO2's shares
c FO-fired Thermal Power 528

1 Thu Duc 2x66+1x33 165 EVN GENCO2
2 Can Tho 1x33 33 EVN GENCO2
3 O Mon 1.1 1x330 330 EVN GENCO2
d DO-fired Gas turbine 264
1-10
1 Thu Duc 23.5+15+2x37.5 114 EVN GENCO2
2 Can Tho 4x37.5 150 EVN GENCO2
IV EVN Genco3 4,013

a Hydropower 1,062
1 Ban Chat 2x110 220 EVN GENCO3
2 Buon Kuop 2x140 280 EVN GENCO3
3 Buon Tua Srah 2x43 86 EVN GENCO3
4 Srepok 3 2x110 220 EVN GENCO3

5 Thac Ba 3x40 120
EVNGENCO3's shares

6 Vinh Son 2x33 66
EVNGENCO3's shares

7 Song Hinh 2x35 70
EVNGENCO3's shares
b Coal-fired power 100

1 Ninh Binh 4x25 100
EVNGENCO3's shares
c Gas turbine 2,851

2x144+164
1 Phu My 2.1 896 EVN GENCO3
+2x138+168
2 Phu My 1 3x239+391 1,108 EVN GENCO3
3 Phu My 4 2x145+168 458 EVN GENCO3

4 Ba Ria 2x23.4+6x37.5+58+59 389
EVNGENCO3's shares
B OTHER INVESTOR 12,028

I Hydropower (≥ 30 MW) 2,990
1 Cua Dat 2x48.5 97 Domestic investor
2 Nam Chien 2 2x16 32 Domestic investor
3 Thai An 2x41 82 Domestic investor
4 Su Pan 3x11.5 35 Domestic investor
5 Huong Son 2x16.5 33 Domestic investor
6 A Luoi 2x85 170 Domestic investor
7 Bac Ha 2x45 90 Domestic investor
8 Nho Que 3 2x55 110 Domestic investor
9 Ba Thuoc 40+80 80 Domestic investor
10 Muong Hum 32 32 Domestic investor
11 Chiem Hoa 3x16 48 Domestic investor
12 Ta Co (Nam Cong 2) 30 30 Domestic investor
13 Nam Phang 2x18 36 Domestic investor
1-11
14 Nam Chien 1 2x100 200 Domestic investor
15 Khe Bo 2x50 100 Domestic investor
16 Hua Na 2x90 180 Petro VN
17 Ta Thang 2x30 60 Domestic investor
18 Van Chan 3x19 57 Domestic investor
19 Sesan 3A 2x54 108 Domestic investor
20 Song Con 2 3x20+3 63 Domestic investor
21 Srepok 4 2x40 80 Domestic investor
22 Krong H'nang 2x32 64 Domestic investor
23 Huong Dien 3x27 81 Domestic investor
24 Bac Binh 2x16.5 33 Domestic investor
25 Binh Dien 2x22 44 Domestic investor
26 Za Hung 2x15 30 Domestic investor
27 Dak Psi 4 3x10 30 Domestic investor
28 Se San 4A 3x21 63 Domestic investor
29 Dak R'tih 2x41+2x31 144 Domestic investor
30 Dak Mi 4 2x74+2x21 190 Domestic investor
31 Song Bung 5 2x28.5 57 Domestic investor
32 Song Bung 4A 2x24.5 49 Domestic investor
33 Srepok 4A 1x32 32 Domestic investor
34 Can Don 2x38.8 78 Domestic investor
35 Srokphumieng 2x25.5 51 Domestic investor
36 Da Dang 2x17 34 Domestic investor
37 Dam Bri 1x37.5 37.5 Domestic investor
38 Xekaman 3 (Laos) 2x125 250 Domestic investor
Small Hydropower
II 1,589
(<30MW)
1 Small Hydropower in the North 820 Domestic investor
2 Small Hydropower in the Central 657 Domestic investor
3 Small Hydropower in the South 112 Domestic investor
III Coal-fired power 2,478

1 Na Duong 2x55 110 VN Coal & Mineral Co.
2 Cao Ngan 2x57.5 115 VN Coal & Mineral Co.
3 Son Dong 2x110 220 VN Coal & Mineral Co.
4 Cam Pha I 1x330 330 VN Coal & Mineral Co.
5 Cam Pha II 1x330 330 VN Coal & Mineral Co.
6 Mao Khe 2x220 440 VN Coal & Mineral Co.
7 Vung Ang 1 1x623 623 Petro VN
8 Formosa 2x155 310 Foreign investor

1-12
IV Oil fired Power 522
1 Amata 2x6.5 13 Foreign investor
2 Hiep Phuoc 3x125 375 Foreign investor
3 Dung Quat Oil Filter 104 104 Domestic investor
4 Bauxite Aluminum Manufactory 30 30 Domestic investor
Gas-turbine, Gas Thermal

V 4,316
Power
1 Phu My 3 733 Foreign investor
2 Phu My 2.2 733 Foreign investor
3 Ca Mau 1 771 Petro VN
4 Ca Mau 2 771 Petro VN
5 Nhon Trach 1 465 Petro VN
6 Nhon Trach 2 750 Petro VN
7 Vedan 72 Foreign investor
8 Dam Phu My 21 Foreign investor
VI Wind power and others 133

1 Tuy Phong 20x1.5 30 Domestic investor
2 Phu Qui 3x2 6 Domestic investor
3 Bac Lieu 10x1.6 16 Domestic investor
4 Gia Lai Sugar 12 12 Domestic investor
5 Ayun Pa Sugar 19.5 20 Domestic investor
6 Ninh Hoa Bagasses 8.3 8 Domestic investor
7 Cam Ranh Bagasses 11.2 11 Domestic investor
8 Soc Trang Sugar 6 6 Domestic investor
9 Bourbon 2x12 24 Foreign investor
1-13
3) Electricity status of Vietnam
a) Power demand
When a country experiences a phase of rapid development, the increase in power demand is usually greater than
the country’s economic growth. Such is the case with Vietnam and the power consumption in Vietnam is
increasing every year by more than 10%. The industry and construction sectors take up about 50% of the national
power consumption and the consumption is expected to be pushed especially by furnace manufacturers that are
planned to be built along the coast and cement factories that are essential in infrastructure development. The
power consumption by the civilian sector accounts for about 40%, and it could show a great increase if home
appliances such as air conditioners become popular in rural regions. To meet such rate of power demand increase,
the power source must be developed with great urgency.
Figure 1-4 Change in Electricity demand
Others
Agriculture, forestry and fisheries
Commerce
Residential consumer
Industry
Source: JETRO
1-14
b) Power supply composition
Figure 1-5 shows the ratio of installed capacities by power source in Vietnam as of 2013. The
country relies heavily on hydropower as evidenced in hydropower generation facilities accounting for about
half the total installed capacity.
Figure 1-5 Power generation by installed capacity in 2013
Source: EVN Annual report 2012-2013
To meet the country’s rapidly increasing power demand, PDP7 aims to increase the installed generating capacity
from 30,590 MW in 2013 to 146,800 MW in 2030, almost quintupling the capacity. The capacity will be increased
by about 10% annually and the composition of power sources will shift from the heavy reliance on hydropower to
coal accounting for over half of the capacity as shown in the figure. By 2030, nuclear power might be added to the
power sources.
Figure 1-6 Power Balance in Vietnam
Source: PDP7
1-15
c) Transmission & distribution losses
Thanks to EVN’s effort to raise transmission & distribution voltage including its main systems, improvements
made on the systems and facility standards, as well as facility renewals, the losses have gone down every year to
less than 9% in recent years.
Figure 1-7 Transmission and distribution losses
Vietnam is narrow but about 2,300km long from north to south, and transmission and distribution is done and
power is exchanged with two 500kV transmission systems and over 20 substations, between the northern, central
and southern regions of the country. However improved, with the transmission loss factor of 9%, it is desirable to
supply power by balancing supply and demand for each area.
1-16
d) Rate of electrification
The electrification of rural Vietnam was pushed in the 1990s and the rate of electrification for households
increased from 50.6% in 1996 to 95.0% in 2009. The main reasons behind the increase include the promotion of
electrification after the establishment of EVN, and the aids recevied from other countries and the World Bank
toward electrification. The topographical features that Vietnam has such as a small number of remote islands and
the population concentrating in big cities seem to have helped.
Figure 1-8 Rural electrification
1-17
(3) Status of the Project Area
1) Geography and administrative bodies
Bac Lieu Province is located in the Mekong Delta region, about 280km southwest of Ho Chi Minh City. It shares
its borders with Can Tho City and Soc Trang Province to the north, and Kien Giang Province and Ca Mau
Province to the west, and faces the East Sea to the south. The province’s annual average temperature is 26 and
climate is very stable. The province also has a vast land suitable to forestation and agriculture. Bac Lieu Province
has one city and 6 districts (the provincial capital Bac Lieu City, Hoa Binh district, Dong Hai district, Gia Rai
district, Hong Dan district, Phuoc Long district and Vinh Loi district), with the total land area of about 246,900
hectares.
Figure 1-9 Map of Bac Lieu province
1-18
2) Land use
Of Bac Lieu Province’s total land area of about 246,900 hectares, about 102,900 hectares (41.6%) are used for
agriculture, about 4,700 hectares (1.9%) are forests, about 4,300 hectares (1.7%) are used as residential plots, and
about 11,000 hectares (4.5%) are used for other special purposes. Much of the land is suitable for farming and
about 98,295 hectares are developed annually to be used as rice paddies or for industrial crop cultivation.
3) Population
Bac Lieu Province has 20 ethnic minorities such as Khmer and ethnic Chinese peoples. The total population was
876,800 as of 2013, and the population density was 355 /km2. The population growth rate from 2005 to 2013 was
about 1.0% on average, almost the same as that for Vietnam.
Table 1-7 Population of Bac Lieu Province
Year 1995 2000 2005 2009 2010 2011 2012 2013

Population 709,500 749,700 812,800 856,800 863,300 873,300 873,400 876,800
Source: General Statistics of Vietnam
4) Industry
According to the 2012 statistics, the main industry in Bac Lieu Province is agriculture, accounting for about
51.39% of the GDP. Agriculture is followed by manufacturing with 24.58% and service industry with 24.03%.
Thanks to its rich water resources, marine product processing is a major industry in Bac Lieu Province and its
production is about 40,000 tons annually.
5) Resources
Bac Lieu Province is the largest salt producer in the Mekong Delta region. About 120,000 tons of salt is produced
every year in the 4,000-hectare salt marsh. With the 56 km-long coastline and fishing ground of 40,000 km2, about
240,000 tons of seafood including shrimp, squids and oysters is caught every year.
1-19
Chapter 2 Study Methodology
(1) Contents of the Study
For the purpose of constructing coal-fired thermal power generation plants in the relevant area in Vietnam, this
study examines the plans for the development of infrastructure that will be necessary for the operation of the
power plants, including those for facilities for receiving imported coal and transmission line connections, as well
as their feasibility. The study also investigates the conditions of the planned construction site, which need to be
considered from the viewpoint of the power plant construction and operation, such as ground, environment and
the situation of the residents in and around the site as well as the necessary measures. Based on the findings of the
study and examinations, and with a view to introduce ultrasuper critical power plants, the study considers the
concept and design of the power generation facilities, technological superiorities of Japanese corporations, and the
Project schedule, conducts financial and economical evaluations in association with power generation plant
construction and operation, and evaluate the feasibility of the Project.
In this study, for the purpose of considering the financing arrangement, items that are deemed necessary to
implement the Project with the use of buyer’s credit, etc. from the Japan Bank for International Cooperation
(JBIC), etc. such as environmental and social considerations and measures are organized categorically and
examined.
1) Study and examination of technological matters

Information is gathered from related documents issued by the counterparts or through field studies including
interviews with related organization and agencies, and research and examination of the technological feasibility
are conducted based on the past performance of supercritical and ultrasuper critical plants of Kyushu Electric
Power.
・Examination of the conditions of the planned construction site towards the development of coal-fired power
generation plants (soil, environment, climate, etc. )
・Feasibility study for the plan for fuel procurement with the utilization of imported coal
・Examination of plans for coal receiving facilities for the utilization of imported coal (port and harbor, etc.)
・Examination of plans for other necessary infrastructures (water, ash disposal, cooling water, transmission lines,
etc.)
・Examination and review of the concept and design for supercritical and ultrasuper critical power generation
facilities and construction schedule, etc.
2) Research and examination of matters on the environmental and social aspects

Information is gathered from related documents issued by the counterparts or through field studies including
interviews with related organization and agencies, and issues that might arise while proceeding with the Project
are extracted and their solutions are examined.
・Examination of the laws, regulations and standards, etc. that are relevant to the matters of environmental and
social considerations in Vietnam
2-1
・Examination of the environmental improvement effects as well as the environmental and social impacts from
the operation of the power generation plants
・Examination of the issues and countermeasures in terms of environmental and social considerations that are
necessary the implementation of the Project, etc.
3) Study and examination of financial and economic feasibility

Financial and economic analyses are carried out for the Project, based on the results of the examination of the
technological, environmental and social aspects (comparison of buyer’s credit, IPP/BOT and yen load assistance
is conducted).
・Calculation of the Project costs for the construction and operation of the power generation plants and the
examination of the financial models
・Preliminary financial and economic analyses, etc.
4) Compilation of the action plan and issues towards the realization of the Project
Based on the examination results above, the results of this study and matters to be suggested towards the next
study for the full-scale formation of the Project are organized categorically.
・Feasibility of the introduction of ultrasuper critical coal-fired thermal power generation technology
・Action plan for the future towards the realization of the Project
(2) Study Methodology and Systems
1) Study methodology
This study was carried out between October 9, 2014 and the end of February, 2015, and included three works on
the site in total, in which discussions with related organization and agencies, collection of existing materials and
data, confirmation of legal systems and frameworks related to the development of power plants, and survey of the
construction site, among other activities, were conducted. Inside Japan, collected data and materials were
organized and analyzed, an outline design of the power generation facilities was created, the Project costs were
roughly calculated, and the Project implementation plan was drawn. This report was prepared based on the results
of these activities.
2) Study structure
The implementation structure for this study is shown in the figure below:
2-2
Figure 2-1 Structure of study group
【Project manager】: 【Technological matters】:

Michio Mihara Yoshiro Adachi
(Role played in the study and (Role played in the study and research)
research) ・Oversees technological matters (mechanical)
・Oversees the project ・Overall study of coal-fired thermal power generation
technologies and plan, field studies and compilation of results
【Economic and financial analysis】:

Yasuhiro Maruta
(Role played in the study and research)
・Project cost quantity survey and financial analysis
・Field studies, current condition analysis, and compilation of
results
【Environmental and social analysis】:
Norihide Yamane
・Environmental impact assessment
・Social consideration analysis
【Technological and financial analysis - sub】:

Takeshi Iida
・Sub leader (technology and financial assistant)
・Coal-fired thermal power generation technologies and plan,
field studies and compilation of results
【Technology (chemical)】:
Takayuki Naganuma
・Water quality and environmental facilities-related matters
・Data collection and analysis
【Civil engineering】:
Hidenobu Ishimaru
・Civil engineering-related data collection and analysis
【Civil engineering】:
Ngoc Ha Tuan
・Civil engineering-related data collection and analysis
2-3
(3) Study Schedule
1) Overall schedule
Overall schedule for the study is shown below:
Figure 2-2 Study Schedule
2014 2015
Sep. Oct. Nov Dec. Jan. Feb.
(Work conducted in Japan)
1. Data collection from related documents
created by the counterparts, etc.
2. Plan for necessary infrastructures and
power generation facilities, etc. and
creation and examination of financial
models, etc.
3. Additional examinations and result
compilation, etc. Df/R deadline
4. Data organization and other tasks such as
revision of the report done in Japan as Final report
well as reporting
(Work conducted on site)
1. Field studies such as interviews with
related organizations and agencies, etc.
(1st field study)
2. Study of additional data based on the
examination results, etc.
(2nd field study)
3. Explanation of the study and
examination results to the counterparts in
Vietnam
2-4
2) Result of the field studies
a) 1st field study (Oct. 20 – 30, 2014)
The outline of the study and schedule were explained to the local organizations involved and an examination of
the planned site was done.
Table 2-1 1st field study schedule
Day Date Study Group activities

・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru, Ha): Fukuoka → Ho Chi
1 Oct. 20
Minh
2 Oct. 21 ・Meeting with PECC2
・Travel (Mihara, Iida) : Ho Chi Minh →Hanoi
3 Oct. 22 ・Visit to organizations involved (MOIT, IE and JETRO)
・Meeting with PECC2
・Visit to organizations involved (NPT, Vinacomin and JICA)
4 Oct. 23
・Visit to organizations involved (TEDI, EVN, JBIC, Japanese Embassy, etc.)
5 Oct. 24 ・Travel (Mihara, Iida) Hanoi→ Ho Chi Minh
6 Oct. 25 ・Data organization
7 Oct. 26 ・Data organization
・Travel (Mihara, Iida, Adachi, Maruta, Ha, Ishimaru, Yamane) Ho Chi Minh→ Can
8 Oct. 27 Tho
・Visit to organizations involved (GENCO2)
・Travel (Mihara, Maruta, Yamane, Ishimaru, Ha) Can Tho →Bac Lieu
9 Oct. 28 ・Site survey and visit to organizations involved (People’s Committee of Bac Lieu)
・Travel (Mihara, Maruta, Yamane, Ishimaru, Ha) Bac Lieu→カマウ
・Travel (Mihara, Maruta, Yamane, Ishimaru, Ha) Ca Mau→ Ho Chi Minh
10 Oct. 29
11 Oct. 30 ・Meeting with PECC2
・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru, Ha) Ho Chi Minh →
12 Oct. 31
Fukuoka
2-5
b) 2nd field study (Dec. 3-13, 2014)
The status was reported to the local organizations involved, information was collected, the planned site was
examined again, and the proposal to move the site for the mangrove protection was confirmed.
Table 2-2 2nd field study schedule

1 Dec. 3 ・Travel (Maruta, Iida) Fukuoka →Hanoi
・Visit to organizations involved (JBIC, JETRO and Sumitomo Corp.)
2 Dec. 4
・Travel (Adachi, Yamane) Fukuoka → Ho Chi Minh
・Visit to organizations involved (IE and GENCO2)
・Travel (Maruta, Iida) Hanoi→ Ho Chi Minh
3 Dec. 5 ・Travel (Adachi, Yamane) Ho Chi Minh→ Can Tho
・Travel (Adachi, Yamane) Can Tho → Ho Chi Minh
4 Dec. 6 ・Data organization
・Data organization
5 Dec. 7
・Travel (Ishimaru, Ha) Fukuoka → Ho Chi Minh
6 Dec. 8 ・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru、Ha) Ho Chi Minh → Can
Tho
・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru, Ha) Can Tho →Bac Lieu
7 Dec. 9 ・Site survey
・Travel (Iida) Bac Lieu→ Can Tho
・Travel (Iida) Can Tho →Hanoi
・Visit to organizations involved (ADB)
8 Dec. 10 ・Travel (Iida) Hanoi→ Ho Chi Minh
・Site survey
・Travel (Mihara, Adachi, Maruta, Yamane, Ishimaru, Ha) Bac Lieu→ Can Tho
・Travel (Mihara, Adachi, Maruta, Yamane, Ishimaru, Ha) Can Tho → Ho Chi Minh
9 Dec. 11
10 Dec. 12 ・Meeting with PECC2
・Travel (Mihara, Adachi, Maruta, Yamane, Iida, Ishimaru, Ha)Ho Chi Minh→
11 Dec. 13
Fukuoka
2-6
c) 3rd field study (Feb. 8-14, 2015)
The study result was reported to the local organizations involved.
Table 2-3 3rd field study schedule
1 Feb. 8 ・Travel (Mihara, Adachi, Iida, Ha) Fukuoka → Hanoi
2 Feb. 9 ・Visit to organizations involved (IE, GDE , EVN and Japanese Embassy)
3 Feb. 10 ・Travel (Mihara, Adachi, Iida, Ha) Hanoi → Ho Chi Minh
・Travel (Mihara, Adachi, Iida, Ha) Ho Chi Minh → Camau

4 Feb. 11 ・Visit to organizations involved (People’s Committee of Bac Lieu)
・Travel (Mihara, Adachi, Iida, Ha) Bac Lieu → Can Tho

5 Feb. 12
・Travel (Mihara, Adachi, Iida, Ha) Can Tho → Ho Chi Minh

6 Feb. 13
・Travel (Mihara, Adachi, Iida, Ha) Ho Chi Minh → Fukuoka
7 Feb. 14 ・Travel (Mihara, Adachi, Iida, Ha) Ho Chi Minh → Fukuoka
2-7
Chapter 3 Justification, Objectives and Technical
Feasibility of the Project
(1) Background and Justification of the Project, etc.
1) Background of the Project
According to the IMF statistics as of October 2014, Vietnam’s economic growth rate is 5.5%, slowing down
compared to the average growth rate of 6.4% for the past ten years. However, demand for electricity remains high,
growing at the rate of 10% or higher, and this trend is expected to continue into the future. To meet this demand,
power sources have been developed pursuant to 7th National Power Development Master Plan No.1208/QD-TTg
(PDP7) which was promulgated on July 21, 2011 by the Ministry of Industry and Trade of Vietnam (MOIT).
According to the plan, the generation capacity up to 40,000MW is slated to be developed by 2015, 75,000MW by
2020, and 138,000MW by 2030. The generation capacity as of the end of 2013 is 30,593MW. As for the ratio to
the total installed capacity as of the end of 2013, hydroelectric power is 48.78%, coal-fired thermal power 23.07%,
gas-fired thermal power 24.29%, and oil-fired thermal power 3.43%, demonstrating that the country is still
developing power sources with heavy reliance on hydroelectric power.
Given this situation, PDP7 aims to increase the ratio of coal-fired thermal power in the future, by working towards
15,000MW (ratio of 35%) by 2015, 36,000MW (ratio of 48%) by 2020, and 72,000MW (ratio of 52%) by 2030.
There is a plan to commence the operation of Vietnam’s first nuclear power plant in 2020 in Ninh Thuan Province
located in the south of the country. On the other hand, PDP7 makes reference to Bac Lieu coal-fired thermal power
plants stating that they are slated to start operation in 2028 and only preliminary studies have been conducted
within MOIT as a future supercritical coal-fired thermal power generation project, and at the time of the
promulgation of PDP7, no investor was selected.
2) Demand forecast and construction plans in PDP7

The trend of power demand increase in recent years is shown in Fig. 3-1:
Figure 3-1 Power demand increase (2007-2013)

3-1
Although the average increase rate between 2007 and 2013 is 12.27%, the construction plans are made based on
the forecasted increase of power demand of 14% for PDP7, which was obtained by referring to the increase rate up
to 2010 (see Figs. 3-2 and 3-3).
Table 3-1 Construction plans published in PDP7 (2011-2020)
Installed
Capacity
No. Plant name (MW) Investor
Projects operated in 2011 4187
1 Son La # 2,3,4 Hydro power Plant (HPP) 1200 EVN
2 Nam Chien #1 HPP 100 Song Da Corp.
3 Na Le (Bac Ha) #1,2 HPP 90 LICOGI
4 Ngoi Phat HPP 72 IPP
5 A Luoi #1,2 HPP 170 Central HydroPower joint stock company
6 Song Tranh 2 #2 HPP 95 EVN
7 An Khe- Kanak HPP 173 EVN
Se San 4A HYDRO POWER JOINT
8 Se San 4A HPP 63 STOCK COMPANY
9 Dak My 4 HPP 190 IDICO
VIET LAO POWER JOINT STOCK
10 Se Kaman 3 (Laos) HPP 250 COMPANY
CONSTRUCTION CORPORATION
11 Dak Rtih HPP 144 NO.1
12 Dong Nai 3 # 2 HPP 90 EVN
13 Dong Nai 4 # 1 HPP 170 EVN
14 Uong Bi MR#2 Thermal Power Plant (TPP) 300 EVN
15 Cam Pha II TPP 300 TKV
16 Nhon Trach 2 combined gas turbine 750 PVN
Wind Power + Renewable Energy 30
To be operated in 2012 2805
1 Son La #5, 5 HPP 800 EVN
2 Dong Nai 4#2 HPP 170 EVN
3 Nam Chien #2 HPP 100 Song Da Corp.
4 Ban Chat #1,2 HPP 220 EVN
HUA NA HYDROPOWER JOINT
5 Hua Na 1,2 HPP 180 STOCK COMPANY
6 Nho Que 3 #1,2 HPP 110 BITEXCO JOINT STOCK COMPANY
7 Khe Bo #1,2 HPP 100 VNPD
8 Ba Thuoc II #1,2 HPP 80 IPP
3-2
9 Dong Nai 2 HPP 70 IPP
10 Dam Bri HPP 75 IPP
AN KHANH ELECTRICITY JOINT
11 An Khanh I# 1 TPP 50 STOCK COMPANY
12 Vung Ang I #1 TPP 600 PVN
13 Formosa # 2 TPP 150 HUNG NGHIEP FORMOSA CO., LTD
1 Nam Na 2 HPP 66 IPP
2 Dak Rinh #1,2 HPP 125 PVN
BUON DON HYDRO POWER JOINT
3 Sre Pok 4A HPP 64 STOCK COMPANY
4 Hai Phong II # 1 TPP 300 EVN
5 Mao Khe #1,2 TPP 440 TKV
6 An Khanh I# 2 TPP 50 STOCK COMPANY
7 Vung Ang I #2 TPP 600 PVN
8 Nghi Son I#1 TPP 300 EVN
9 Nong Son TPP 30 TKV
1 Nam Na 3 HPP 84 IPP
BINH MINH
CONSTRUCTION&TOURISM JOINT
2 Yen Son HPP 70 STOCK COMPANY
VINH SON - SONG HINH
HYDROPOWER JOINT STOCK
3 Thuong Kontum #1,2 HPP 220 COMPANY
THIEN TAN HYDROPOWER JOINT
4 Dak Re HPP 60 STOCK COMPANY
5 Nam No (Laos) HPP 95 IPP
6 Hai Phong 2 # 2 TPP 300 EVN
7 Nghi Son I#2 TPP 300 EVN
8 Thai Binh II#1 TPP 600 PVN
9 Quang Ninh II#1 TPP 300 EVN
10 Vinh Tan II#1,2 TPP 1200 EVN
11 O Mon I#2 TPP 330 EVN
12 Duyen Hai I#1 HPP 600 EVN
3-3
1 Huoi Quang #1,2 HPP 520 EVN
2 Dong Nai 5 HPP 145 TKV
3 Dong Nai 6 HPP 135 DUC LONG GIA LAI COMPANY
VIET LAO POWER JOINT STOCK
4 Se Ka man 1 (Laos) HPP 290 COMPANY
5 Quang Ninh II#2 TPP 300 EVN
6 Thai Binh II#2 TPP 600 PVN
7 Mong Duong II #1,2 TPP 51200 AES/BOT
8 Luc Nam #1 TPP 50 IPP
9 Duyen Hai IIII#1 TPP 600 EVN
10 Long Phu I#1 TPP 600 PVN
11 Duyen Hai I #2 TPP 600 EVN
12 O Mon III combined gas turbine 750 EVN
CONG THANH ELECTRICITY
13 Cong Thanh #1,2 TPP 600 JOINSTOCK COMPANY
1 Lai Chau #1 HPP 400 EVN
2 Trung Son #1,2 HPP 260 EVN
3 Song Bung 4 HPP 156 EVN
4 Song Bung 2 HPP 0 EVN
5 Dak My 2 HPP 98 IPP
6 Dong Nai 6A HPP 106 DUC LONG GIA LAI COMPANY
7 Hoi Xuan HPP 102 IPP
8 Se Kaman 4 (Laos) HPP 64 BOT
9 Ha Se San 2 (Campodia 50%) HPP 200 EVN-BOT
10 Mong Duong I #1 TPP 500 EVN
11 Thai Binh I#1 TPP 300 EVN
12 Hai Duong #1 TPP 600 JAK RESOURSE - MALAYSIA/BOT
13 An Khanh II#1 TPP 150 STOCK COMPANY
14 Long Phu I#2TPP 600 PVN
15 Vinh Tan I#1,2 TPP 1200 CSG/BOT
16 Duyen Hai III#2 TPP 600 EVN
17 O Mon IV combined gas turbine 750 EVN
18 O Mon II combined gas turbine 750 BOT
1 Lai Chau #2,3 HPP 800 EVN
3-4
2 Se Kong 3A,3B HPP 105+100 Song Da Corp.
THANG LONG POWER PLANT JOINT
3 Thang Long #1 TPP 300 STOCK COMPANY
4 Mong Duong I#2 TPP 500 EVN
5 Thai Binh I#2 TPP 300 EVN
6 Hai Duong #2 TPP 600 JAK RESOURSE - MALAYSIA/BOT
7 Nghi Son II#1,2 TPP 1200 BOT
8 An Khanh II#2 TPP 150 STOCK COMPANY
9 Van Phong I#1 TPP 660 SUMITOMO - HANOICO/BOT
10 Vinh Tan VI #1 TPP 600 EVN
11 Vinh Tan III #1 TPP 660 VTEC 3/BOT
12 Song Hau I#1 TPP 600 PVN
1 Bao Lam HPP 120 Song Da Corp.
2 Nam Sum 1 ( Laos) HPP 90 SAIGON INVEST
3 Se Kong (Laos) HPP 192 EVN-BOT
4 Na Duong II#1,2 TPP 100 TKV
5 Luc Nam #2 TPP 50 IPP
6 Vung Ang II#1 TPP 600 VAPCO/BOT
7 Quang Trach I #1 TPP 600 PVN
8 Nam Dinh I #1 TPP 600 TAIKWANG - KOREA/BOT
9 Van Phong I#2 TPP 660 SUMITOMO - HANOICO/BOT
10 Song Hau I#2 TPP 600 PVN
11 Son My #1,2,3 combined gas turbines 1170 (IP-SOJITZ-PACIFIC)/BOT
12 Duyen Hai II#1 TPP 600 JANAKUASA/BOT
13 Vinh Tan III#2 TPP 660 VTEC 3/BOT
14 Vinh Tan VI #2 TPP 600 EVN
15 Import from China 1000 Depend of import negotiation
Wind Power + Renewable Energy 200 IPP
1 Bac Ai #1 HPP pump storage 300 EVN
2 Dong Phu Yen #1 HPP pump storage 300 XUAN THIEN COMPANY
3 Nam Sum 3 (Laos) HPP 196 SAIGON INVEST
4 Vinh Son II HPP 80 IPP
5 Vung Ang II#2 TPP 600 VAPCO/BOT
6 Quang Trach I #2 TPP 600 PVN
7 Nam Dinh I #2 TPP 600 TAIKWANG - KOREA/BOT
3-5
THANG LONG POWER PLANT JOINT
8 Thang Long #2 TPP 300 STOCK COMPANY
9 Quang Tri #1 TPP 600 IPP/BOT
10 Duyen Hai II#2 TPP 600 JANAKUASA/BOT
11 Duyen Hai III#3 (MR) TPP 600 EVN
12 Kien Luong 1#1 TPP 600 TAN TAO
13 Son my 1#14,5 combined gas turbines 780 (IP-SOJITZ-PACIFIC)/BOT
Hiep Phuoc TPP stops working -375
14 Import from China 1000 Depend of import negotiation
Wind Power + Renewable Energy 230 IPP
1 Dong Phu Yen #2,3 HPP pump storage 600 XUAN THIEN COMPANY
2 Bac Ai #2,3 HPP pump storage 600 EVN
3 Nam Mo I (Nam Kan-Laos) HPP 72 EVNI
4 Quang Tri #2 HPP 600 IPP/BOT
5 M.Trung #1 (Quang Tri or Quang Ngai) TBKHH 450
6 Ninh Thuan I# 1 Nuclear Power Plant (NPP) 1000 EVN
7 Ninh Thuan II# 1 Nuclear Power Plant (NPP) 1000 EVN
8 Vinh Tan III#3 TPP 660 VTEC 3/BOT
9 Kien Luong I#2 TPP 600 TAN TAO
Thu Duc TPP stops working -272
Source: Prepared by Study Group based on the PDP7 No.1208/QD-TTg (Jul. 21, 2011)
Table 3-2 Construction plans published in PDP7 (2011-2020)
Installed
Capacity
No. Plant name (MW) Investor
1 Dong Phu Yen #4 pump storage HPP 300 XUAN THIEN COMPANY
2 Bac Ai #4 pump storage HPP 300 EVN
3 Ha Se San 1 (Cambodia) HPP 90 EVNI
4 Sekong (Cambodia) HPP 150 EVNI
5 Hai Phong III#1 TPP 600 TKV
6 Van Phong II#1 TPP 660
7 Son My II#1,2 combined gas turbines 780
8 Ninh Thuan I#2 nuclear PP 1000
9 Ninh Thuan II#2 nuclear PP 1000
3-6
10 Imported from China 1000
Ninh Binh I TPP stops working -100
Uong Bi I TPP stops working -105
Can Tho TPP stops working -150
1 Nam Theun I (Laos) HPP 400 EVN-BOT
3 Cam Pha III#1,2 TPP 270 TKV
4 Quynh Lap I #1 600 TKV
5 Long Phu II#1 TPP 600 SONG DA CORP
6 Van Phong II#2 TPP 660
7 Son My II#3,4,5 combined gas turbines 1170
8 No. III#1 nuclear PP 1000 EVN
1 Ha Se San 3 (Cambodia) HPP 180 BOT
2 Quang Trach II#1 TPP 600
3 Quynh Lap I #2 600 TKV
Central #2 (Quang Tri or Quang Ngai) combined
4 gas turbine 450
5 Kien Luong II#1 TPP 600
6 Long Phu II#2 TPP 600 SONG DA CORP
7 No. III#2 nuclear PP 1000 EVN
1 Northen II#1 pump storage HPP 300
2 Don Duong #1,2 pump storage HPP 600 EVN
3 Quang Trach II#2 TPP 600
4 Phu Tho #1 TPP 300
Central #3 (Quang Tri or Quang Ngai) combined
5 gas turbine 450
6 Long An #1,2 TPP 1200
7 Kien Luong II#2 TPP 600
2 Don Duong #3,4 pump storage HPP 600 EVN
3-7
4 Nam Dinh II#1 TPP 600 BOT
5 Phu Tho #2 TPP 300
6 Long Phu III#1 TPP 1000 PVN
7 Southern #1,2 combined gas turbines 1500
2 Vung Ang III#1 TPP 600 BOT
3 Nam Dinh II#2 TPP 600 BOT
4 Bac Giang #1 TPP 300
5 Binh Dinh I#1 coal TPP 600
6 Long Phu III#2 TPP 1000 PVN
7 No. IV#1 nuclear PP 1000
8 HPP imported from Laos 550
1 Vung Ang III#2,3 TPP 1200 BOT
2 Bac Giang #2 TPP 300
3 Kien Luong III #1 TPP 1000
4 Song Hau II #1 TPP 1000
5 Binh Dinh I#2 coal TPP 600
6 NuclearPP No. IV#2 1000
7 HPP imported from Laos 550
1 Ninh Son pump storage HPP #1 300
2 Vung Ang III #4 TPP 600 BOT
3 Quynh Lap II#1,2 TPP 1200
4 Song Hau II #2 TPP 1000
5 Kien Luong III #2 TPP 1000
6 Bac Lieu coal TPP #1,2 1200
7 Central nuclearPP I #1 1350
1 Ninh Son pump storage HPP #2,3 600
2 Yen Hung #1,2 TPP 1200
3 Uong Bi III #1,2 TPP 1200
4 Song Hau III #1,2 2000
5 Binh Dinh coal TPP #1,2 2000
3-8
6 An Giang coal TPP #1,2 2000
1 Ninh Son pump storage HPP #4 300
2 Northen coal TPP 1000MW #1,2 2000
3 Southen coal TPP 1000MW#1,2,3,4,5 5000
4 Central nuclearPP I#2 1350
Source: Prepared by the Study Group based on PDP7 No.1208/QD-TTg (Jul. 21, 2011)
As of now, the rate of demand increase for the future is expected to be about 10%; thus, the stable power supply
was expected if the plants could start operation according to the schedule set in PDP7.
3) Discussion of issues of PDP7

Ever since the promulgation of PDP7, the development of many power plants, mainly coal-fired thermal power
projects were launched including IPP implemented by EVN and other government-run companies, as well as BOT
cases in which foreign investors participated. However, many of the 600MW large-scale coal-fired thermal power
plants failed to start operation according to the plan, due to issues related to the funding ability of electric power
providers, and insufficient ability of EPC contractors such as those from China to manage construction.
Specifically, for Nghi Son 2 coal-fired thermal power plant (600MW×2 units) in Thanh Hoa Province in the north
central region of the country, for which the investors were selected through an international competitive bidding,
PPA has not been concluded even after two years after the bidding due to difficulty in negotiation with the
Vietnamese government. With regard to Long Phu 1 coal-fired thermal power plant in Soc Trang Province in the
south (currently under development by PVN), the start of its operation is likely to be delayed significantly from
the original planned date, due to difficulties and issues in negotiation with the EPC contractor that was contracted
in December 2013, such as the inability to pay guarantee deposits. For many of the other large-scale coal-fired
thermal power plants, the development and construction have not progressed according to the plan.
Furthermore, China constructed rigs for oil drilling in May 2014 in Vietnam’s territorial waters without prior
consent, triggering a riot. It in turn caused issues that affected the China-Vietnam relationship, where Chinese
investors and EPC contractors pulled out en masse. The construction of many of the coal-fired power plants that
were ordered to Chinese companies was ceased temporarily, saddling Vietnam with huge risks associated with
power source development in the future.
Aside from coal-fired thermal power, gas-fired thermal power has suffered similar issues. Chevron (USA), the
operator of the Block B gas field which was expected to supply gas to O Mon power generation complex in the
south, stated its withdrawal due to issues in negotiating price with Petro Vietnam and those associated with a
conversion guarantee from the Vietnamese government, undermining the prospect for the development of a power
source equivalent to 3,000MW.
3-9
Given these situations, power supply in 2017 and after is expected to be tight especially in the south, and the
Vietnamese government issued a prime minister decision No.2414 (Nov. 2013) and designated Vinh Tan 4
coal-fired themal power palnt (developed by EVNGenco3, 1200MW) in Bình Thuan Province, Long Phu 1
coal-fired thermal power plant (developed by PVN, 1200MW) in Soc Trang Province and Duyen Hai 3 extension
coal-fired thermal power plant (developed by EVNGenco1, 660MW) in Tra Vinh Province giving them the utmost
priority, and urged early development of these power sources through measures such as allowing the selection of
EPC contractors without bidding.
4) Scope and beneficiaries of the Project

Since there is a concern that the development of projects may be delayed as described above, Bac Lieu coal-fed
thermal power plant project has drawn attention since around the end of 2013 as a project whose development
needs to be accelerated so that its operation can start sooner than 2028 which was the time planned for its
commencement of operation at the promulgation of PDP7.
This Project is Phase 1 (1,200MW) of the power generation complex planned for the Dong Hai area, Bac Lieu
Province in southern Vietnam with the total output of 3,600MW, and its scope includes the construction of
coal-fired thermal power generation plants, port facilities for coal transportation and water intake and discharge
facilities. Once completed, it is expected to supply electricity not only to the customers in Ho Chi Minh, a city of
commerce, but also to the customers in southern Vietnam in and around Bac Lieu Province, thereby improving
energy security.
coal TPP; thus the job creation in southern Vietnam is also anticipated.
5) Effects and impacts from the Project implementation

The Project is planned as coal-fired thermal power project that utilizes imported coal, for which a proposal can be
made to adopt ultrasuper critical technology as the first project of the kind in Vietnam by utilizing eco-friendly
coal-fired thermal power technology that Japan takes pride in. By adopting the idea, it can contribute to the
solving of the issue of electric power shortage and help reduce coal use more than the supercritical power
generation can and thus environmental load.
Thanks to the effect of the projects with utmost priority above, the first supercritical coal-fired thermal power
generation plants in Vietnam are planned to start operation around 2018. Thus, this Project is planned for around
2023, which will allow the country to experience the operation and maintenance of supercritical thermal power
plants for five years and give its participants enough time to systematically train the staff of the operating entity.
Also, the adoption of the ultrasuper critical technology for this Project is expected to encourage the participation
of private funds and other donors and promote the full-fledged dissemination of ultrasuper critical technology in
Vietnam.
3-10
6) Comparison of alternatives
In the past, the power source development in Vietnam had relied heavily on hydroelectric power. However, the
country has experienced electric power shortage caused by drought in April and May every year; therefore
currently, it is working to expand thermal power generation plants.
Thermal power generation mainly refers to either gas-fired thermal power or coal-fired thermal power. With
regard to gas-fired thermal power, the development of domestic gas fields requires negotiation with business
entities responsible for the development, a process that could take a long time. LNG-fired thermal power plants
are planned; however, there is a tendency to be prudent about importing LNG into Vietnam where electric tariff is
low, making LNG-fired thermal power to be a matter to be examined from the mid- to long-term point of view.
Regarding coal-fired thermal power, there are many subcritical coal-fired thermal power plants in the north, which
use coal mined in Vietnam. However, the mining method has been switched to underground coal mining since coal
was depleted in the areas where open-pit mining was conducted, and as a result the coal mining cost has increased
to the point where the price of domestic coal is high in comparison to imported coal of equivalent quality. In this
context, coal-fired thermal power in the north with the use of domestic coal has a limitation. Also, due to reasons
given above, Vietnam is expected to become a coal importing country around 2016. Therefore, in order to
facilitate power source development to meet rapidly increasing power demand, it seems most desirable to develop
coal-fired thermal power plants that use imported coal.
PDP7 plans many coal-fired thermal power plants that use imported coal in the south, which have not been
developed according to their schedule. However, the operating entity for the Project is expected to be EVN that
takes ultimate responsibility for power supply and demand. Therefore, it seems possible to adopt ultrasuper critical
technology and use funds from Japan, thereby working towards the commencement of operation according to
schedule.
(2) For Sophisticated and Streamlined Energy Use

1) Technology adopted for coal-fired thermal power generation in Vietnam
Vietnam has mainly exported high-quality anthracite coal mined in the Quang Ninh area in the northeast region of
the country to Japan and South Korea while generating electricity using low-quality anthracite coal obtained in the
coal preparation process through subcritical coal-fired power generation, or using subbituminous coal that is
produced in the coal field in the Red River delta through subcritical coal-fired thermal power generation.
The range of boiler output has been on the increase from 110MW, 300MW to 600MW per unit, with the capacity
of 600MW being the majority today. The power plants of this capacity include subcritical coal-fired thermal power
plants such as Vung Ang 1 coal-fired thermal power plant in Ha Tĩnh Province in the north central region of the
nation and Thai Binh 2 coal-fired thermal power plant in Thai Bình Province in the northern region.
However, the efficiency of these coal-fired thermal power plants is low at around 30%, and their operation will be
3-11
challenged since the use of domestic coal will be difficult in the future and from the standpoint of reduction of
environmental load. In this context, more plans are drawn in recent years for supercritical coal-fired thermal power
generation plants that use imported coal, especially for the central to southern regions on the country. Vinh Tan 4
coal-fired themal power palnt in Bình Thuan Province in the south central region of the country and Duyen Hai 3
extension coal-fired thermal power plant in Tra Vinh Province in the southern region are being developed as
supercritical coal-fired thermal power plants with two units with 600MW each. Vietnam’s first supercritical
coal-fired thermal power plants are planned to start operation around 2017-2018, which should allow the country
an ample opportunity to experience the difference between subcritical and supercritical thermal power generation
in terms of technology and operation.
2) Technology adopted for the Project

This project was also planned as a coal-fired thermal power generation plant that uses imported coal at the time of
the PDP7 promulgation; however discussion as to choosing between supercritical and ultrasuper critical
technology had not gone far.
These days however, most of the supercritical coal-fired thermal power plants are planned to start operation
around 2020, and the Vietnamese government is deliberating the adoption of ultrasuper critical coal-fired thermal
power as projects for 2020 or later. At the interviews conducted during the field studies, GDE was observed to be
examining ultrasuper critical thermal power seriously, and the comparative investigation of supercritical and
ultrasuper critical that is submitted in this report is anxiously awaited. EVN also indicated its willingness to be the
one to implement Vietnam’s first ultrasuper critical thermal power project. Once a formal approval was given as
an investor in the revised PDP7, it wishes to prepare investment reports (detailed FS), consider prices and timing
for implementation, and decide on the adoption of ultrasuper critical technology. Thanks to the studies backed by
the Japanese government regarding the adoption of ultrasuper critical technology in Vietnam, the level of
recognition and understanding of the necessity for the ultrasuper critical technology has increased in the country.
3) For sophisticated and streamlined energy use
Assuming that Phase 1 is realized by adopting ultrasuper critical technology with the use of funds from Japan,
some of the direct benefits this project might bring include highly-efficient and stable power supply that will solve
the issue of electric power shortage especially in the south of the country and potential for the rapid acceleration of
adoption of ultrasuper critical technology in IPP/BOT projects planned for the following phases or in other areas.
It could also enhance the level and knowhow of the Vietnamese engineers regarding the operation of ultrasuper
critical coal-fired thermal power generation plants.
Indirect benefits might be national benefits which are obtained by controlling the consumption of domestic coal in
subcritical thermal power that currently uses domestic coal for power generation and thus ensuring coal export,
which is encouraged by promoting high-efficiency thermal power with the use of imported coal. Also diversifying
of coal procurement sources, Vietnam might be able to step out of excessive reliance on unstable hydroelectric
power, which should improve energy security for the whole country.
3-12
(3) Examinations Needed for the Determination of the Project Contents
1) Power demand estimation
To meet the increasing demand for electricity triggered by rapid economic growth, the Vietnamese government
promulgated PDP7 in 2011. In PDP7, which is currently being revised, offered estimated power demand up to
2030. The power demand to 2030 estimated as this point is shown in Table 3-3.
As the table indicates, there is enough power if looking at the entire Vietnam; however in southern Vietnam where
the Project is planned to be constructed, chronic power shortage is expected until 2030 and transmission from the
northern and central regions of the country is required. As Vietnam is elongated from north to south, transmission
losses are great, and it is desirable to maintain balance between power supply and demand in each region. Based
on the lower output from hydroelectric power plants during dry seasons, delay in the development of many power
plants, forced outages, etc. in the southern region, the steady development of the Project is anxiously awaited.
Table 3-3 Energy balance (Unit: GWh)
No. Year 2015 2020 2025 2030
Northern region
A Power generation 89,325 150,081 189,212 240,504
B Load Demand 62,527 106,471 162,607 232,733
C Redundancy(+) /
Shortage(-) (GWh) 26,799 43,609 26,605 7,771
Central region
B Load Demand 15,310 25,718 39,606 58,685
C Redundancy(+) /
Shortage(-) (GWh) 5,836 6,830 37,453 46,012
Southern region
B Load Demand 80,634 130,225 191,324 268,867
3-13
No. Year 2015 2020 2025 2030
C Redundancy(+) /
Shortage(-) (GWh) -9,592 -13,024 -5,510 -8
Whole Country
B Load Demand 158,471 262,414 393,537 560,285
C Redundancy(+) /
Shortage(-) (GWh) 23,043 37,415 58,548 53,775
Balance
A Load Demand 158,471 262,414 393,537 560,285
B Redundancy(+) / 53,775
Shortage(-) (GWh) 23,043 37,415 58,548
Storage ratio (%) 14.5% 14.3% 14.9% 9.6%

Source: Presented by study group based on the data of Vietnamese consultants
2) Understanding and analyzing issues for examining and determining the Project contents
a) Status of planned power plant site

a-1) Geography and topography
Bac Lieu Province where the planned power plant site is located in the Mekong Delta in the southern Vietnam
region. Its land is flat for the most part and the average elevation is 0.8m above sea level. Some areas inland have
lower altitude than the coastal area and there are two distinct characteristics in the inland area as follows:
－With the altitude of 0.4m - 0.8m on average, the southern side of the National Highway 1A have a higher
elevation than the northern side. There are many sand hills that are not connected and the land is sloped from
the sea side to the inland side.
－ The altitude on the northern side of the National highway 1A is 0.2m - 0.3m on average. The mean gradient for
the entire province is 1 - 1.5cm/ km.
The planned power plant site is comprised of mangrove forests that run along the coast and spread inland in some
areas, aqua-culture ponds for shrimp and salt fields. There are many, wide water ways that run from north to south
in the province, and the water from the rivers and water ways flows into estuaries such as Ganh Hao and Cai
Cung.
a-2) Geology
During the preliminary study conducted for the area in 2010, a boring survey was done at five spots as shown in
3-14
the table below, which indicates the drilled length and boring spots. The spots are given as locations for planned
facilities.
Table 3-4 Boring locations

NO. Length Spot
drilled (m)
BL-1 50.0 Coal storage yard
BL-2 80.0 Switchyard
BL-3 80.0 Power plant premises
BL-4 50.0 Water intake
BL-5 40.0 Ash yard
Total 300.0
Based on the boring survey data, there are roughly four types of geological layers in the area. Each of the four
layers is summarized below:
The first layer is back-filled soil and consists of soft clay mixed with grass roots. This layer has the thickness of
0.7 - 1.7m and is rather thin. The N value is 0 to 1 and the layer has very small strength.
The second layer is comprised of deposited materials from the sea and marsh, and has brown or black clay, humus,
peat, etc. This layer has the thickness of 24-30m. The N value is small at 5 or less to the depth of 20- 30m and is
larger at 16-22 near the third layer.
The third layer is sediment from the sea, and has brownish yellow or brown medium to hard clay, fine sand, etc.
The thickness of this layer is about 12-24m. The N value varies from 19 to 49 but mostly 25- 30.
The fourth layer is also sediment from the sea and made of greenish brown or yellow, hard and fine sand, etc. The
thickness of this layer is unclear. The N value varies from 19 to 37 but mostly 30 or more.
The ground water level is very high at 0.3 - 1.2m.
a-3) Ambient temperature
Table 3-5 Ambient Temperature（℃）

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Year
Ave 25.3 26.0 27.3 28.5 28.3 27.5 27.1 26.9 26.7 26.6 26.5 25.5 26.8
Max 34.3 33.3 34.6 36.7 36.5 35.7 33.6 33.7 34.2 33.3 32.6 32.5 36.7
Min 17.1 18.3 18.8 21.4 22.0 21.7 21.4 21.4 21.8 21.7 19.0 16.4 16.4
Source：Presented by study group based on the data of Vietnamese consultants
a-4) Ambient pressure

Table 3-6 Ambient pressure (mmbar)
3-15
Ave 1012 1011 1010 1009 1008 1008 1008 1008 1009 1038 1010 1011 1012
Max 1018 1017 1020 1014 1013 1013 1014 1014 1014 1015 1016 1017 1020
Min 1006 1004 1004 974 1003 971 1003 1003 972 1004 973 1005 971
a-5) Relative humidity

Table 3-7 Relative humidity (%)
Ave 81 80 79 79 84 86 87 88 89 89 87 84 84
Min 32 36 44 44 47 50 55 48 50 52 46 46 32
a-6) Sea water temperature

Since there is no data of sea water temperature around planned area of power plant, sea water temperature data
(Vung Tau, 1979-2013) relatively near the planned are is used.
Table 3-8 Sea water temperature (℃)

Ave 26.4 26.5 27.7 29.3 30.0 29.4 28.6 28.4 28.5 28.8 28.3 27.2 28.3
High 29.5 30.0 31.5 32.1 32.5 32.2 31.8 31.4 31.9 31.6 31.0 30.3 32.5
Low 23.8 24.0 24.1 25.2 26.7 25.4 25.6 25.0 24.0 24.7 24.0 24.8 23.8
a-7) Tide level and waves
Table 3-9 Average Tidal level（㎝）
P (%) 5 10 20 25 50 70 75 90 95
Htb 28 20 12 9 1 -4 -5 -8 -9
Table 3-10 Maximum Tidal Level（㎝）
P (%) 0.5 1 2 3 4 5 10 20 50
Hmax 246 239 232 227 225 222 213 204 189

3-16
Table 3-11 Minimum Tidal Level（㎝）
P (%) 50 70 75 80 90 95 97 98 99
Hmax -229 -235 -237 -238 -243 -245 -247 -249 -250
Since there is no wave height data for the sea near the planned power plant side in Bac Lieu, the data from
the Con Dao station which is 100km to the east from the planned site is used.
Table 3-12 Maximum Wave (Con Dao station)
P (%) 0.5 1 2 3 4 5 10 20 50
h.max.p (m) 4.13 3.62 3.13 2.83 2.66 2.49 2.03 1.64 1.24
a-8) Rainfall amount
Table 3-13 Rainfall amount (Bac Lieu Station 1980-2013)

Rainfall
4.8 3.7 15.5 57.6 203.3 281.2 273.3 277.5 308.2 306.4 173.3 42.6 1947
amount
No. of
2 1 2 5 17 21 22 22 23 22 14 6 157
date
a-9) Wind direction and speed
Table 3-14 Wind direction and speed (Bac Lieu Station 1980-2013)
Wind direction Calm N NE E SE S SW W NW
Frequency (%) 22.0 5.0 10.6 20.2 6.7 6.9 15.2 8.6 4.9
Average wind speed
－ 2.3 2.9 3.1 2.8 2.6 2.4 2.7 2.7
(m/s)
Table 3-15 wind direction and speed during the dry season (Bac Lieu Station 1980-2013)
Frequency (%) 18.0 5.8 16.1 40.1 11.5 4.4 1.2 0.5 2.3
Average wind speed
－ 2.3 3.2 3.2 2.9 2.6 1.9 1.6 2.2
(m/s)
3-17
Table 3-16 wind direction and speed during the rainy season(Bac Lieu Station 1980-2013)
Frequency (%) 24.8 4.3 6.7 6.1 3.3 8.6 25.0 14.3 6.8
Average wind speed
－ 2.2 2.5 2.6 2.4 2.6 2.4 2.8 2.8
(m/s)
b) Procurement of water for plant use

b-1) Cooling water
It is planned to obtain cooling water for the plants from the sea. However, since the sea near the planned site is in
the Mekong Delta region and has shoals, water must be taken from the area 2-3 km away from the coast during the
lowest tide. Also, in order to prevent the intake of thermal effluent, levees or similar facility must be built to
separate the area of the sea for water intake and for discharge.
Table 3-17 Estimated Cooling Water Requirement for Power Plant

600MW-class 600MW-class 1,000MW-class
SC plant USC plant USC plant
91,769 m3/h 88,900 m3/h 134,334 m3/h
Condenser cooling water
×2 units ×2 units ×1 unit
Water for desulfurization
8,052 m3/h 7,644 m3/h 11,542 m3/h
equipment (sea water
×2 units ×2 units ×1 unit
desulfurization)
Required cooling water 199,642 m3/h 193,088 m3/h 145,876 m3/h
b-2) Water for plant use

b-2-1) Raw water procurement plan
There are several ways to procure raw water to be used in the power plants, including procuring water from a
tributary of the Hau River via the Quan Lo-Phung Hiep water way, that from local irrigation canals, using sea
water with the utilization of seawater desalination units, and procuring water from the subterranean water veins.
For this Project, the procurement plan is made mainly based on the idea to obtain water via the Quan Lo-Phung
Hiep water way, which should offer a relatively stable water supply, supplemented by the introduction of seawater
desalination units.
3-18
Table 3-18 Raw Water Procurement Option for Power Plant
Water procurement plan for plant use Outline and issues
Procurement via the Quan Lo-Phung Water is obtained from a tributary of the Hau River via the Quan
Hiep water way Lo-Phung Hiep water way. The necessary amount of water might not be
obtained during dry seasons after the start of operation; thus additional
measures such as the use of seawater desalination units might be needed.
Procurement from local irrigation Water is obtained from irrigation canals used in the area. The water
canals quality is not stable since saline concentration is controlled to supply
water to shrimp farms and effluent is discharged.
Using sea water with the utilization Water from the nearby sea is used with the utilization of seawater
of seawater desalination units desalination units. This method could raise power generation costs.
Procurement of water from the Water is obtained from the depth of 80m-100m. However, the use of
subterranean water veins groundwater is limited to domestic use, and cannot be used for the plant.
b-2-2) Outline of the Quan Lo-Phung Hiep water way

The Quan Lo-Phung Hiep water way was created to use the river water from the Hau River for the irrigation for
aqua-farming, agriculture, etc. in the area.
Table 3-19 Outline of the Quan Lo-Phung Hiep Channel
Length Actual river Depth Sedimentation

River grade
(km) width (m) (m) rate (m/year)
III 105 20.40 1.7-2.2 0.20
3-19
Figure 3-2 Location Map from Hau river to planned area of power plant
To use river water from the water way for the Project, water is taken from the Vinh My canal which branches out
from the water way, pumped up and sent to the planned power plant site via pipeline.
The relative location of the Vinh My canal to the planned power plant site, and the water quality are shown below:
3-20
Figure 3-3 Location Map from Quan Lo-Phung Hiep channel to planned area of power plant
Table 3-20 Surface water quality at the Vinh My canal

No. Item Unit Value Measurement method
1 pH - 7.28 TCVN 6492 - 1999
2 Conductivity ms/cm 0.36 LF 330/SET Machine
3 Suspended solids mg/L 16 TCVN 6053 - 1996
4 Dissolved matter mg/L 259 TCVN 6053 - 1996
5 total alkali (CaCO3) mmol/L 0.70 SMEWW 2320 B
6 Hardness (CaCO3) mmol/L 0.57 SMEWW 2340 C
7 Carbonate hardness mmol/L 0.40 SMEWW 2340 C
3-21
No. Item Unit Value Measurement method
8 Ba2+ mg/L 0.98 SMEWW 308
9 Ca2+ mg/L 9.22 SMEWW 3500 Ca - D
10 Mg2+ mg/L 8.27 SMEWW 3500 Mg - E
11 Na+ mg/L 55.00 TCVN 6196 - 3: 2000
12 K+ mg/L 5.35 TCVN 6196 - 3: 2000
13 Fe2+ mg/L 0.14 TCVN 6177 - 1996
14 Fe3+ mg/L 1.95 TCVN 6177 - 1996
15 NH4+ mg/L 0.37 TCVN 5988 - 1995
16 Al3+ mg/L 0.26 TCVN 4579 - 1988
17 COD mg/L 24 TCVN 6491 - 1999
18 BOD mg/L 2.2 TCVN 6001 - 1995
19 Total silica mg/L 16.80 SMEWW 425 - C
20 Activated silica mg/L 14.57 SMEWW 425 - C
21 HCO3- mg/L 85.43 SMEWW 2320 B
22 Cl- mg/L 81.54 SMEWW 4500 - Cl - B
23 SO42- mg/L 12.01 TCVN 6200 - 1996
24 NO3- mg/L 1.73 TCVN 6180 - 1996
25 NO2- mg/L 0.75 TCVN 6178 - 1996
26 PO43- mg/L 0.26 SMEWW 4500 - P - C
27 Sulfur mg/L 0.01 SMEWW 427
28 CO2 free mg/L 6.60 TCXD 81: 1981

Regarding the introduction of seawater desalination units, water intake from nearby sea area is assumed. The sea
water quality is as given follows:
Table 3-21 Sea water quality (for the use of seawater desalination units)
Item Unit Value Analysis method
1 pH - 7.47 TCVN 6492 - 1999
2 EC ms/cm 22.80 Machine: LF 330/SET
3 Suspended solids mg/L 5 TCVN 6053 - 1996
4 Dissolved matter mg/L 15822 TCVN 6053 - 1996
3-22
Item Unit Value Analysis method
5 Total alkali (CaCO3) mmol/L 1.15 SMEWW 2320 B
6 Hardness (CaCO3) mmol/L 35.40 SMEWW 2340 C
7 Carbonate hardness(CaCO3) mmol/L 0.84 SMEWW 2340 C
8 Ba2+ mg/L 1.21 SMEWW 308
9 Ca2+ mg/L 160.32 SMEWW 3500 Ca - D
10 Mg2+ mg/L 763.65 SMEWW 3500 Mg - E
11 Na+ mg/L 4526.32 TCVN 6196 - 3: 2000
12 K+ mg/L 189.47 TCVN 6196 - 3: 2000
13 Fe2+ mg/L KPH TCVN 6177 - 1996
14 Fe3+ mg/L 0.12 TCVN 6177 - 1996
15 NH4+ mg/L KPH TCVN 5988 - 1995
16 Al3+ mg/L KPH TCVN 4579 - 1988
17 COD mg/L 425 TCVN 6491 - 1999
18 BOD mg/L 13.6 TCVN 6001 - 1995
19 Total silica mg/L 7.02 SMEWW 425 - C
20 Activated silica mg/L 5.29 SMEWW 425 - C
21 HCO3- mg/L 140.35 SMEWW 2320 B
22 Cl- mg/L 8508.00 SMEWW 4500 - Cl - B
23 SO42- mg/L 1479.32 TCVN 6200 - 1996
24 NO3- mg/L 0.55 TCVN 6180 - 1996
25 NO2- mg/L 0.58 TCVN 6178 - 1996
26 PO43- mg/L 0.12 SMEWW 4500 - P - C
27 Sulfur mg/L KPH SMEWW 427
28 CO2 free mg/L 7.04 TCXD 81: 1981

c) Status and developmental plans for the transmission systems

c-1) Current grid status in Vietnam
The major power grids in Vietnam include 500kV transmission lines that run the length of about 6,737km from
north to south and play a very important role in ensuring reliability of power transport. Today, the transmission
lines stretches from Son La in the northern region to Phu Lam and O Mon in the southern region via Quang Ninh,
Hoa Binh and Da Nang, and play a critical role as an integrated infrastructure for power transport in Vietnam.
3-23
Figure 3-4 Main Power Transmission Grid in Vietnam (2014)
500kV transmission line total length 6,737 km
220kV transmission line total length

12,251 km
No. of 500kV substations

21 地点
No. of 220kV substations

77 地点
500kV transformer total capacity

20,250 MVA

28,851 MVA

3,135 MVA
Shunt capacity/SVC: total capacity

4,285 MVar
Series reactor total capacity

3,750 MVar
With regard to power flow as of 2013, power flow from the northern and central regions to the southern region is
significant since the construction of new power plants in the southern region has not progressed as planned. Also,
central Vietnam has many hydroelectric power plants and during rainy seasons when those hydroelectric plants
operate at a high rate, the power flow changes and electricity is sent from Vietnam’s central region to northern and
southern regions.
The southern region receives power from the northern and central regions throughout the year, and a high load is
imposed at all times on the 500kV-transmission lines in the Pleiku - Di Linh - Tan Dinh section and Dak Nong -
Phu Lam section. During the rainy seasons when hydroelectric plants operate at a higher rate, the amount of
electricity sent out from Vietnam’s central region goes up, increasing the load on the 500kV-transmission lines in
the sections between Nho Quan and Ha Tinh and between Ha Tinh and Da Nang.
The 220kV and 110kV transmission systems supply power within the regions, and have two-circuit transmission
lines or circular transmission networks to continue stable operation. However, many of the existing facilities have
been in service for a long time since the start of operation and do not have enough margins in capacity considering
the current power demand. If a fault occurs at a power plant, some facilities might experience overload.
3-24
Table 3-22 Estimated energy balance in Vietnam for 2015
Generated output Power demand Reserve capability (+)
（GWh）（GWh） /Deficiency (-)
Vietnam northern region 89,325 62,527 +26,799
Vietnam central region 21,147 15,310 +5,836
Vietnam southern region 71,042 80,634 -9,592
Entire Vietnam 181,514 158,471 23,043（14.5%）
c-2) Existing power sources and power supply status in the southern region of Vietnam
In the southern region of Vietnam, the power supply capacity is not sufficient to meet the demand, and even
though the construction of many new power plants has been planned, the plans have not been carried out
according to schedule due to issues including those with China. The region is still in need of power transmitted
from other regions.
Figure 3-5 500kV/220kV Power Grid around southern area of Vietnam (2014)
3-25
The power supply and demand in the southern region of Vietnam for 2015 are estimated as follows:
Table 3-23 Estimated power supply and demand in the southern region for 2015
Power demand Power supply capacity Reserve
Demand site Demand scale Supply site Supply scale capability (+)
/Deficiency (-)
Northern Hau Long An 663 MW Duyen Hai 600 MW
River area Dong Thap 392 MW
Tien Giang 376 MW
-1,289 MW
Ben Tre 192 MW
（-68.24 %）
Vinh Long 137 MW
Tra Vinh 129 MW
Subtotal 1,889 MW Subtotal 600 MW
Southern Hau An Giang 372 MW Tra Noc 176 MW
River area Kien Giang 324 MW Ca Mau 1,500 MW
Ca Mau 189 MW O Mon Ⅰ 660 MW
Bac Lieu 136 MW +700 MW
Hau Giang 96 MW （+42.79 %）
Can Tho 341 MW
Soc Trang 178 MW
Subtotal 1,636 MW Subtotal 2,336 MW
-589 MW
Southern region 3,525 MW 2,936 MW
（-16.71 %）
The transmission network in the southern region is comprised of 500kV transmission lines as well as 220kV,
110kV and 22kV transmission systems.
Figure 3-6 Power Distribution system around southern area of Vietnam (2014)
3-26
There are six provinces in the northern Hau River area: Long An Province, Dong Thap Province, Tien Giang
Province, Ben Tre Province, Vinh Long Province and Tra Vinh Province. Those provinces have no large-scale
power plants (Duyen Hai 1 power plant with 2×600MW is planned to start operation in 2015), and their demand is
met with power generated at Phu My and Nhon Trach power plants and transmitted via the 220kV transmission
lines connecting Phu My, Nhon Trach, My Tho and Cai Lay, power sent from Phu Lam 500/220kV substation via
220kV transmission lines connecting Phu My, Long An and Cai Lay, and power generated at O Mon power plant
and sent via 220kV transmission lines connecting O Mon and Vinh Long and those connecting O Mon, Thot Not
and Cao Lanh.
Table 3-24 Existing 220/110kV Substation around southern area of Vietnam (North side of Hau River)
Substation name Capacity
Cai Lay 220/110kV SS 2×125 MVA
Vinh Long2 220/110kV SS 1×250 MVA + 1×125 MVA
My Tho 220/110kV SS 2×125 MVA
Long An 220/110kV SS 1×250 MVA + 1×125 MVA
Ben Tre 220/110kV SS 2×125 MVA
Tra Vinh 220/110kV SS 2×125 MVA
Cao Lanh 220/110kV SS 2×125 MVA
Total capacity 2,000 MVA
As for the southern Hau River area, there are Hau Giang Province, Soc Trang Province, Bac Lieu Province, Ca
Mau Province, An Giang Province, Kien Giang Province and Can Tho Province. They receive power generated at
Tra Noc power plant (183MW), Ca Mau power plant (1,500MW) and O Mon I power plant (330MW) and power
from the O Mon 500/220kV substation north of the Hau River via the 220kV transmission lines.
Table 3-25 Existing 220/110kV Substation around southern area of Vietnam (South side of Hau River)
O Mon 500/220kV SS 1×600 MVA + 1×450 MVA
Tra Noc 220/110kV SS 1×125 MVA + 1×100 MVA
Rach Gia 220/110kV SS 1×125 MVA + 1×250 MVA
Bac Lieu2 220/110kV SS 2×125 MVA
Soc Trang 220/110kV SS 1×125 MVA
Ca Mau 220/110kV SS 1×250 MVA + 1×125 MVA
O Mon 220/110kV SS 2×125 MVA
Chau Doc 220/110kV SS 2×125 MVA
Kien Vinh 220/110kV SS 2×125 MVA
Thot Not 220/110kV SS 2×125 MVA
Total capacity 2,350 MVA
3-27
Inside Bac Lieu Province, power is supplied from other neighboring provinces via 220kV and 110kV transmission
lines since only one wind power plant with a 16MW unit is connected to the 110kV transmission system. More
specifically, power is supplied via 220kV transmission lines connecting Ca Mau power plant (1,500MW), Bac
Lieu 2 220/110kV substation and Soc Trang 220/110kV substation, 220kV transmission lines connecting Ca Mau,
Gia Rai, Bac Lieu2 (220kV) and Vinh Trach, 110kV transmission lines connecting Ca Mau, An Xuyen, Hong Dan,
Long My, Vi Thanh, Giong Rieng and Rach Gia, Bac Lieu 110kV transmission line, Bac Lieu substation, Gia Rai
substation, Hong Dan substation, etc.
Table 3-26 Existing Substation around Bac Lieu Province

Bac Lieu2 220/110kV SS 2×125 MVA
Bac Lieu 110/22kV SS 1×40 MVA + 1×25 MVA
Gia Rai 110/22kV SS 2×25 MVA
Hong Dan 110/22kV SS 2×25 MVA
Total capacity 415 MVA
c-3) Development plans for new power plants and systems in the southern region of Vietnam
It is necessary to increase power generation capacity in the southern region in order to satisfy the power demand in
the region and reduce the amount of electricity transmitted from northern and central Vietnam. Also, along with
the development of power plants, transmission networks must be enhanced and expanded. Transmission line
development plans are usually drawn following the preparation of power plant development plans in Vietnam. The
power plants, transmission lines and substations that are planned to be developed are listed below:
Table 3-27 The development plan of thermal power plant in the southern area of Vietnam (2014)
Project Name Capacity Estimated Development Schedule
Duyen Hai
Duyen Hai I #1 600 2015
Duyen Hai I #2 600 2016
Duyen Hai III #1 600 2016
Duyen Hai II #1 600 2020
Duyen Hai II #2 600 2020
Long Phu
Long Phu I #1 600 2019
Long Phu I #2 600 2019
Long Phu II #1 600 2022
3-28
Long Phu II #2 600 2023
Long Phu III #1 1000 2030
Long Phu III #2 1000 2030
Song Hau
Song Hau I #1 600 2019
Song Hau I #2 600 2020
Song Hau II #1 1000 2023
Song Hau II #2 1000 2024
Song Hau III #1 1000 After 2030
Song Hau III #2 1000 After 2030
O Mon
O Mon I #2 330 2015
O Mon III 750 2025
O Mon IV 750 2026
O Mon II 750 2024
Kien Luong
Kien Luong I #1 600 2027

Kien Luong I #2 600 2028
Kien Luong II #1 600 After 2030
Kien Luong II #2 600 After 2030
Kien Luong III #1 1000 After 2030
Kien Luong III #2 1000 After 2030
Bac Lieu
Bac Lieu I#1 600 2023
Bac Lieu I #2 600 2024
Total 16,780
Table 3-28 The development plan of 500kV transmission line up to 2030
Estimated Development
No. Transmission Line Circuit×km
Schedule
1 Bypass Đức Hòa 4 x 8 2017

2 Mỹ Tho - Đức Hòa 2 x 60 2017
3 Duyên Hải - Mỹ Tho 2 x 113 2016
4 Ô Môn - Thốt Nốt 2 x 16 2016-2020
5 Bypass - Mỹ Tho 4 x 1 2016
6 Kiên Lương - Thốt Nốt 2 x 107 After 2025
7 Thốt Nốt - Đức Hòa 2 x 145 2021-2025
3-29
8 Sông Hậu - Đức Hòa 2 x 120 2021-2025
9 Kiên Lương - Củ Chi 2 x 235 After 2025
10 Connection of Tiền Giang 8 x 5 2026-2030
11 Connection of Đồng Tháp 4 x 5 2026-2030
1
Total 1,688
Table 3-29 The development plan of 500kV Substation up to 2030

No. Substation Trans.×MVA
Schedule
1 Đức Hòa 1 x 900 2016
2 Thốt Nốt 1 x 600 2011-2015
3 Mỹ Tho 1 x 900 2016
4 Long Phú 1 x 450 2018
5 Duyên Hải 1 x 450 2016
6 Đức Hòa 1 x 900 2016-2020
7 Mỹ Tho 1 x 900 2018
8 Kiên Lương 1 x 450 After 2025
9 Thốt Nốt 1 x 900 After 2025
10 Duyên Hải 1 x 450 2026-2030
11 Long Phú 1 x 450 2026-2030
12 Tiền Giang 2 x 900 2026-2030
13 Đồng Tháp 1 2 x 900 2026-2030
14 Thốt Nốt 1 x 900 2026-2030
Total 10,050.00
Table 3-30 The development plan of 220kV transmission line up to 2030
No. Transmission Line Circuit×km
Schedule
1 Cần Đước - bypass Phú Mỹ - Mỹ Tho 4 x 7 2011-2015

2 500 kV Mỹ Tho - bypass Long An - Cai Lậy 4 x 2 2015
3 500 kV Mỹ Tho - bypass Mỹ Tho - Cai Lậy 4 x 2 2015
4 Duyên Hải PP - Mỏ Cày 2 x 77 2015
5 Mỏ Cày - Bến Tre 2 x 20 2011-2015
6 Mỹ Tho - Bến Tre 1 x 18 2014
3-30
7 Duyên Hải PP - Trà Vinh 2 x 45 2014
8 Vĩnh Long - Trà Vinh 2 x 62 2011-2015
9 KCN Sa Đéc - Bypass Vĩnh Long 2 - Ô Môn 2 x 5 2015
10 Cao Lãnh - Cai Lậy 1 x 54 2018
11 Cao Lãnh - Thốt Nốt 1 x 27 2011-2015
13 Long Phú PP - Sóc Trăng 4 x 25 2011-2015
14 Long Phú PP - Cần Thơ - Trà Nóc 2 x 95 2016-2020
15 Phụng Hiệp - bypass Ô Môn - Sóc Trăng 4 x 6 2017
16 Long Xuyên 2 - bypass Châu Đốc - Thốt Nót 4 x 5 2014
17 Cà Mau PP - Cà Mau 1 x 5 2011-2015
18 KCN Sa Đéc - Ô Môn 2 x 28 2016-2020
19 Tân An - bypass Cần Đước - Mỹ Tho 4 x 5 2016-2020
20 Gò Công - Cần Đước 2 x 22 2016-2020
21 Vĩnh Long 3 - bypass Trà Vinh - Vĩnh Long 2 4 x 3 2021-2025
22 Lấp Vò - Thốt Nốt 2 x 12 2016-2020
23 Châu Thành - bypass Long Xuyên 2 - Châu Đốc 4 x 2 2021-2025
24 Mỹ Tú - bypass Phụng Hiệp - Sóc Trăng 2 x 12 2016-2020
25 Giá Rai - bypass Bạc Liêu 2 - Cà Mau 4 x 2 2021-2025
26 Ngọc Hiển - Cà Mau 2 x 55 2016-2020
27 Cái Nước - Cà Mau 2 x 45 2016-2020
28 Gò Quao - bypass Cà Mau - Rạch Giá 2 x 6 2021-2025
29 Vị Thanh - bypass Cà Mau - Bạc Liêu 2 2 x 8 2021-2025
30 Kiên Lương PP - Kiên Bình 2 2 x 10 2016-2020
31 Kiên Lương PP - Châu Đốc 3 x 99 2016-2020
32 Long An PP - Cần Đước 2 x 11 2021-2025
33 Long An PP - bypass Gò Công 2 x 2 2021-2025
34 500 kV Mỹ Tho - Mỹ Tho 2 x 12 2021-2025
35 Bến Tre - Ba Tri 2 x 31 2021-2025
37 Cái Bè - bypass Cai Lậy - Cao Lãnh 2 x 2 2021-2025
39 Châu Đốc - Hồng Ngự 2 x 32 2016-2020
40 Hồng Ngự - Thanh Bình 2 x 30 2021-2025
41 Thanh Bình - Cái Bè 2 x 62 2021-2025
42 Chợ Mới - bypass Thanh Bình - Hồng Ngự 2 x 10 2021-2025
43 Ô Môn 2 - bypass Ô Môn - Thốt Nốt 4 x 2 2021-2025
44 Hòn Đất - bypass Kiên Lương - Rạch Giá 2 x 2 2021-2025
45 Kiên Lương PP - Hà Tiên 2 x 23 2021-2025
46 Hồng Dân - bypass Giá Rai - Bạc Liêu 2 2 x 16 2021-2025
47 Cà Mau PP - Trần Văn Thời 2 x 28 2021-2025
48 Long An PP - Cần Giuộc 2 x 11 2026-2030
3-31
49 Chợ Gạo - bypass Long An - 500 kV Mỹ Tho 4 x 2 2026-2030
50 Thạnh Hóa - 500 kV Mỹ Tho 2 x 26 2026-2030
51 Cái Bè 2 - bypass Cái Bè - Cai Lậy 2 x 2 2026-2030
52 500 kV Tiền Giang - bypass Thanh Bình - Cái Bè 2 x 2 2026-2030
53 500 kV Tiền Giang - bypass Cao Lãnh - Cái Bè 2 2 x 2 2026-2030
54 500 kV Tiền Giang - Bình Minh 2 x 25 2026-2030
55 Tháp Mười - bypass Thanh Bình - Cái Bè 4 x 2 2026-2030
56 Phú Tân - bypass Hồng Ngự - Châu Đốc 4 x 1 2026-2030
57 Tri Tôn - bypass Kiên Lương - Châu Đốc 4 x 10 2026-2030
58 Cờ Đỏ - bypass Cà Mau - Ô Môn 4 x 2 2026-2030
59 Cầu Kè - bypass Trà Vinh - Vĩnh Long 3 2 x 12 2026-2030
60 Chợ Mới - Châu Thành 2 x 14 2026-2030
61 500 kV Đồng Tháp 1 - bypass Thanh Bình - Hồng 4 x 2 2026-2030
Ngự
62 500 kV Đồng Tháp 1 - bypass Chợ Mới 2 x 2 2026-2030
Total 2,439
Table 3-31 The development plan of 220kV Substation up to 2030

No. Substation Trans.×MVA
Schedule
1 Long An 1 x 250 2014
2 Bến Lức 1 x 250 2011-2015
3 Đức Hòa 2 x 250 2014
4 Cần Đước 1 x 250 2015
5 KCN Sa Đéc 1 x 250 2015
6 Châu Đốc 2 x 250 2014
7 Long Xuyên 2 1 x 250 2017
8 Mỹ Tho 1 x 250 2014
9 Cai Lậy 1 x 250 2014
10 Vĩnh Long 2 1 x 250 2015
11 Bến Tre 1 x 250 2016
12 Thốt Nốt 1 x 250 2017
13 Phụng Hiệp 2 x 125 2011-2015
14 Trà Vinh 1 x 125 2015
15 Sóc Trăng 1 x 125 2015
16 Cà Mau 1 x 250 2014
17 Bạc Liêu 1 x 125 2011-2015
3-32
18 Bến Lức 1 x 250 2016-2020
19 Tân An 1 x 250 2016-2020
20 Cao Lãnh 1 x 250 2016-2020
21 Lấp Vò 2 x 250 2016-2020
22 Long Xuyên 2 1 x 250 2016-2020
23 Châu Thành 1 x 250 2021-2025
24 Cai Lậy 1 x 250 2021-2025
25 Mỹ Tho 1 x 250 2016-2020
26 Gò Công 2 x 250 2016-2020
27 Vĩnh Long 2 1 x 250 2016-2020
28 Vĩnh Long 3 1 x 125 2016-2020
29 Bến Tre 1 x 250 2015
30 KCN Sa Đéc 1 x 250 2016-2020
31 Mỏ Cày 1 x 125 2016
32 Kiên Bình 2 x 250 2016-2020
33 Gò Quao 1 x 125 2016-2020
34 Thốt Nốt 1 x 250 2016-2020
35 Ninh Kiều 1 x 125 2016-2020
36 Vị Thanh 1 x 125 2021-2025
37 Duyên Hải 1 x 250 2016-2020
38 Mỹ Tú 1 x 125 2016-2020
39 NĐ Long Phú 1 x 125 2016-2020
40 Giá Rai 1 x 125 2016-2020
41 Ngọc Hiển 2 x 125 2016-2020
42 Tam Bình 2 x 250 2021-2025
43 Tân An 1 x 250 2021-2025
44 Đức Hòa 2 2 x 250 2021-2025
45 Đức Hòa 3 1 x 250 2021-2025
46 Cần Đước 1 x 250 2021-2025
47 Thanh Bình 2 x 250 2021-2025
48 Hồng Ngự 1 x 250 2016-2020
49 Châu Thành 1 x 250 2021-2025
50 Chợ Mới 1 x 250 2021-2025
51 Cái Bè 2 x 250 2021-2025
52 Cái Bè 2 1 x 250 2021-2025
53 Vĩnh Long 3 1 x 250 2021-2025
54 Mỏ Cày 1 x 250 2016-2020
55 Ba Tri 1 x 250 2021-2025
56 Gò Quao 1 x 125 2021-2025
3-33
57 Hòn Đất 1 x 250 2021-2025
58 Trà Nóc 2 x 250 2021-2025
59 Ô Môn 1 x 250 2021-2025
60 Ninh Kiều 1 x 250 2016-2020
61 Ô Môn 2 1 x 125 2021-2025
62 Vị Thanh 1 x 125 2021-2025
63 Phụng Hiệp 1 x 250 2021-2025
64 Trà Vinh 1 x 250 2021-2025
65 Duyên Hải 1 x 250 2021-2025
66 Sóc Trăng 1 x 250 2021-2025
67 Mỹ Tú 1 x 125 2021-2025
68 NĐ Long Phú 1 x 125 2021-2025
69 Giá Rai 1 x 125 2021-2025
70 Hồng Dân 1 x 125 2021-2025
71 Trần Văn Thời 1 x 250 2021-2025
72 Đức Hòa 3 1 x 250 2026-2030
73 Đức Hòa 4 2 x 250 2026-2030
74 Cần Giuộc 2 x 250 2026-2030
75 Thạnh Hóa 1 x 250 2026-2030
76 KCN Sa Đéc 1 x 250 2026-2030
77 Hồng Ngự 1 x 250 2021-2025
78 Tháp Mười 1 x 250 2026-2030
79 Chợ Mới 1 x 250 2026-2030
80 Phú Tân 2 x 250 2026-2030
81 Tri Tôn 2 x 250 2026-2030
82 Cái Bè 1 x 250 2026-2030
83 Cái Bè 2 1 x 250 2026-2030
84 Chợ Gạo 2 x 250 2026-2030
85 Vĩnh Long 3 1 x 250 2026-2030
86 Bình Minh 1 x 250 2026-2030
87 Mỏ Cày 1 x 250 2026-2030
88 Ba Tri 1 x 250 2026-2030
89 Gò Quao 1 x 250 2021-2025
90 Hòn Đất 1 x 250 2026-2030
91 Hà Tiên 2 x 250 2026-2030
92 Ô Môn 1 x 250 2026-2030
93 Ninh Kiều 1 x 250 2026-2030
94 Ô Môn 2 1 x 250 2026-2030
95 Cờ Đỏ 2 x 250 2026-2030
3-34
96 Vị Thanh 1 x 250 2026-2030
97 Phụng Hiệp 1 x 250 2026-2030
98 Trà Vinh 1 x 250 2026-2030
99 Cầu Kè 1 x 125 2026-2030
100 Sóc Trăng 1 x 250 2026-2030
101 Mỹ Tú 1 x 250 2026-2030
102 NĐ Long Phú 2 x 250 2026-2030
103 Bạc Liêu 2 2 x 250 2021-2025
104 Hồng Dân 1 x 125 2026-2030
105 Ngọc Hiển 2 x 250 2021-2025
106 Trần Văn Thời 1 x 250 2026-2030
Total 23,750.00
d) Coal procurement
d-1) Outline of coal procurement plans
The plan for the Project includes coal-fired thermal power plants that utilize imported coal, and since the site
will face the open ocean, the procurement of coal by marine transportation will be considered. There are two
options for the procurement: directly receiving imported coal from 30,000DWT bulk ships (30,000DWT plan)
and procuring coal from 10,000DWT bulk ships via a coal transfer station in Vietnam (10,000DWT plan).
In the 30,000DWT plan, ocean-going ships will be received at the plant site and since the planned power plant
site is close to international shipping routes, the convenience and access for the area will be enhanced
exponentially through the development of port and harbor facilities and shipping routes. However, the planned
power plant site is in the Mekong Delta region and faces shoals; thus the cost for dredging, construction of
levees and other offshore engineering work required for a port development will be significant. In the case of
the 30,000DWT plan, the sources of coal will have to be nearby countries such as Indonesia and Australia based
on the stability of coal procurement and cost competitiveness, which will be a limiting factor in terms of
ensuring Vietnam’s energy security. Especially some energy exporting countries such as Indonesia restrict
export in order to first secure energy resources for domestic use under national policies. It should be
remembered that there could be risks that might make the conclusion of long-term supply agreements difficult.
With the 10,000DWT plan, the types of coal to be procured will be more than those in the 30,000DWT plan,
potentially improving the energy security of Vietnam while reducing the cost and amount of work to develop
necessary port facilities. However, there are concerns for risks associated with delay in the development of the
coal transfer station in Vietnam and relatively high prices of coal due to fees imposed by such transfer stations,
etc. In this context, both the 30,000DWT plan and 10,000DWT plan are examined in this study.
3-35
d-2) Outline of the coal transfer station plan in Vietnam
When planning for a coal transfer station in Vietnam, there are multiple options for the location, and at this point,
the construction of the station in the Duyen Hai area is considered most viable. In this plan, the coal transfer
station will supply coal to coal-fired thermal power plants located inland near a river; however for the future, the
plan considers supplying coal to eight projects such as Duyen Hai, Song Hau, Long Pho, Kien Luong, An Giang
and Bac Lieu.
Considering the use of the station for the Project, and based on the information above and the fact that the
unloading ship will be a barge not a bulk ship as well as the risk associated with the coal transfer station
development schedule, preparations might have to be made in case the 30,000DWT plan is adopted.
Figure 3-7 Location Map from Duyen Hai coal centre to planned area of power plant
3-36
The plan for the Duyen Hai coal transfer station is summarized below:
Table 3-32 Basic Plan of Duyen Hai Coal Centre

Phase 1 Phase 2 Phase 3
Coal exporter Indonesia / Australia
Size of ship received 100,000DWT (Same as on the left) 160,000DWT
(16m Draught) (19m Draught)
COD 2023 2028 2033
No. of receiving berth 2 3 4
Traded amount/year 8.5 million t/year 18 million t/year 31 million t/year
Supply excluding that 3.8 million t/ year 12 million t/ year 25 million t/ year
to DH PP
Coal storage yard 300,000T 1,000,000T 2,000,000T
capacity
Coal supplied to Duyen Hai, Song Hau, Long Phu, Bac Lieu, An Giang, Long An
Discharge ship size 5,000DWT/10,000DWT barge
(4.5m Draught, Quan Chanh Bo water way expansion is planned)
No. of discharge berth 2 4 7
Discharge berth size 9.0m×160m×40m
Days of operation 350 days/year (including regular maintenance)
Berth calmness 97.5% assuming levees in place
d-3) Depth of the sea near the planned power plant site
The depth of the sea is about 5 - 6m at the shore 7-8km away from the coast, and about 12m at 16 km away from
the coast.
Figure 3-8 Sea bed depth around the planned are of power plant
3-37
Table 3-33 Example of bulk ships for coal
30,000 DWT coal ship 10,000 DWT coal ship

Type of ship Type 32 Type 10
Extreme draught 9.65 m 10.40 m
Lengh overall 180.0 m 113.33 m
Beam 30.0 m 19.40 m
e) Steam requirements for the plants

The majority of thermal power plants in operation in Vietnam are subcritical plants and while supercritical plants
are being developed, they have not been actually operated. As the planned operation commencement of the Project
is in the 2020s, there should be enough time to accumulate enough experience of operating supercritical plants.
In that case, the introduction of ultrasuper critical plants in Vietnam might be considered as the next step; thus two
options, namely the adoption of the supercritical plant or ultrasuper critical plant, are examined in this study. For
the specific steam requirements for the respective plant, the steam requirements were selected based on the ample
operational record of Kyushu Electric Power to be used in the plan.
Table 3-34 Basic Design of Steam condition for power plant

600 MW-class 600 MW-class 1,000 MW-class
Supercritical plant Ultra supercritical plant Ultra supercritical plant
Main Steam Press 24.1 MPaA 24.1 MPaA 24.1 MPaA
Main Steam Temp 566 ℃ 593 ℃ 593 ℃
RH Steam Temp 566 ℃ 593 ℃ 593 ℃
f) Fuel properties of the potential coal used

When assuming the power plant operation using imported coal, the realistic sources of coal will be Indonesia or
Australia based on the transportation cost, etc. However, there are characteristics for each type of coal in terms of
the prospect for stable procurement and price competitiveness, and an examination is done based on the coal
properties that were used in the recent bid for coal to be used in the Duyen Hai power plant. More specifically, the
coal properties in the ranges below are assumed:
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Table 3-35 Estimated range of design coal property
Coal Property Criteria
Allowable Unallowable
Moisture 8～16 % ＞ 16 %
Inherent moisture 3～10 % ＞ 10 %
Calorific value 5980 ～ 6554 kcal/kg ＜ 5980 kcal/kg
Ash (Equilibrium moisture base） 4～16 % ＞ 16 %
Volatile matter 36～42 % ＜ 36 % or ＞42 %
Sulfer 0.4～1.4 % ＞ 1.4 %
MgO+Na2O in ash 1.5～4.0 % ＜ 1.0 %, ＞ 4.0 %
K2O in ash 1.0～2.0 % ＜ 0.6 %, ＞ 2.0 %
SiO2/Al2O3 ratio in ash ＜ 2.5 ＞ 3
HGI ＞ 50 ＜ 45
Ash melting point ＞ 1250 ℃ ＜ 1200 ℃
Coal particle diameter ＜50 ㎜：100 %、＜1 ㎜：＜15 % ＜1 ㎜：＞ 15 %
Based on the ranges of coal properties as shown above, types of coal that have price competitiveness and can be
supplied stably over a long period of tome are listed below:
Table 3-36 The estimated coal property to be procured for this project
Coal name BAU coal Targinsky coal Moolarben coal Solntsevsky coal
Country of coal mine Indonesia Russia Austraria Russia
HHV (kcal/kg) Equilibrium 6,000 6,920 6,640 5,644
moisture base
Receied base 5,100 6,450 6,100 5,137
LHV (kcal/kg) Received base 4,700 6,150 5,850 4,826
Total moisture Received base 26 10.3 10.5 18
content (wt%)
HGI 50 48.2 50 44
Technical analysis（Equilibrium moisture base）
Inherent moisture (wt%) 12 3.8 2.5 9.9
Fixed carbon (wt%) 41 52.2 51.5 39.9
Volatile matter (wt%) 41 33.8 29 38.1
Ash (wt%) 6 10.2 17 12.1
Total 100 100 100 100
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Coal name BAU coal Targinsky coal Moolarben coal Solntsevsky coal
Fuel ratio 1.0 1.5 1.78 1.047
Sulfer (wt%) 0.3 0.4 0.5 0.17
Elemental analysis （Dry basis）
Carbon (wt%) 70.21 73.5 68.94 65.61
Hydrogen (wt%) 4.68 5.01 4.38 4.92
Oxygen (wt%) 17.32 8.28 7.18 14.75
Nitrogen (wt%) 1.4 2.22 1.65 1.1
Sulfur (wt%) 0.3 0.41 0.50 0.19
Ash (wt%) 10.6 17.44 13.43
g) Environmental load
The construction and operation of coal-fired thermal power plants entail certain impacts on the surrounding
environment such as potential resettlement of residents to acquire the land required and environmental load
from the operation. Therefore, during the preparation of the power plant plan, it is necessary to examine these
impacts and come up with countermeasures in advance. The existence of mangrove forests in the sea near the
planned power plant side for the Project has been confirmed and preliminary examination of measures is
necessary, such as the reduction of the area of mangrove to be cleared to make way for the power plant site. The
details are given in Chapter 4.
h) Funding methods
For the Project, about 250,000,000,000 JPY is estimated for the land acquisition necessary for the three phases,
land preparation, construction of common facilities such as port facilities, and power generation facilities, etc.
for Phase 1, and the methods for securing the funds to cover these costs must be considered. The details are
given in Chapter 5.
3) Technological methods
a) Power generation method
The main methods of thermal power generation beyond supercritical power generation include the supercritical
and ultrasuper critical power generation with the use of the once-through boiler. The boiler must be selected based
on the steam pressure and temperature, and if the steam requirement is above the critical point, the once-through
boiler must be selected. As for the turbine facility, the steam turbine is planned to be the condensing turbine, and
for the turbine cycle, the regeneration cycle with the multiple-stage steam extraction from the turbine is planned in
order to create necessary facilities.
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Table 3-37 The plant performance estimation for this project
Supercritical Ultra Supercritical
600 MW-class×2 600 MW-class×2 1,000 MW-class×1
Gross Plant Efficiency 41.08 % 41.88 % 41.96 %
（HHV）
Flue Gas Flow About 2,800 t/h×2 About 2,640 t/h×2 About 4,000 t/h×1
Necessary cooling water 55.46 m3/s 53.64 m3/s 40.52 m3/s

volume
The Project aims to build coal-fired thermal power plants in three phases, assuming the construction of two units
with 600MW per phase as a rule. If the plan is to build one coal-fired thermal unit with 1,000MW, which comes to
about the same amount of output, the reduction in the construction cost and the area to be developed for the plant
site, etc. can be expected. Thus, in this study, three plans, namely the construction of 600MW supercritical plant,
600MW ultrasuper critical plant and 1,000MW ultrasuper critical plant, are examined.
b) Type of desulfurization equipment

The use of the lime-gypsum method among the wet desulfurization methods is the mainstream in Japan at present.
However for the operation at the location of the Project, the use of sea water desulfurization technology is
assumed for the purpose of this study since there are many matters that are not yet settled such as the way to
procure necessary chemicals and the way to dispose byproducts. The desulfurization method will be revised as
needed based on the data acquired in the future study.
ｃ）Scale of coal receiving facilities

For the Project, the examination is done for the 30,000DWT plan which assumes the receiving of imported coal
directly and the 10,000DWT plan which assumes the use of coal transfer station inside Vietnam. Revisions will be
made as needed based on the data acquired in the future study since the optimum solution will change with the
progress of the coal transfer station development, international market trend on coal prices, and energy status.
3-41
(4) Outline of the Project Plan
1) Basic policies in determining the Project contents
a) Project implementing entity

Back in 2010, the Vietnamese government was planning the construction of multiple power plants in order to
meet the power demand in the southern region based on PDP7, and now in 2014, the development of those
power plants has not progressed according the plans due to issues of the Vietnam – China relationship, etc.
Power Generation Corporation 2 (EVNGenco2) which is under the direct control of EVN was developing new
O Mon power plant but the project has also stalled.
Therefore, EVNGenco2 has indicated its willingness to participate in the Project as the implementing entity for
the new power plant development. There is information obtained that EVNGenco2 is listed as the implementing
entity in the revised PDP7, through lobbying to IE, etc. Given this situation, it is likely that EVNGenco2 will be
selected as the implementing entity of the Project. As explained above, it is assumed that the Project will be
implemented with EVNGenco2 as the implementing entity.
b) Period of the Project implementation

In 2010, PDP7 stated the start of operation for the Project as 2028. Through interviews, it was revealed that
the revised PDP7 is likely to state the time for the start of operation for Phase 1 to be 2023 – 2024, potentially
accelerating the schedule. Therefore, the time for the start of the Project is assumed based on the information.
c) Installed capacity
Usually in designing the power generating capacity for a power generation facility, a larger capacity is planned
in order to reduce the cost of construction and operation by taking advantage of economy of scale. On the other
hand, for the purpose of stable system operation, the consideration is made so that the generating capacity of the
facility accounts for the maximum of about 7 – 10% of the power demand, by taking into consideration the
effect the facility will have on the grid in case such facility has failed, etc. and unable to supply power.
Power demand in Vietnam for 2013 was about 31,000MW and has been on the increase at the rate of 10 - 15% a
year since then. For reasons given above, the connection of 1,000MW capacity facility to the grid will also be
considered; thus this study will give consideration to the development of power plants with the generation
capacity of 600MW, a popular choice in Vietnam, and those with 1,000MW for the Project.
d) Connection to the power grid

The generation capacity of all the power plants built by the Project will be large at 3,000 - 3,600MW and the
plants must be connected to a 500kV system for the stable and economic transmission of all the power
generated at the plants. However, in the southern region of Vietnam, power supply has continuously been below
power demand, thus power must be supplied to the 220kV system or to the 220kV system from the 500kV
system via the tie transformers. Therefore, two plans for connecting to transmission lines are assumed for the
3-42
Project; namely, supplying the entire power to the 500kV system (500kV connection plan) and supplying it to
the 500kV system and 220kV system (500/220kV connection plan).
d-1) 500kV connection plan
Figure 3-9 The grid connection from power plant to 500kV system
MY PHUOC
CU CHI LONG PHU SONG HAU
TIEN GIANG
O MON
Rach Gia
THOT NOT MY THO
Go Quao O MON
Bac Lieu～THOT NOT 500kV Line(2 circuits)
Vi Thanh Length：About 124 ㎞
Soc Trang
ND Ca Mau
Ca Mau Gia Rai Hong Dan Bac Lieu
　　　　　　　　　500ｋV System
Bac Lieu Power Station 　　　　　　　　　220ｋV System
d-2) 500/220kV connection plan
Figure 3-10 The grid connection from power plant to 500kV/220kV system
MY PHUOC
CU CHI LONG PHU SONG HAU
TIEN GIANG
O MON
Rach Gia
THOT NOT MY THO
Go Quao O MON
Bac Lieu～THOT NOT 500kV Line (2 circuits)
Vi Thanh
Length：about 124 ㎞
Soc Trang
ND Ca Mau
Branch①
Ca Mau Gia Rai Hong Dan Branch② Bac Lieu
Connecting to Gia Rai～Bac Lieu Existing 220kV Line (2 circuits) by p branch
Length of Branch Line ①： About 11.5 ㎞
Length of Branch Line ②： About 12.5 ㎞
Bac Lieu Power Station 　　　　　　　　　500ｋV System
　　　　　　　　　220ｋV System

3-43
e) Coal procurement methods
As the Project planned to build coal-fired thermal plants that use imported coal, port facility and coal unloading
and transportation facility are planned based on the two marine transportation plans: the 30,000DWT plan and
10,000DWT plan.
f) Methods of procuring water for plant use

The basic plan for the procurement of water for plant use is to get river water from the Quan Lo-Phung Hiep water
way. However since the amount water obtainable during the dry season is uncertain and the quality of the river
water is not stable, the plan to use such river water is supplemented with the plan to introduce seawater
desalination units for examination
g) Securing access routes and procuring plant construction materials

The National Highway 1 is a major road located in the north of the planned power plant site of the Project, and can
be used to transport heavy loads that are necessary for the construction work. However, most roads near the
planned power plant site have a road width of about 6.5m and are not suitable for the transportation of heavy loads.
Therefore, the road from the National Highway 1 to the planned plant site (about 12 km in length) must be
developed through broadening of the road and enhancing load-bearing strength through investment.
There are two potential access routes to the planned power plant site, the first one being traveling on the National
Highway 1 to Gia Rai district and then getting on the provincial road 979, and the second one is to use the road
between Xom Lung and Cai Cung that forks from the National Highway 1. However, the road between Xom Lung
and Cai Cung crosses many rivers and the construction of bridges will be required.
As the plant construction materials such as cement, soil, sand, timbers, etc. cannot be procured locally, they must
be obtained from other neighboring areas. Cement could be obtained from Ha Tien cement factory (Can Tho
City/Ho Chi Minh City), soil and sand from Tan Chau and Cao Lanh, and stone materials from Bien Hoa via
marine transportation. The ferrous material, bricks and other construction materials must be procured from other
regions. Steel stock for the construction of the main buildings such as the boiler building and turbine building is
not manufactured in Vietnam and must be imported. When transporting those materials, marine transportation will
be assumed as transport by road will have restrictions such as issues with the conditions of the roads and weight
limitation. For the land preparation work on the planned power plant site, soil and sand from dredging work to
prepare the basin and channel will be used.
Figure 3-11 Road condition around the planned area of power plant
3-44
h) Power source for construction work
As a power source to be used during the construction and trial operation, power could be supplied from 110kV
transmission lines connecting Gia Rai and Ca Mau or Gia Rai and Bac Lieu with a T-junction, and by building an
110kV, 1×40MVA switchyard on the power plant site. An alternative is to receive power from the existing 22kV
transmission line in the early stage of the construction, and in the trial operation, etc. afterward to receive power
from 110 kV Ganh Hao substation once the substation starts its operation. However, the development plan has not
been drawn for years following 2016 by Bạc Liêu Distribution Committee at this point, and it needs to be clarified
through later study. The power receiving and transforming facility installed for the construction work will be used
as the distribution facility for the nearby area after the completion of the power plants.
2) Concept design and facility specifications

Based on the study results given above, the power plant construction plan was created assuming that the plants are
operated for base load operation with a high utilization factor. The basic design policies are explained below:
a) Site layout plan

The layout of the power generation facilities was examined by considering the direction of the prevailing wind and
the reduction of its interference to transmission line connection, potential interference to heavy machinery used
during the construction, and interference area with the mangrove forests. The possible layout plan is shown below.
However, the layout plan is for reference only and will be reexamined during the detailed design stage.
Figure 3-12 Layout option of 600MW-class supercritical plant × 2 units

Site Layout Power Train Configuration
3-45
Figure 3-13 Layout option of 600MW-class Ultra supercritical plant × 2 units
Figure 3-14 Layout option of 1000MW-class Ultra supercritical plant × 1 unit

3-46
b) Boiler and auxiliary equipment
For the selection of steam requirement, the requirements that Kyushu Electric Power has ample experience with
are used. For other specifications, the types and methods are those that Japanese manufacturers have ample record
and experience. The type of boilers is the once-through boiler on the assumption that supercritical or ultrasuper
critical power generation is adopted.
b-1) Main boiler body

Based on Kyushu Electric Power’s record and experience in choosing coal-fired plants, the specifications for the
main boiler body are assumed as follows:
Table 3-38 The design estimation for Main Boiler
600MW -class 600MW-class 1,000MW-class
Boiler type Supercritical, Sliding pressure once-through boiler, radiant RH type
Main steam flow 1935.7 t/h 1872.1 t/h 2825.7 t/h
Main steam pressure 24.1 MPaA 24.1 MPaA 24.1 MPaA
Main steam temp. 570 ℃ 597 ℃ 597 ℃
Reheat steam pressure 4.59 MPaA 4.9 MPaA 4.9 MPaA
Reheat steam temp. 568 ℃ 595 ℃ 595 ℃
Boiler inlet feed water 283 ℃ 290 ℃ 290 ℃
temp.
AH outlet exhaust gas Approx. 130 ℃
temp.
Draft method Balanced draft method
Boiler efficiency (HHV) 87.66 % 87.84 % 87.84 %
b-2) Boiler auxiliary equipment

The plan for the boiler auxiliary equipment is shown in the table below, based on the record of Kyushu Electric
Power. However, the revisions will be made as needed with the progress of the detailed study in the future.
Table 3-39 The design estimation for Main Boiler Auxiliaries
Coal banker Type Square Celled Steel
Capacity To be decided according to the detailed
design
Cool feeder Type Gravimetric Coal Feeder
design
Coal Pulverizer Type Vertical mill
design
Coal burner Type Pulverized coal unit directly pressurized
3-47
Capacity Front wall：3stages×6、Rear wall：3stages×6
Ignition burner Type Electrical ignition air spray
Capacity 36units
Piplot burner Type Air spraing type
Capacity Front wall：1stages×6、Rear wall：1stages×6
Force draft fan Type Horizontal first stage rotor blade variable
pitch axial flow type
Capacity 50 %×2
Induced draft fan Type Rotor blade variable pitch axial flow type
Capacity 50 %×2
Primary air fan Type Horizontal 2 stage blade variable pitch axial
flow type
Capacity 50 %×2
Gas recirculating fan Type Horizontal axis double suction centrifugal
type
Capacity 100 %×2
Preheater Type Regenerative rotary vertical axis type
Capacity 50 %×2
Stack Type Co-stayed steel stack with 2 flows Four-leg
support steel tower
Capacity Approx. 210m
Gas flow 20 m/s or below
speed
c) Steam turbine and turbine auxiliary equipment

c-1) Main steam turbine body
As the steam turbine must have a high output, the condensing turbine was adopted and the turbine cycle method
will be the reheat regenerative cycle method.
Table 3-40 The design estimation for Steam Turbine and Turbine Cycle
600 MW -class 600 MW-class 1,000 MW-class
Turbine ype Tandem compound
Tandem compound 3casing 4 flow exhaust
4casing 4 flow exhaust
Reheated/Regerative type
Reheated/Regerative type
Main steam pressure 24.1 MPaA 24.1 MPaA 24.1 MPaA
Main steam temp. 566 ℃ 593 ℃ 593 ℃
Main steam flow 1935.7 t/h 1872.1 t/h 2825.7 t/h
Reheat steam pressure 4.45 MPaA 4.78 MPaA 4.78 MPaA
Reheat steam temp. 566 ℃ 593 ℃ 593 ℃
3-48
Reheat steam flow 1682.9 t/h 1602.6 t/h 2439.4 t/h
LP turbine exhaust
710 mmHg.vac
pressue
Number of extraction
8 stages（LP heater：4 stages, Deaerator：1 stage, HP heater：3 stages）
stges
Turbine cycle efficiency 46.86 % 47.68 % 47.76 %
c-2) Turbine auxiliary equipment

Table 3-41 The design estimation for Steam Turbine Auxiliaries
Condenser Type Double steam Flow semi-chamber counter
current flow surface cooling type
Cooling pipe Titanium pipe for heat exchange
material
Condensate pump Type Vertical multistage diffuser type
Capacity 50 %×3 or 100 %×2
Condensate booster pump Type Horizontal axis multistage diffuser type
Capacity 50 %×3 or 100 %×2
Condensate vaccume pump Type Water sealing rotary type
Capacity 100 %×2
Condensate fileter Type Cartridge filter
Capacity 100 %×2
Condensate demineralizer Type Mixed bed demineralizer
Capacity 33 %×4units + renegeneration equipment 1
set
Turbine-driven boiler feed water pump Type Horizontal barrel type centrifugal pump
Capacity 50 %×2
Boiler feed water booster pump Type Horizontal double suction centrifugal pump
Capacity 50 %×2
Motor-driven boiler feed water pump Type Horizontal barrel type centrifugal pump
Capacity 25 %×1
Feed water heater Type Surface heating U-shape pipe
Capacity #1/2/6/7/8:50 %×2、#3/4：100 %×1
Deaerator Type Horizontal pressurized
Capacity 100 %×1
Circulating pump Type Vertical 2 -bed variable vane mixed flow
pump
Capacity 50 %×2
Bearing cooling water pump Type Horizontal double suction centrifugal pump
Capacity 50 %×3
3-49
d) Power generation facilities
d-1) Generator and main transformer
Table 3-42 The design estimation for Generators and Main Step-up Transformers
600MW/1,000MW-class plant
Generator
Type Stator/direct water cooling, rotor/hydrogen cooling 3-phase generator
Revolution 50 Hz
Rated voltage 20～30 kV (according EPC manufacturer’s standard)
Power factor 0.85 (lagging) ～0.9 (leading)
Insulation type F type insulation
Temp. rise limit Less than alloable temp. of class B insulation
Stator： Directly water-cooled system
Cooling method
Rotar： Directly hydrogen-cooled system
Excitation method Thyristor direct-excitation method
Main Tr
Oudoor oil-immersed single-phase/3-phase Tr
Type
（w. tap changer during loading）
Frequancy 50 Hz
Capacity 800MVA / 1200MVA
Rated voltage
500 kV±10%
（Secondary side）
Cooling method ONAN/OFAF (according EPC manufacturer’s standard)
Neutral earthing Direct earthing at the HP side neutral point
d-2) Outdoor switchyard

Since the generating output for the entire power plants is large and transmission losses must be reduced for the
Project, the 500kV-class outdoor switchyard will be planned to facilitate the connection to 500kV transmission
lines. For the Project, the 1+1/2 configlation outdoor switchyard was planned, assuming that power from all three
phases will be sent to 500kV transmission lines as the basic configuration.
The use of the 1+1/2 configlation started originally to facilitate the addition of circuits to the ring bus
configuration. In this configuration, one circuit has two breakers. In the case of a circuit fault, two connected
breakers will be tripped. With the configuration of one bank, two circuits and three breakers, the fault of the
middle breaker will impact two circuits, but the fault of a breaker connected to the bus will impact only one
circuit.
The inspection and repair of a breaker can be done without affecting any circuit except for the one being repaired.
Further, an outage of any bus will not affect the circuits and thus this is the most reliable configuration and any
addition to the configuration will be relatively easy. This configuration has a somewhat low cost compared to the
double bus + forward bus configuration and the configuration of the bus protection device is not very different
3-50
from that of double bus. However, with more direct equipment, the necessary area will be larger.
The configuration plan for the 500kV outdoor switchyard for the Project is shown below:
Figure 3-15 Substation option for 500kV grid connection
To 500kV Grid System From Bac Lieu Phase3
From Bac Lieu Phase1 From Bac Lieu Phase2
Figure 3-16 Substation option for 500kV/220kV grid connection

To 500kV Grid System
To 220kV Grid System
From Bac Lieu Phase3 From Bac Lieu Phase2 From Bac Lieu Phase1

3-51
e) Control device
e-1) Configuration of control devices
Here, the main instrumentation & control system is explained, along with the trend of the latest control and
instrumentation system, as well as a case of introduction of a superior system in terms of price, reliability and
system series continuity including the facility configuration. From the viewpoint of cost reduction after the start of
operation, it is important to select devices making up the control system, which could be used on the continuous
bases without a large-scale system revision, even in the case of technological progress or if the items are
discontinued.
The standard system configuration plan and devices in the control & instrumentation system are shown below:
Figure 3-17 System configuration plan for large-capacity thermal power units
ＤＤＣＭＩＳ OPERATING STATIONS
RESOLUTION=1920×1080
DISPLAY COLORS=128 NOS
RAM CAPACITY = 4 GB
COMPUTER ROOM HDD CAPACITY = 500 GB
NO. OF ASSIGNABLE KEYS
PER OPERATOR KEYBOARD = 101
ALL OPERATING STATION ARE
UNIT INCHARGE ROOM

HISTORIAN ALARM HISTORIAN ALARM ENGG. & DIAGNOSTIC ENGG. & DIAGNOSTIC A3 SIZE PERFORMANCE CALCULATION PERFORMANCE CALCULATION EWS FOR TURBINE OWS FOR
& MIS EWS SERVER-1 & MIS EWS SERVER-2 OS-1 A3 SIZE OS-2 LASER JET & OPTIMISATION EWS & OPTIMISATION OS SHIFT SUPERVISOR OS SHIFT SUPERVISOR TSE OS SER EWS TSC EWS CONTROL SYSTEM STATION INCHARGE(XEN)
HIGH SPEED HIGH SPEED A4 SIZE LJ LASER JET A4 SIZE LJ CO LOURED PRINTER A3 SIZE LJ A4 SIZE LJ A4 SIZE LJ HIGH SPEED A4 SIZE LJ A4 SIZE LJP A4 SIZE LJ
DMP PRINTER DMP PRINTER PRINTER COLOR COLOR PRINTER PRINTER COLOR CUM SCANNER/ COPIER PRINTER CO LOR PRINTER B/ W PRINTER CO LOR DMP PRINTER PRINTER COLOR COLOR PRINTER B/ W
COLO R COLOR COLOR COLOR COLOR COLOR COLOR COLOR COLOR COLOR COLOR COLOR
LED LED LED LED LED LED LED LED LED LED LED LED
2 4° 24 ° 24 ° 24 ° 24 ° 24 ° 2 4° 24° 2 4° 2 4° 24 ° 24 °
MOU SE KEY BOARD MOUSE KEY BOARD MOUSE KEY BOARD MOUSE KEY BOARD MOU SE KEY BOARD MOUSE KEY BOARD MOUSE KEY BOARD MOUSE KEY BOARD MOUSE KEY BOARD MOU SE KEY BOARD MOU SE KEY BOARD MOUSE KEY BOARD
REDUNDANT INDUSTRIIAL GRADE ETHERNET TCP7IP BUS
TO SHEET 2 OF 3
6 LARGE VIDE SCREEN

TURBINE CONTROL SYSTEM
WITH 80" DIAGONAL SIZE DEHGC,ARTS,ATT etc.
OWS-1 OWS-2 OWS-3 OWS-4 OWS-5
BOILER OPERATING STATION OPERATING STATION OPERATING STATION OPERATING STATION
OPERATOR STATION FOR BOILER FOR BOILER FOR STEAM FOR STEAM TURBINE OWS-6
(BMS/FSS) AUXILIARIES AUXILIARIES TURBINE AUXILIARIES AUXILIARIES FOR ELECTRICAL & BOP OWS-7 OWS-8 OPERATION & RECORDERS
CONTROL SWITCHES
FOR CRITICAL PARAMETERS
FOR SAFE SHUT DOWN. ON MGP/UCP
CCR
COLOR
LED
24 °
COLOR
LED
24 °
COLOR
LED
24°
COLOR
LED
2 4°
COLOR
LED
2 4°
COLOR
LED
24 °
COLOR
LED
24°
COLOR
LED
24°
ES ES ELECTRICAL/SWITCH
YARD ON MGP/UCP
PUSH BUTTON
STATIO N
GRAPHIC
DISPLAY
TURBINE CONTROL SYSTEM
CONTROLLER
MOUSE MOUSE MOUSE MOUSE MOU SE MOUSE MOUSE MOUSE
KEY BOARD KEY BOARD KEY BOARD KEY BOARD KEY BOARD KEY BOARD KEY BOARD KEY BOARD
A4 SIZE A4 SIZE A4 SIZE A4 SIZE A4 SIZE

LJ PRINTER COLOR LJ PRINTER B/W LJ PRINTER B/W LJ PRINTER B/W LJ PRINTER COLO R
KEY BOARD
REDUNDANT DATA HIGHWAY
SPEED = 100 MEGA BITS PER Sec.

MEDIUM = COXIAL CABLE/FO CABLE TO SHEET 2 OF 3
DATA HIGHWAY PROPRIETARY,

DETERMINISTIC IEEE802.4 TURBINE TRIP/ PRO TECTION, DEHC/ TSC/ATT & BMS/FSSS
REDUNDANT REDUNDANT TRIPLE TRIPLE

CPU-1 CPU-32 REDUNDANT REDUNDANT
CPU-1 CPU-3
CER REDUNDANT (64 NOS CPU) REDUNDANT REDUNDANT (9 NOS CPU) REDUNDANT
MULTILOOP/ MULTILOOP/ MULTILOOP/ MULTILOOP/
MULTIFUNCTION MULTIFUNCTION MULTIFUNCTION MULTIFUNCTION
CONTROLLER#1 CONTROLLER#32 CONTROLLER#1 CONTROLLER#3
REDUNDANT LOCAL BUS/CUBICLE BUS/

PERIPHERAL BUS/ I/O/ BUS
10MBPS
FOPH PANEL CWPH PANEL

ANALOG ANALOG ANALOG ANALOG BINARY BINARY
ANALOG WITH REDUNDANT WITH REDUNDANT ANALOG BINARY
INPUT BINARY BINARY INPUT BINARY INPUT OUTPUT INPUT OUTPUT
CARD OUTPUT CONTROLLER & CONTROLLER & CARD OUTPUT INPUT
INPUT OUTPUT OUTPUT CARD CARD CARD CARD TG REMOTE TG REMOTE SG REMOTE SG REMOTE
T/C RTD CARD CARD CARD I/O CARDS I/O CARDS T/C RTD CARD CARD CARD I/O PANEL I/O PANEL I/O PANEL I/O PANEL
4-20mA 4-20mA 4-20mA 4-20mA
#1 #2 #1 #2
FOR DAS, I/O FOR TMR CONFIGURATION FOR DAS, I/O

CARDS SHALL BE I/O CARDS SHALL BE CARDS SHALL BE (FOR MONITORING)
NON-REDUNDANTS TRIPPLE REDUNDANT NON-REDUNDANTS
FIFLD
HW SIGNALS
HW SIGNALS
HW SIGNALS
HW SIGNALS
TO DDCMIS TO DDCMIS TO DDCMIS ～～ TO DDCMIS

TO FLUE & TO TO TSI & P T/D P T/LT ANALYSERS
CEMS ANALYSER VMS TSI ←20mA
STEAM & WATER MCC/SWGR

CEMS OS OCAMMS OS SG,STG AND AUXILIARIES OCAMMS OS
ELECTRICAL GENERATOR & SWITCHYARD
ES = INDUSTRIAL GRADE MANAGED TYPE ETHERNET SWITCH
Devices usually included in the facility for large capacity plants are shown below:
Table 3-43 Range of control & instrumentation facilities
No. Control and Instrumentation Functions Abbreviations
1 Distributed Digital Control System DCS

2 Safety Instrumented System SIS
3 Annunciation System
4 Plant information and Management system PIMS
5 Electrical Distribution Monitoring System EDMS
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6 Supervisory Control Panels, Supervisory Desks and Equipment
Panels
7 Enterprises Resource Planning System ERP
8 Monitoring & Information System MMI
9 Performance Analysis Diagnosis and Optimization System PADO
10 Energy Management System EMS
11 Computerized Maintenance & Inventory Management System CMCMS
12 Plant Resource Manager PRM
13 PLC & Other Control Sub System
14 General Field and Measuring Instruments, Flow Elements
15 Environment Monitoring Systems
16 Continuous Emission Monitoring System CEMS
17 Steam and Water Analysis System SWAS
18 Power Supply & Utilities for control system UPS System & 24 V
DC system
19 Erection hardware & Cables
20 Control Valves with Actuators
21 Plant Security and Surveillance System
22 Material Supply, Ware Housing, Erection, Testing and
Commissioning
Tools, Tackle & Calibrating Instruments
Control Instrumentation Laboratory & Testing Equipment
23 Plant Simulations Coupling with DCS system
e-2) Outline of control and instrumentation facilities

(1) DCS: Distributed Control System
Distributed Control System (DCS) will be adopted to ensure safe operation and monitoring and effective
maintenance of the power plants.
With the increase in power demand in many countries in recent years, the requirement for coal-fired thermal
power plants get higher each year. The adoption of higher temperature and pressure steam conditions, the shift
from a drum boiler to once-through boiler, and intermediate load operation are among the requested items. The
ultrasuper critical coal-fired thermal power generation plant has more complex processes, the ability to follow
fluctuating load and startup and shutdown procedures compared to the conventional drum boiler, and the control
logic is also very complicated. The enhanced performance of DCS has contributed greatly for the realization stable
operation of ultrasuper critical plants with such high and complex requirements. It is critical for the stable plant
operation to select DCS with high reliability and excellent maintenance & long-term support system as explained
below.
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The controller is the core of the system’s reliability and has a redundant system by allocating two modules for
each function, with each module being fit with two MPUs (Micro-Processing Units), with aim to maintain the
availability factor for the entire system of 99.99999%. As the control bus of the entire system, the redundant
control bus with the transmission speed of 1 Gbps is installed to which the system components such as the
controller, operation monitoring device and maintenance & engineering device are directly connected. The devices
for boiler control, control of ancillary facilities such as denitration equipment and desulfurization equipment, and
the turbine governor control and protection, etc. are directly connected to the control bus, and can be operated on
the same control bus.
The CPU module, power source module and I/O module are mounted on a special 19-inch rack and each rack is
connected via internal bus modules. The CPU, power source and internal busses must have redundancy as a rule,
and the I/O modules can be single or redundant depending on the importance of the respective process. The I/O
module redundancy configuration must be applicable to all types of systems and the redundancy must be part of
the system function and not achieved with any application software or external wiring. With this, the system can
be configured very flexibly depending on the importance of the process.
The alarm & event analyses will be done for the entire system with the proper temporal sequence, by receiving
time synchronization signals with GPS. The SOE (Sequence of Event) that can display events with the msec
resolution capability is an important function for analysis in case of faults, and the events are controlled property
by collecting temporal data given by the DI modules via respective controller and displaying them with the proper
temporal sequence.
Coal-fired thermal power plants tend to be positioned as a main power source in various countries, and are
expected to operate stably over several decades. When designing the control system, it is critical to thoroughly
consider long-term guarantee and system continuity over an extended period of time, as well as the extended
function and integration function in case of plant expansion in the future. For the future revisions and maintenance,
it is necessary to introduce systems where only necessary equipment can be changed or upgraded (e.g. upgrading
operation monitoring software at the time of Windows OS upgrade and changing CPU modules for a better
computing power) so that the plant maintenance cost and the time needed for the revisions will be reduced.
(2) Outline of SIS (Safety Instrument System) of the Safety Integrity Level 3
For the purpose of preventing grave faults caused by accidental fire or failed large-scale auxiliary equipment in the
coal-fired thermal power generation, etc. the Safety Instrument System of the Safety Integrity Level (SIL) 3 will
be adopted for boiler protection and burner control. SIS must be introduced together with DCS described in (1)
above, connected to the same control bus as DCS, and operated as one integrated system. It displays data
fundamental to the plant operation such as SIS alarms, graphics and SOE from DCS’s operation monitoring device,
and realize efficient operation. The configuration of the CPU, power source and internal buses and I/O modules
are the same as DCS and doubling of every component must be considered. Whether the components are doubled
or not, SIL3 must be maintained and even if a doubled module becomes single due to replacement, etc.
temporarily, the system as a whole must comply with SIL3.
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(3) Outlines of field devices and analyzer
The differential pressure transmitter and pressure transmitter must be installed to measure flow rate and pressure
in the plant’s water supply & steam system, fuel system and air system, etc. For the sensors of the transmitters,
those that have excellent measurement precision and are mounted with silicon resonant sensors requiring no
calibration for a long time must be selected. Depending on the process for which the transmitter is installed, a
transmitter that has multi-sensing function and can display differential pressure and pressure must be adopted to
optimize the number of units to be installed.
For the measurement of O2 for fuel control, multiple zirconia type oxygen concentration meters must be installed
at the outlet of the economizer. To measure the total amount of controlled substances such as NOx、SOx、CO、
CO2, etc. in flue gas from the stacks, the Continuous Emission Monitoring System (CEMS) will be installed. The
infrared analyzer and O2 analyzer will be installed to measure the concentration level, temperature, pressure and
flow rate of controlled substances, perform forms control and transmit data to national agencies.
For the monitoring of water quality, the Steam and Water Analysis System (SWAS) must be installed to measure
pH, conductivity, silica concentration level, turbidity, etc. If denitration equipment is installed, the laser gas
analyzer must be installed at the outlet of the denitration equipment to measure ammonia.
e-3) Trend in recent years

(1) Field digital, integrated equipment control solution
In recent years, with an aim to optimize plant maintenance, the practice of integrated control of field equipment at
the central control room has become more common. In the practice, parameters and diagnosis data of the field
equipment are monitored using field digital signals such as HART (Highway Addressable Remote Transducer), FF
(Foundation Fieldbus) or Profibus. Conventionally, the state of equipment was checked one by one on site, and it
was hard to understand the real-time state of equipment and the creation of maintenance plans was a time
consuming task.
When replacing equipment, parameters had to be set by checking each item very carefully. With the introduction
of the integrated equipment control solution software (PRM: Plant Resource Manager), the field digital signals can
be controlled in an integrated manner, the state of the equipment can be understood from the central control room
without going to the site, and the preparation of the maintenance plans and equipment replacement can be done
smoothly. As for the configuration, PRM is directly connected to the control bus of DCS in 1.1, and the field
digital data is stored in the PC of PRM via the I/O module and CPU module. When designing the system for DCS
and SIS in (1) and (2), I/O module suitable for the type of field digital signals must be selected.
(2) Full-replica plant simulator

Since coal-fired thermal power plants are often positioned as the main power source, they must have reliable
facilities and functions, as well as operators who have ample skills and experience for the stable operation of the
plants. Many countries lack engineers who have sufficient techniques and experience operating supercritical
coal-fired thermal power plants, and the smooth operation of the plants might be difficult even after the plant
construction is completed. As described in (1) Distributed Control System above, the operation of supercritical
3-55
coal-fired thermal power plants is more sophisticated and complex compared to the conventional methods. The
operators must understand the dynamic characteristics of the complex processes, steps for load following, proper
procedure for startup and shutdown, measures for plant faults, etc. However, there are few opportunities for the
operators to experience the plant operation under the same conditions as the actual process.
Given this situation, the full-replica plant simulator is often introduced to train the operators in advance and to
bring their level to that required for the plant commercial operation. The overall configuration of the simulator
includes a plant model, operation monitoring equipment of DCS with virtual operation functions, and a simulator
setting device. Since the plant model is created by experienced engineers based on the dynamic characteristics of
the actual processes, and the control logic of DCS is connected to the plant model with dedicated gateway, the
training can be done in the environment which is almost the same as the actual operation. With the use of this plant
model based on the actual plant, the simulation of plant startup and shutdown, and scenario setting for different
requirements such as load increase are possible. Also, the state of processes during a given plant fault can be
simulated so that the operators can be trained to deal with plant faults properly during the actual plant operation.
The demand for the replica simulator for power plants is very high and the simulator has helped improve the
operators’ skills.
f) Environmental facilities
The environmental facilities of the Project will be adopted to mitigate environmental impacts from the flue gas
and include facilities for the treatment of NOX, SOX and particle matters. For flue gas treatment, the installation
of the electrostatic precipitator, flue-gas denitration equipment and flue gas desulfurization equipment will be
considered. For the flue gas desulfurization equipment, the use of lime-gypsum method is most common in
Japan; however, since there are too many uncertainties such as the suppliers of lime stones and buyers of the
byproduct gypsum, etc. the plan for now is to adopt to the sea water desulfurization system which has been
widely used overseas and has easy facility configuration and operation.
f-1) Electrostatic precipitator

In an electrostatic precipitator, usually the discharge electrode is the negative electrode and flat precipitating
electrode is positive electrode, and extra high-voltage DC is used for charging. When the electric field becomes
stronger, the gas near the discharge electrode is locally fractured generating corona discharge, and negative corona
is produced. In this state, the gas molecules are ionized and numerous negative and positive ions are created. The
positive ions are immediately neutralized at the discharge electrode and the negative ions and free electrons travel
to the precipitating electrode creating a curtain of negative ions.
When the gas containing particle matters enters this electric field, the particles are charged almost instantaneously
due to the collision of particles and ions and electrons as well as the collision of particles and thermalized ions,
and these charged particles travel due to the coulomb force and are captured by the precipitating electrode.
The corona discharge is a phenomenon that when voltage is applied between two electrodes placed in the air and
the voltage reaches a certain value which is determined based on the electrode structure, the short circuit occurs
3-56
between the electrodes and spark is seen. However, if a fine line or sharp edge exists on the electrode and the
electric filed concentration occurs in such area, local breakdown of insulation can occur in the area even if the
applied voltage is not that high. The phenomena such as these are called corona discharge. The electrostatic
precipitator removes particle matters in flue gas by steadily creating such corona discharge.
The characteristics of the electrostatic precipitator are that it is highly efficient since small particles can be
captured with the electrostatic precipitating action, it can save operating costs thanks to small pressure losses, and
it has a wide range of applications for dusts and gases regardless of properties such as size, temperature and
humidity.
Figure 3-18 Electrostatic precipitator
Source：Supplied by Mitsubishi Heavy Industries Mechatronics Systems, Ltd.
f-2-2) Flue-gas denitrification equipment

The denitrification methods are roughly divided into dry method and wet method. In this study, the plan is drawn
with the dry ammonia catalytic reduction method which is widely used in denitrification equipment. The
denitrification principle in the method is that flue gas is injected with ammonia and goes through the catalytic
layer, with which NOX is reduced to harmless nitrogen and steam. It is a very simple process and its chemical
equation is given below:
4NO + 4NH3 + O2 → 4N2 + 6H2O

NO + NO2 + 2NH3 → 2N2 + 3H2O
Figure 3-19 Chemical Process in the DeNOx equipment
Source：Supplied by MITSUBISHI HITACHI POWER SYSTEMS, LTD.

3-57
This reaction occurs via catalyst in the reactor. Since the higher the gas temperature during the reaction, the higher
the denitrification efficiency, the equipment is usually installed in the intermediate flue between the economizer
and air preheater. Most of the unreacted ammonia is broken down to nitrogen and water by the catalyst, but some
is emitted as ammonia. The characteristics of this method include: thanks to the easy process, the equipment is
highly reliable and its operation easy with very few troubles; there is no need to treat effluent thanks to the use of
the dry method; there is no need to reheat flue gas; the equipment offers high denitrification efficiency; and the
process produce few byproducts.
Figure 3-20 Selective Catalytic material
f-2-3) Flue-gas desulfurization equipment

The flue-gas desulfurization equipment use either wet method or dry method. However, most of those currently
installed and operated use the wet method. There are many types of wet desulfurization processes based on the
absorption agent and byproduct, including the lime-gypsum method, water magnesite/magnetite method and sea
water desulfurization method. In Japan, the lime-gypsum method among wet desulfurization methods is the
mainstream as lime stone used as the absorption agent is produced domestically in abundance and the byproduct
gypsum has a high commodity value as a suitable material for cement and gypsum board.
On the other hand, the sea water desulfurization method has a simple facility configuration using sea water and air,
without the need for any chemicals, produces no solid byproduct after absorption process, and the large amount of
sea water used in the condenser for cooling can be used as the absorption agent. For this method, the reliable
facility can be created with less investment and operation cost. For these reasons, the plan was made with the sea
water desulfurization method since there are many uncertainties if the lime-gypsum method is to be adopted, such
as the source of lime stones and buyers for gypsum.
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Table 3-44 The comparison between major desulfurization methods
Seawater desulfurization Limestone/gypsum desulfurization
Process schema
Desulfurization Approx. 90～98％ Approx. 90～98％

efficiency
Absorber Seawater-oriented bicarbonate ion Limestone-oriented bicarbonate ion
(HCO3-) (HCO3-)
Byproduct None Gypsum
Necessary Aeration equipment Limestone/gypsum desulfurizing apparatus
auxiliary
equipment
The sea water desulfurization method takes advantage of the fact that sea water is naturally alkaline, and causes
the gas-liquid contact between flue gas and sea water so that SO2 in flue gas is absorbed by sea water. The treated
gas is discharged in the air. The stabilization of the reaction process is achieved by oxidizing sulfurous acid (SO3)
into sulfuric acid (SO4 ) through the gas-liquid contact between sea water and flue gas; however SO3 is not
completely oxidized just with the gas-liquid contact of sea water and flue gas, and as a result, effluent will contain
a large amount of SO3 and hydrogen ions generated cause the pH value to go down.
SO2 + H2O → HSO3- + H+ ・・・① (absorption in the absorption tower)
Due to these reasons, more sea water is added to the effluent in the aerating tank to raise the pH value
(neutralization) and the oxidization of SO3 is promoted by further aeration, in order to reduce the chemical oxygen
demand (COD) to below the predetermined value and raise the dissolved oxygen (DO) to above the predetermined
value.
2HSO3- + O2 → 2SO42- + 2H+ ・・・② (oxidization through aeration)

+ -
H + HCO3 → CO2 + H2O ・・・③ (neutralization of H+ generated and HCO3- from the added sea water)
g) Water facilities for the power plants

Water used in the plants is planned to be river water taken from the Quan Lo-Phung Hiep water way as a rule.
However, since the amount of water obtainable during the dry season is uncertain and the quality of the river water
is not stable, the plan to use river water is supplemented with the plan to introduce seawater desalination units.
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g-1) Amount of water needed for the plants
For the Project, multiple plans are considered in terms of output and facility configuration; namely, two
supercritical plants with 600MW each, two ultrasuper critical plants with 600MW each, and one ultrasuper critical
plant with 1,000MW. In this section, the amount of necessary water was estimated based on the plan with two
600MW supercritical plants since the water use is likely to be the greatest in this plan. The result revealed that the
amount of water required during the construction period is about 2,500m3/day and that after the start of operation
about 6,000m3/day.
Figure 3-21 The example of water treatment process
Demineralizer
（From Raw Water Supply） Clarifier/Filtration （RO＋MB）
Raw Water Tank Demi.Water Tank （To Power Plant）

Clarified Water Tank ・
・
（To effluent treatment）（To effluent treatment）・
・（To Power Plant）
・
・
Table 3-45 Estimated amount of raw water required for two 600MW SC plants
Assumerd usage Required water（m3/day）
Filtered water Purified Boiler make-up water 949
water for Bearing cooling water 13
plant Reclaimed water for condensate 187
demineralizer
Other 20
Demineralizer discharge 542
Purified water use: subtotal 1,711
Bottom ash treatmenet make-up water 614
FGD make-up water 40
Oil tank cooling water 120
Water for berth operation 210
Chemical cleaning water 192
Waste treatment water 360
Spaying water for coal storage yard 320
Water for coal ash slury 170
Drinking water 70
Water for landscape gardening 100
General usage 11
Subtotal 3,918
Clarifier discharge 986
Raw water margin Approx. 20％
3-60
Required raw water 6,000
g-2) Outline of the seawater desalination unit

There are two methods of large-capacity seawater desalination: the RO system using reverse osmosis and the
MED (multi-effect distillation)/MSF (multi-stage flash distillation) system using the evaporation method.
Table 3-46 The process outline of desalination method

Desalination method Principle Characteristics
Evaporation Sea water is heated to the point of With large economy of scale, it is suitable for
evaporation and the generated steam is oil-producing countries since it uses a large
cooled down to obtain fresh water amount of energy.
Reverse osmosis Seawater is poured into one side of a With small power consumption, it is
container divided with a semipermeable energy-saving technology. When desalinating
membrane that allows water to pass brine water with low salt content, the
through but not salt. By applying pressure operation cost can be reduced.
to seawater, only water passes through the
membrane.
(Outline of the evaporation method)

Evaporation has been used since the mid-20th Century and the MSF technique is the mainstream at this point. MSF
has higher efficiency and can handle larger capacity than MED, but also has higher facility investment cost and
operation cost as the water must be kept at 110 inside the facility and the facility tends to corrode sooner. On the
other hand, MED consists of multiple evaporation chambers, and steam which is the source of heat enters the first
evaporation chamber. Steam flows inside the heat exchanger pipe, and heat exchange occurs when sea water flows
down outside of the heat exchanger pipe. The supplied steam is recovered as steam condensate, and part of sea
water evaporates and supply heat to the next evaporation chamber. By repeating this process until sea water and
cooling water have the same temperature in the final evaporation chamber, and thereby fresh water is obtained.
Figure 3-22 The process flow of Multi-stage flash distillation
Source：Hitachi Zosen Corporation, Brochure “Desalination Plant Business”
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Figure 3-23 The process flow of Multi-Effect Distillation
Source：Hitachi Zosen Corporation, Brochure “Desalination Plant Business”
(Reverse osmosis method)

This method applies pressure to sea water and forces it to go through the reverse osmosis membrane filter in order to obtain fresh
water. Sea water goes through multiple filters for the removal of seaweed and other foreign matter with the size of 20μm or larger
before being fed into the facility. The sea water then goes through ion change by cationic resin to remove Ca and Mg, and through a
filter to remove foreign matter of 5μm or larger, and is pressurized to the maximum of 70 atm and sent to the RO membrane filter.
As a result, 30 – 50% of the filtered water sent to the RO system is obtained as fresh water.
Figure 3-24 The process flow of Reverse Osmosis method
Source：Hitachi Zosen Corporation, Brochure “Desalination Plant”
h) Coal loading facility

As the Project assumes the use of imported coal for the operation of coal-fired thermal power plants, the facility
was planned assuming the coal procurement via marine transportation based on the 10,000DWT ship plan and
30,000DWT ship plan. When considering the facility, an assumption was made that BAU coal with low calorific
value will be used, for which stable procurement is anticipated, and that 600MW-class supercritical plants with
high coal consumption rate will be adopted.
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Table 3-47 the estimation of annual coal consumption
Estimated plant scale 600MW-class × 2 600MW-class × 2 1,000MW-class × 1
(for 1 phase ) SC plants USC plants USC plant
Higher heating value（HHV） 41.08 % 41.88 % 41.96 %
Plant availability 75 % (Aprox. 6,500hours)
Coal use per BAU coal 3,562,618 t 3,494,564 t 2,642,350 t
year Targinsky coal 2,816,849 t 2,763,041 t 2,089,222 t
Moolarben coal 2,978,543 t 2,921,647 t 2,209,149 t
Solntsevsky coal 3,536,942 t 3,469,379 t 2,623,306 t
h-1) Number of coal receiving berths and unloading capacity required
Table 3-48 The No of coal shipping berth and the capacity of ship unloadind equipments
Port scale 30,000 DWT scale 10,000 DWT scale

Coal use per year 3,560,000 t×3phases 3,560,000 t×3phases
Coal ship Capacity 30,000 DWT 10,000 DWT
Carry efficiency 90 % 90 %
No. of Annual shipments About 131 times About 393 times
Unloader capacity 850 t/h×2units/berth
Unloader handling efficiency 75 % 75 %
Actual handling time About 21 hours/day About 7 hours/day
Handling peparation time 2.0hours 2.0 hours
Total handling time About 23 hours/day About 9 hours/day
Metro correction factor 0.79 0.79
Berth occupancy rate Around 50% Around 58%
Necessary number of berths 3berths /3phases 3 berths /3phases
h-2) Main coal unloading facilities

The capacity of the unloader was planned so that the berth occupancy ratio is about 50%, and the continuous
bucket elevator type that has small peak rate fluctuation and can reduce the capacity of the subsequent facilities
was assumed. The installation of two unloaders per berth with the unloading efficiency of 0.75 was used in the
planning in case unloading stops due to facility troubles. Two receiving conveyors are planned with the capacity of
two unloaders each. The stacker facility was planned to have the same capacity as the receiving conveyer. Coal
blending is assumed for the reclaimer facility which was planned to be 2 units /phase and to have the capacity
sufficient for one unit to feed the required amount of coal for a day for Phase 1. Coal blending is assumed for the
discharge conveyer. It is planned to have two discharge conveyors per phase, and one unit is to have the capacity
equivalent to the capacity of one reclaimer × peak rate (=1.1).
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Table 3-49 The estimation of Coal Handling Facilities
Coal unloading facility for 1phase Remarks
Unloader
Type Continuous bucket eleator type
Number of units 2units/1berth
Capacity 850t/h×2units/phase To be 50%×2units.
Receiving conveyor 1,900t/h×2 lines /phase To be a peak rate of 1.1.
Stacker facility
Type Continuous bucket eleator type
Number of units 2units/1phase
Capacity 1,900t/h /unit To be equivalent to receiving
conbeyor capacity.
Reclaimer facility
Type Traveling turning boom hoisting bucket wheel
type
Number of units 2units/1phase To be planned with 2 units for coal
blending operation.
Capacity Required amount of coal for a day for phase 1
Discharge conveyor 200% capacity conveyor : 1 line/1plant
Figure 3-25 View of each coal handling equipment
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i) Civil engineering facilities
i-1) Power plant site
i-1-1) Establishing the site elevation
The site elevationof the premise was established based on Vietnam’s guideline No.14TCN 130-2002 “Guide line
for design of sea dykes.” It stipulates that the site elevation is to be based on the highest sea level with a return
period of 100 years. The highest sea level with a return period of 100 years is +2.42m, and by adding an allowance
of 0.5m, elevation of water surface of 0.45m due to climate change, and water surface rise of 0.7m due to storms,
the final figure of +4.07m was obtained.
There is Bac Lieu’s eastern sea dyke with the length of 54km and crown width of 6.5m, stretching from the
boundary of Soc Trang Province which is in the east of the planned site to Ganh Hao town, Dong Hai district in
Bac Lieu Province. The current height is about 3.5m. Based on the plan of the Vietnamese government, the
reinforcement of the eastern sea dyke and the improvement of the southern sea dyke of Bac Lieu Province are
planned to address the rising sea level caused by global climate change. The planned elevation of new sea dykes is
4.0m.
In Japan, a site elevation is determined by comparing the necessary height which is based on the layout of the
main equipment and structures of the power plant and the site elevation which is obtained by adding the allowance
height to the highest sea level estimated with existing data. When the elevation is obtained from the past highest
sea level, the common practice is to add the allowance height of 1 to 2m to the previous highest sea level. Many
power plants have the premise elevation of about 4m. By taking into considerations these facts, the site elevation
for the project is selected to be +4.1m.
i-1-2) Type of seawalls

The seawalls along the coastline and those inland are to have different structures considering the strength and
functions needed for the structure. 1) The structure along the coastline is to be the rock-fill type. The core will be
filled with the core material with diameter of 10-40cm, and the section between the core and the surface layer will
be a layer of rock with diameter of 60-80cm. The surface part of the slope will be cladded with rocks and the
lower part will have a ballast layer (gravels). The ground bearing capacity of the seawalls foundation is small due
to its geological characteristics, and the foundation must be reinforced. As the reinforcement methods, the sand
pile and the cement deep mixing method (CDM), etc. are considered. 2) The seawalls structures inland will be
earth-fill type. The slope will be stone mansonry with 30cm thickness. The foundation of seawalls will be
improved with sand pile against compressive and shear stresses. In the detailed design stage, the stability analysis
of the seawalls must be done.
i-2) Water intake and discharge outlet facilities

i-2-1) Water intake facilities
In the plan for the power plants, two alternatives are considered based on the coal transportation method; namely,
the 30,000DWT coal ship alternative in which coal ships come directly from outer sea, and 10,000DWT coal ship
alternative in which coal is received from domestic vessels via a coal center planned in Duyen Hai in Tra Vinh
Province. Therefore, the outline of the water intake facilities is shown in Table. 3-50 for respective alternative.
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Table 3-50 Outline of water intake facilities
30,000DWT coal ship 10,000DWT coal ship
Cooling water supply For cooling water, sea water is Cooling water is taken from the Cai
method taken from sea area inside the Cung water way which is to be
breakwaters with surface water expanded, with surface water intake
intake method. method.
Water intake channel Open channel with the length of Box culver with the length of about
structure about 3.0km and box culver with 3.0km
the length of about 2.2km
For cooling water, a large amount of relatively low-temperature water must be supplied steadily without
significant temperature change throughout the year and the day. The area being located in the Mekong Delta
region with the shoal, the deep water intake is not the best option in terms of cost and facility operation since the
distance between the intake to the power plants will be great. Thus the surface water intake method will be
adopted. The intake channel will be an open channel and box culvert. The required cooling water was estimated to
be 55.3m3/s for one phase of 1,200MW, based on the average sea water temperature in the area. For all three
phases, about 160 m3/s of water will be required. The type of foundation and ground improvement methods for
water channel will be examined in the detailed design stage.
i-2-2) Cooling water discharge outlet facility

The outline of the two plans on outlet facility is shown in Table 3－51.
Table 3-51 Outline of the discharge outlet facilities

Cooling water discharge Discharge to the outside of the Discharge to the outside of the
method breakwater using submerged breakwater using submerged
discharge method discharge method
Discharge channel structure Install steel pipes to the water depth Install steel pipes to the water depth
of about 5m of about 5m
The discharge methods are broadly divided into surface discharge and submerged discharge. The submerged
discharge is divided into submerged discharge from the seawall and offshore submerged discharge. The area has a
shoal and it is hard to ensure enough water depth; thus the area is not suitable for submerged discharge directly
from the seawall. Therefore, the water intake and discharge outlet will be separated by breakwater.
Regarding the discharge temperature, in the case of surface discharge, the temperature rise of about 8 was
3
estimated with the maximum water use of 166m /s; thus if the maximum sea water temperature is assumed to be
29 , the discharge temperature will be roughly 37 . The Vietnamese effluent regulations require the discharge
temperature to be 40 or less. The calculated temperature meets the standard; however since the impact that
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thermal effluent has on the environment is great, submerged discharge is assumed at this stage. It is necessary to
estimate the diffusion of thermal effluent in the detailed design stage. The types and foundation and methods of
ground improvement for outlet channel will also be examined.
i-3) Breakwater
The outline of the two plans for the breakwaters is shown in Table 3-52.
Table 3-52 Breakwater outline

Breakwater structure and scale Two breakwaters about 3,000m Two breakwaters about 2,750m long
long
Breakwater direction Approx. north to south Approx. north to south
The main functions of breakwaters are to secure the calm section of the sea for cooling water intaske, loading and
unloading fuel, equipment and materials. The level of waves height needed for loading and unloading is 0.5m -
1.0m or less for regular loading, and 0.5 m or less for oil and coal. The points below must be considered when
deciding on the arrangement of the breakwaters.
① The entry to the port must avoid the most frequent and strong wave direction to minimize invading waves.
The axis of the breakwater must be in the direction to shield the most frequent and strong waves.
② Measures against reflected waves, convergence and secondary undulation from the waves that entered the
port.
③ The port entrance should have enough width for ships to travel safely and placed to facilitate easy entry and
departure.
Based on the records taken at the Bac Lieu station, the dominant wave direction is east and southwest. The
breakwaters are expected to become an effective shield and the port entrance is not open to the directions of most
frequent or strong waves. The type of breakwaters planned is rubble mound breakwater since they can be built on
weak ground and the construction facilities are simple and work is easy. The length of the route a ship requires to
berth or that from the port entrance to the mooring berth must consider the stopping distance of ships. The
structure must be designed with external forces and stability computation based on the design waves in the
detailed design.
Figure 3-26 Typical section of rubble mound breakwater

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i-4) Berth for receiving coal ships
The outline of the two plans for the berth is shown in Table. 3-53.
Table 3-53 Outline of specifications for the berth for receiving coal ships
No. of berths 3 3
Berth length 748m 630m(210m×3)
Berth depth 12m 8.8m
The length and depth of the berth are established based on Vietnam’s standard port technology.
i-5) Approach channel and basin

i-5-1) Approach channel
The outline of the two plans on the approach channel is shown in Table. 3-54.
Table 3-54 Outline of the approach channel

Ship length 176m 129m
Approach channel width 90m 71m
Approach channel water depth 12.0m 8.8m
The width and depth of approach channel are established based on Vietnam’s standard port technology. As for the
approach channel width, a single approach channel is assumed since the frequency of ships passing in the dredged
channel is likely to be low.
i-5-2) Basin
The outline of the two plans for the basin is shown in Table. 3-55.
Table 3-55 Outline of the basin

Area Circle with diameter of 510m Circle with diameter of 195m
(approx. 204,000 ㎡) (approx. 30,000 ㎡)
Water depth 12.0m 8.8m
The area and water depth of the basin is designed based on Vietnam’s standard port technology.
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i-6) Dredging
The amount to be dredged was calculated based on the approach channel and basin estimated above, for the
30,000DWT plan and the 10,000DWT plan. The results are shown in Table. 3-56.
Table 3-56 Dredging amount and approach channel length
Dredging amount during construction 8.1 million ㎥ 4.6 million ㎥
(Approach channel and turning basin)
Approach channel length 12km 6㎞
The necessary water depth for approach channel and basin calculated based on Vietnam’s standard port technology
is 12.0m and 8.8m, respectively. The length of the approach channel for the 30,000DWT coal ship alternative was
determined to be 12km, which is the distance to ensure the water depth of 12m as confirmed with depth contours
of the marine chart. The length of the approach channel for the 10,000DWT coal ship plan will be 6km in order to
have the water depth of 9m. The dredging amount was roughly calculated by assuming that the gradient of the sea
bottom is uniform and using the average end area method based on the cross-section estimated from the plot
plan. The calculation produced about 8,100,000 m3 for the 30,000DWT coal ship plan and about 4,600,000 m3 for
the 10,000DWT coal ship plan. The approach channel and basin will have a significant impact on the fuel
transportation plan, and they must be examined thoroughly including bathymetry.
Figure 3-27 Dredging facilities
Suction dredger Sand discharge pipe
Grab dredger Barge carrying
Source: Construction quantity calculation manual for port ・ fish port(draft) Ministry of Land,
Infrastructure, Transport and Tourism Hokkaido Regional Development Bureau
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i-7) Coal storage yard
i-7-1) Estimated coal consumption per day
The average coal consumption per day for Phase 1 is estimated as follows:
Table 3-57 The estimation of daily coal consumption

Assumed plant scale 600MW-class × 2 600MW-class × 2 1,000MW-class × 1
SC plants USC plants USC plant
Plant availability 75 % (approx. 6,500 hours)
Average coal BAU coal 9,760 t 9,574 t 7,239 t
consumption Targinsky coal 7,717 t 7,570 t 5,724 t
per day Moolarben coal 8,160 t 8,004 t 6,052 t
Solntsevsky coal 9,690 t 9,505 t 7,187 t
i-7-2) Assumed coal pile size

The coal storage yard for Phase 1 will be planned to have a total of three piles, with one big pile in the middle and
a medium-sized pile on both sides of it. The pile sizes are assumed as below:
Table 3-58 The dimesional estimation of coal stock pile

Medium pile Large pile
Coal bulk specific Approx. 0.8 t/m3
gravity
Number of piles 2 piles 1 pile
Pile width W W1=40 m W2=80 m
Pile-to-pile W0=16 m
clearance W0
Pile height H 15 m
Pile repose angleθ 40°
Pile length L Approx. 200 m
Pile cubic volume 66,371 m3 × 2 piles 186,371 m3 × 1 pile
Pile shape drawing

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i-7-3) Amount of coal to be stored (expressed in the number of days)
Table 3-59 The estimation of coal stock yard capacity

Assumed plant scale 600MW-class × 2 600MW-class × 2 1,000MW-class × 1
SC plant USC plant USC plant
Coal bulk specific gravity Approx. 0.8 t/m3
Coal storage BAU coal 26.2 days 26.7 days 35.3 days
days Targinsky coal 33.1 days 33.7 days 44.6 days
Moolarben coal 31.3 days 31.9 days 42.2 days
Solntsevsky coal 26.3 days 26.9 days 35.5 days
Average coal 29.2 days 29.8 days 39.4 days
storage days
Coal storage capacity for one phase 1: (66,371m3×2＋186,371m3)×0.8＝255,290t
i-7-4) Miscellaneous
Coal is assumed to be stored in the open and the pile height is to be 15m. Since the site has weak ground, ground
improvement and ground stabilization study will be examined in the detailed design stage. The installation of wind
shield nets will be considered for environmental protection.
Figure 3-28 Wind shield net diagram
Wind shield net

Reclaimer foundation
Stucker foundation
Coal storage yard
Land fill Sea wall
Ground line
i-8) Ash disposal yard

i-8-1) Service life of ash disposal yard
In this power plant area, about 150ha will be secured for ash disposal for all three phases, with the dyke height
of 7m (150ha×7m＝approx. 10,500,000m3)
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Table 3-60 The estimation of ash yard capacity
Assumed plant scale 600MW-class ×2 600MW-class×2 1,000MW-class×1
SC plants USC plants USC plant
for 3 phases for 3 phases for 3 phases
Plant availability 75 % (approx. 6,500 hours)
Coal ash slury proportaion 1.1
Useful life of BAU coal 21.4 year 21.8 year 28.9 year
ash dump Targinsky coal 14.4 year 14.7 year 19.4 year
Moolarben coal 8.3 year 8.4 year 11.2 year
Solntsevsky coal 9.9 year 10.1 year 13.3 year
Average years 13.5 year 13.8 year 18.2 year
In each plan, the area for ash disposal lasting 13 – 18 years is secured; therefore, if the number of years of
operation is assumed to be 25 years, about 30 – 50% of coal ash must be utilized.
i-8-2) Effective utilization of coal ash

Coal has 5 – 30% ash content and coal-fired thermal power plants produce a large amount of coal ash. With an
aim for effective utilization of resources, Japan has worked to expand the technology for utilizing coal ash. Here,
the cases of coal ash utilization are introduced for the fields shown below:
Figure 3-29 Domestic filed of coal ash effective utilization
Cement Cement raw material for the production
Cement admixture
Fly ash cement
Raw concrete admixture
Architecture Lightweight concrete aggregate
Artificial lightweight aggregate
Tile , brick , ceramics
Concrete product
Civil works Asphalt filler

Roadbed material
Subgrade material
Filling material
Filler (for coal mine)
Grout
Agriculture and Fertilizer

Fisheries
Compost
Artificial fish reef
FCC concrete
Chemical industry Flue gas desulfurization material
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As for coal ash properties, the ratio of fly ash and clinker ash (bottom ash) in generated coal ash is about 9:1. The
shape of coal ash tends to be round for ash with a low melting point and indefinite shape for ash with a high
melting point. The average particle size of fly ash from pulverized coal combustion is about 25μm, and as a
ground material, it is coarser than clay and finer than fine-grained sand, and is similar to silt. As for the chemical
composition, it contains silica (SiO2) and alumina (Al2O3) accounting for about 70 to 80%, and is close to
mountain soil. Ash also contains small amounts of ferric oxide (Fe2O3), magnesium oxide (Mg0) and calcium
oxide (CaO).
Fly ash has been put to practical use as cement admixture in Japan in the early 1950s, and since the standard has
been set for fly ash in 1958 and for fly ash cement in 1960, fly ash has been used widely in concrete for general
structures. Also starting in 1978, ash has been used as an alternative to clay in cement and as of 2003, 70.1% of all
ash that was utilized was used for this purpose. Other uses include utilization as a material for roads, ground
improvement and land reclamation in the civil engineering field, and as artificial lightweight aggregate in the
construction field. In agriculture, forestry and fisheries, it is used as fertilizer and soil amendment.
i-8-3) Ash disposal methods and environmental measures

In order to minimize the impact on the air and water environment, high concentration slurry disposal system is to
be used for ash disposal. As a measure to protect the environment against heavy metals and chemicals contained in
coal ash, the creation of an impervious layer at the bottom of the ash disposal yard is planned. For this purpose, a
polyethylene layer (geomembran) or asphalt concrete layer are considered. The coefficient of permeability for the
ground is ensured to be 105cm/s or less, which is considered standard. In future examinations, it will be critical to
clear Vietnamese standards and to have sufficient discussions with relevant organizations. Aside from seepage
control work, effluent treatment facilities must be considered in order to comply with effluent standards.
i-8-4) Miscellaneous
For the ash disposal yard, a 7m-dyke is planned to be constructed for ash storage. As the site has weak ground, the
stability computation regarding ground improvement, stability analysis will be conducted in detailed design in the
future to determine the structural parameters.
i-9) Foundation for main structures

The concept regarding the foundation for the structures is explained in this section. Since the ground strength of
the power plant premises is small, it must be strengthened and reinforced concrete foundation or other measures
for foundation shall be used. The foundation will be designed based on the structure and load of the building and
will be steel pile, bored precast pile driving pile or cast-in-place pile. For the foundation for the heavy load, pile
must be long enough to reach the load bearing layer. For the foundation structure of the medium to heavy load will
be the PC pile with the length to reach the load bearing layer. For light to medium load, the standard RC pile will
be used. For the ground treatment for the channel, box culvert, tanks, etc., the adoption of CDM or drainage
consolidation method will be assumed. If the light load is expected for the structure that will be built on the
improved ground, the spread foundation will be adopted. It will be necessary to conduct additional boring and
various surveys to confirm the ground properties, check the ground strength and narrow down the type, length and
radius of the pile as well as the ground improvement methods in the detailed design stage. Countermeasures for
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the consolidation settlement of the ground must be considered.
i-10) Stack
The stack structure will be made of steel. The basic height of 200m will be adopted, which is also adopted by
many large-scale coal-fired thermal power plants in Japan. The final height and radius will be determined after
examining the diffusion phenomena. As for the foundation, pile type, length and radius will be designed based on
the ground survey result.
3) The content of the proposed Project

The Project plans to build supercritical or ultrasuper critical coal-fired thermal power plants that use imported coal
and ease the power supply and demand situation in Vietnam, supply power to the southern region of Vietnam, and
contribute to the improvement of energy security for the entire Vietnam through the power plants.
a) Planned power plant site

The planned power plant site is located in Cai Cung which is between Dong Hai district and Hoa Binh district in
Bac Lieu Province, and is 280km southwest of Ho Chi Minh City. The area is in the Mekong Delta region and
faces shoals, and has mangrove forests near the coast.
There are two options for the coal procurement for the Project; namely, procurement with the use of 30,000DWT
bulk ships (30,000DWT plan) and the procurement with 10,000DWT bulk ships (10,000DWT plan). The required
scale for port facilities for coal receiving is different for each plan. In the 30,000DWT plan, the area needed for the
planned power plant site includes the area for power generation facilities of about 482ha and the area for
coal-receiving port facilities of about 620ha. On the other hand, the 10,000DWT plan needs the area for power
generation facilities of about 499ha and that for port facilities for coal receiving of about 360ha.
b) Outline of main power plant plans

The main power plant plans for the Project are as follows:
Table 3-61 The design outline of this project

Fuel procurement Coal imported from foreign countries (Indonesia, Australia, Russia, etc.) via marine
transportation
Transmission line
Connected to the 500kV system or to the 500kV and 220kV systems
connection
Plant 600MW-class SC plant 600MW-class USC plant 1,000MW-class USC plant
configuration × 2 units × 3 phases × 2units × 3 phases × 1 unit × 3 phases
Steam condition Main steam：24.1MpaA, 566 Main steam：24.1MpaA, 593
Reheat steam temp.：566 Reheat steam temp.：593
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Plant efficiency
41.08 % 41.88 % 41.96 %
(HHV, Gross)
Plant cooling
Use sea water from nearby sea
water
Boiler type
Supercritical pressure variable pressure operation once-through boiler: radiant reheat type
Turbine type Tandem compound 4

Tandem compound 3 casing 4 flow exhaust casing 4 flow exhaust
Reheat-regenerative type Reheat-regenerative
type
4) Issues in adopting suggested technology and systems and their solutions

The issues for the implementation of the Project revealed in this study are as follows:
a) Coal procurement method

There are several plans for procuring imported coal, but there are still too many uncertainties. Therefore,
more information must be collected regarding the sources of coal, procurement cost, scale and schedule of
the coal transfer stations in Vietnam, etc.
b) Offshore engineering work for the port facility development

The Project assumes marine transportation for the coal procurement and port facilities must be constructed
on the planned power plant site in order to receive coal. However, the area is in the Mekong Delta region
and has shoals, requiring large amount of offshore engineering work. It will affect the power plant
development since more land and more dredging work will be needed, and the construction period will be
longer and cost will be significantly higher. The measures to ease the impact will be needed, such as the
early start of the civil engineering work and optimizing the scale of the port and harbor area.
c) Method of procuring water for plant use

It is necessary to establish a way to procure the entire amount of water needed for plant use in a stable
manner in the rainy season and in the dry season. If surface water is to be taken from the water way, the
design of the water intake facilities such as the potential expansion of the water way, the amount of water
required and other matters must be examined thoroughly. If the introduction of seawater desalination units
is to be considered, an evaluation must be done in terms of facility investment such as the effect on the
generation cost. Additionally, water intake in the area will require an approval by the local people’s
committee and if the water way expansion work is required, such work will likely be implemented by the
people’s committee; thus the coordination among the stakeholders will be needed.
d) Transmission line development schedule

As for the transmission line construction in Vietnam, the construction plan starts as a necessary
infrastructure after the power plant construction plan is approved. Based on the progress of many projects,
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the development is delayed in many projects at this point; thus the transmission line development plan
along with the power plant development schedule must be checked to ensure that the power plants can start
operation without delay. The information must also be gathered on the owner and the financing for the
construction of such transmission facilities.
e) Protection of mangrove forests around the planned power plant site

Mangrove forests exist on and around the planned power plant side, and if imported coal is procured
through marine transportation, the forests could not be completely excluded from development. However,
more consideration for the power plant layout is needed to reduce the area subject to development as well
as environmental load. Also, the feasibility of additional measures such as planting mangroves in other
areas must be examined.
f) Development of access road, etc. to the planned power plant site

Even though the National Highway 1 exists as a major highway near the planned plant site, the access roads
from the National Highway 1 to the planned plant site are in poor condition. Therefore, roads and bridges to
the power plants must be planned by considering their strength to facilitate the transportation of heavy
loads.
g) Lack of experience in O&M for SC and USC plants such as once-through boiler
At this point, the supercritical plants are planned to be constructed but not actually operated. Therefore,
situation of the earlier projects must be monitored, and training by Japanese engineers, inviting O&M
advisors, etc. must be considered as necessary.
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Chapter 4 Evaluation of Environmental and Social
Impacts
(1) Analysis of Current Environmental and Social Situation
1) Site location
The planned construction site of Bac Lieu power plants (Bac Lieu PGC) is on the right side of the Cai Cung
Canal that is between the Long Dien Dong settlement in the Dong Hai district and Vinh Thinh settlement in the
Hoa Binh district in the coastal area of Bac Lieu Province (Cai Cung Canal is one of the large sewer lines of
Bac Liew Province, which flow into the sea). There are settlements along the canal and on the northern side.
Positional coordinates for the base point of the boundary of the premises: southeastern end: X: 563568, Y: 1010496
(Geodetic datum: WGS84）
Boundary of the site

・Southern boundary: about 3km along the Bac Lieu sea levee
・ Eastern boundary: about 1.5km along Cai Cung Canal
(The road construction along the canal is planned for the future)
・Northern and western boundary: almost parallel to Bac Lieu sea levee and Cai Cung Canal
Figure 4-1 Power plant location
Bac Lieu City
Vinh Thinh settlement

Long Dien Dong settlement
Cai Cung Canal

Planned site－Cai Cung
Source: prepared by Study Group based on Google
4-1
2) Natural environment
a) Weather condition
The long-term weather data for areas in and around the plant site have been obtained at posts below:
Table 4-1 List of weather measurement posts in and around the Project area.
Measurement Years for which data

No. Types of data measured Category
posts are accumulated
Rainfall amount, water level,

Hydrologic gauging
1 Ganh Hao 1979-2013 river water temperature, and
station
saline concentration
Hydrologic gauging
2 Con Dao 1979-2013 Water level and waves
station
Air temperature, amount of
3 Bac Lieu 1980-2013 evaporation, rainfall amount, Meteorological station
wind and humidity
Rainfall amount Hydrometeorology
4 Gia Rai 1978-2013
station
The statistics of air temperature, humidity and rainfall amount measured at the Bac Lieu station between 1980
and 2013 are shown in the tables below.
The southern region is high in humidity and amount of sunlight thanks to its equatorial tropical monsoonal
climate. Unlike northern and central regions, it is hot throughout the year. The climate in the southern region is
divided into rainy season (May to Nov.) and dry season (Dec. to Apr.).
Table 4-2 Air temperature at the Bac Lieu station (1980-2013) (°C)
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
Average 25.3 26.0 27.3 28.5 28.3 27.5 27.1 26.9 26.7 26.6 26.5 25.5 26.8
High 34.3 33.3 34.6 36.7 36.5 35.7 33.6 33.7 34.2 33.3 32.6 32.5 36.7
Low 17.1 18.3 18.8 21.4 22.0 21.7 21.4 21.4 21.8 21.7 19.0 16.4 16.4
Table 4-3 Humidity at the Bac Lieu station (1980-2013) (%)
Average 81 80 79 79 84 86 87 88 89 89 87 84 84
Low 32 36 44 44 47 50 55 48 50 52 46 46 32
4-2
Table 4-4 Rainfall amount at the Bac Lieu station (1980-2013) (mm)
Rainfall 4.8 3.7 15.5 57.6 203.3 281.2 273.3 277.5 308.2 306.4 173.3 42.6 1947
Rainy
2 1 2 5 17 21 22 22 23 22 14 6 157
days
The statistics of the storms that originated between 1995 and 2005 in the East China Sea and Vietnam’s waters
are shown in the tables below. Many storms occur between October and the middle of December; however, they
rarely make landfall in the area south of the Mekong Delta.
Figure 4-2 Statistics of storms occurred on East sea and sea area of Vietnam (1995-2005)
The direction of the prevailing wind is east and southwest. Oftentimes, the direction of the prevailing wind
during the rainy season is southwest and east during the dry season.
Table 4-5 Annual wind direction and speed at the Bac Lieu station (1980-2013)
Probability (%) 22.0 5.0 10.6 20.2 6.7 6.9 15.2 8.6 4.9
Average wind speed

2.3 2.9 3.1 2.8 2.6 2.4 2.7 2.7
(m/s)
4-3
Table 4-6 Wind direction and speed during the rainy season at the Bac Lieu station (1980-2013)
Probability (%) 24.8 4.3 6.7 6.1 3.3 8.6 25.0 14.3 6.8
Average wind speed (m/s) 2.2 2.5 2.6 2.4 2.6 2.4 2.8 2.8
Table 4-7 Wind direction and speed during the dry season at the Bac Lieu station (1980-2013)
Probability (%) 18.0 5.8 16.1 40.1 11.5 4.4 1.2 0.5 2.3
Average wind speed (m/s) 2.3 3.2 3.2 2.9 2.6 1.9 1.6 2.2
Figure 4-3 Wind direction probability distribution at the Bac Lieu station
Tendency for southwest wind

in summer and east wind in
winter
b) Geography and geology

A vast plain called Mekong Delta stretches in southern Vietnam. There are no hilly areas around the site planned
for the power plants. With the average elevation of +0.4~0.8m above sea level, the low land area is covered with
water throughout the year. The overall area is flat with hardly any slopes.
As for the nature of the soil in the Cai Cung site, the ground has a low load bearing strength, and the soil must
be improved and compacted as appropriate in order to enhance its load bearing strength.
4-4
c) River water
The Mekong Delta region including the coastal area of Bac Lieu Province has a continuous low land, and river
water is affected greatly by tides of the sea. Because of the effect of the saline concentration and water
discharged from the nearby shrimp farms, the surface water quality control is very difficult, making the use of
surface water a great challenge. The use of ground water is also hard since the ground must be drilled to the
depth of 80 to 100m and the use is limited to consumption in everyday life.
Therefore, water required by Bac Lieu power complex for cooling and for plant use must be taken from the
Quan Lo reservoir that is in the Vinh My Canal area across National Highway 1 in the north, by pumping water
through pipelines of about 15 km as shown in the figure below. A dam system is constructed in the reservoir to
prevent inflow of salt water caused by the tides and thus supporting agricultural production. The intake of a
large quantity of water could impact the stable supply of agricultural water to the surrounding areas, and water
intake and irrigation water must be coordinated through the reservoir management office.
Figure 4-4 Suggested pipeline route to supply water to Bac Lieu power complex
National Highway 1
Reservoir
Pumping
station
Bac Lieu site
The statistics of river water temperature at Ganh Hao near Bac Lieu power complex is shown below:
Table 4-8 Average river water temperature at neighboring Ganh Hao measurement post (1978 – 2013)
Average 25.9 27.0 28.5 30.0 30.1 29.2 28.8 28.7 29.0 29.1 28.5 27.2 28.5
High 29.7 32.0 31.9 32.4 33.0 32.4 32.0 32.0 31.9 32.6 31.3 30.4 33.0
Low 24.2 24.0 23.9 26.5 27.0 25.8 25.6 25.5 26.4 26.2 25.4 23.3 23.3
4-5
ｄ）Sea water
The flow of sea water changes by season, with currents coming from the south in summer and from the north in
winter.
Figure 4-5 Sea current during summer and winter on East Sea
Summer Winter
Table 4-9 Average sea water temperature at Vung Tau (1978 – 2013)
Average 26.4 26.5 27.7 29.3 30.0 29.4 28.6 28.4 28.5 28.8 28.3 27.2 28.3
High 29.5 30.0 31.5 32.1 32.5 32.2 31.8 31.4 31.9 31.6 31.0 30.3 32.5
Low 23.8 24.0 24.1 25.2 26.7 25.4 25.6 25.0 24.0 24.7 24.0 24.8 23.8
* Vung Tau is to the north of Bac Lieu site by one degree of latitude.
4-6
e) Status of the ecosystems
Fig. 4-6 shows various types of eco-regions in southern Vietnam. The area has six main types of eco-regions
(Indochina mangroves, Tonle Sap·Mekong peat swamp forests, Tonle Sap freshwater swamp forests, SE
Indochina dry evergreen forests, S. Vietnam lowland dry forests, and S. Annamites Mountain rain forests). The
Mekong Delta region has the first four types of the eco-regions. At the coastal region downstream of the
Mekong River where Bac Lieu Province is located, the representative eco-region of the area is Indochina
mangroves (Fig. 4-6).
Figure 4-6 Vegetation in southern Vietnam
Bac Lieu Province
Source: “Evaluation of Vietnam’s tropical forests and biological diversity” 2013 version,
by Sun Mountain International and the Cadmus Group
4-7
Based on its specific ecological conditions, the Mekong Delta region contains various and internationally
recognized protected areas, especially that for birds (Fig. 4-7). Among protected areas of Bac Lieu Province, the
province has one area that is designated for birds and is of great significance.
Figure 4-7 Protected areas in southern Vietnam
Bac Lieu Province
Source: “Evaluation of Vietnam’s tropical forests and biological diversity” 2013 version,
by Sun Mountain International and the Cadmus Group
3）Social environment
a) Land use in the Dong Hai district (2012 statistical yearbook data)
Total district area: approximately 563.3km2
Agricultural land: 48,534 ha
(38,398 ha is used for aqua-farming, 956 ha for farmland and 2249 ha for salt field)
Forest reserve: 1870 ha
The land planned for Bac Lieu PGC construction is comprised mainly of forest reserves, land used for
low-production aqua-farming, and salt fields. According to the developmental vision for 2020 to 2030, the Cai
Cung area will be continuously developed for aqua-farming for shrimp, salt fields and the coastal forest reserves
through forestation. There are very small number of households and residential areas in the Project area at
4-8
present, with no plan for further development; thus the area is advantageous in that it offers potential for
relocating the residents at low cost. Currently, there is no factory in the neighboring areas and no environmental
issue such as air pollution.
b) Ethnic groups
According to the 2012 statistical yearbook, the population of Bac Lieu Province is 872,400 and is made up with
Kinh, Krom, Hoa (Chinese), Tay, Nung, Tai, Muong and Cham peoples. The ratio of the Kinh people is the
highest among all the peoples. Ethnic minorities and rarities reside mainly in northern Vietnam.
Figure 4-8 Map of ethnic group distribution in Southern Vietnam
Ho Chi Minh city
Bac Lieu Province
Source: "IKAP Network for Capacity Building in MMSEA", case study funded by
Swiss Development Coorperation (SDC), 2005
c) Social infrastructures (2012 statistical yearbook)

Municipalities: the area has 11 administrative units of the municipality level (10 municipalities, 1 town
and 84 villages).
Total population: 144,750 persons with 31,924 households
Economical structure: agriculture, forestry and aqua-farming: 60％
industries and construction: 17％
trade and service: 23％
Port: there is no sea port in Bac Lieu Province.
Canal: there are many canals in Bac Lieu Province, facilitating the travel of fishing boats.
4-9
Vehicular traffic: there are two ways to access the power plants from downtown Bac Lieu by road
① Route going through the coastal road (base: 6.5m, width: 3.5m)
There are many bridges on the way, which will need reinforcement for the
transportation of heavy loads. The bridge over the river right before the site is under
construction as of December 2014, and the river must be crossed by boat.
② Route going through the National Highway 1, traveling the Gai Rai district to south and
reaching the coastal road.
Unpaved roads continue on the way.
The Provincial People’s Committee of Bac Lieu intends to focus on the development of the
area, and there is a plan to build a road with a width of 40m as shown as in Fig. 4-7 prior to
the power plant construction. The new road will start from the National Highway 1 which
runs 10km away from the coast and parallel to it, and end somewhere near the power plant
area. Once the road is completed and connected to the existing coastal road, access to the
area will be more convenient and the social development of the surrounding areas can be
expected.
Figure 4-9 Access roads to the site
Downtown Bac Lieu
National Highway 1
③ ①
②
Coastal road
Source: prepared by Study Group based on Google
4-10
4) Forecast future (The case the project has not been carried out)
This Project is Phase 1 (1,200MW) of the power generation complex planned for the Dong Hai area, Bac Lieu
Province in southern Vietnam with the total output of 3,600MW, and its scope includes the construction of
coal-fired thermal power generation plants, port facilities for coal transportation and water intake and discharge
facilities. Once completed, it is expected to supply electricity not only to the customers in Ho Chi Minh, a city
of commerce, but also to the customers in southern Vietnam in and around Bac Lieu Province, thereby
improving energy security.
coal TPP; thus the job creation in southern Vietnam is also anticipated.
If the project has not been carried out, there is a fear of power supply shortage to the Vietnam southern region.
Also, there is a fear of delay development of Dong Hoi district.
4-11
(2) Environmental Improvement Effects from the Project Implementation
1）Environmental and mitigation measures for air quality
In this project, not only the Vietnamese emissions standards but also international emissions standards (e.g.
International Finance Corporation’s Environmental, Health and Safety Guideline for Thermal Power Plants,
2008) must be followed regarding pollutants in emissions.
a) Sulfur Oxides: SOx
If flue gas desulfurization (FGD) equipment to absorb and remove SOx in flue gas is not installed, SOx in
flue gas would be emitted straight into the air. For this project, the adoption of flue-gas desulfurization
equipment using the wet lime-gypsum method (removal efficiency of 85-98%) which uses lime for
desulfurization, has been widely utilized internationally and has high removal efficiency, or similar
equipment will be considered.
b) Nitrogen Oxides: NOx
If flue-gas denitration (FGD) equipment to absorb and remove NOx in flue gas is not installed, NOx in flue
gas would be emitted straight into the air. For this project, the adoption of denitration equipment using the
selective catalytic reduction method (SCR) (removal efficiency of 85-98%) which uses ammonia for
denitration, has been widely utilized internationally and has high removal efficiency, or similar equipment
will be considered.
c) Particle Matter: PM
The adoption of electrostatic precipitator (ESP) which has been widely utilized internationally and has high
removal efficiency (96.5-99.95%) or similar equipment will be considered.
d) Environment-related reference values used in the Project
Regarding the design values used in the Project in terms of air pollutant emissions, the Vietnamese national
technological standard for emissions from thermal power generation QCVN22:2009/BTNMT (in the case of the
Project, output factor of Kp=0.85, regional factor of Kv=1.0 are applied) was used as a base, and the most strict
of that or the standards set for thermal power generation boilers (2008) in the Environmental, Health and Safety
Guidelines (EHS Guidelines) issued by World Bank Group’s International Finance Corporation (hereinafter
IFC) are adopted. The design values for pollutant emissions and target values for pollutant concentration for the
Project are shown in Table 4-10. Since design emission values cannot be very specific at this stage, the values
commonly seen for coal-fired thermal power plants in Vietnam are used for reference (given by local
consultants).
4-12
Table 4-10 Emissions at the stack outlet and reference values (limits)
Emissions at stack Vietnamese standard: QCVN 22:2009/BTNMT
International
outlet (mg/m3)
Parameter standard:
(each unit) Plant capacity ≤1200MW Plant capacity >1200MW
IFC (mg/m3)
(mg/m3) Kp = 0.85, Kv =1.0 Kp = 0.7, Kv =1.0
850 700
(coal property: volatile matter (coal property: volatile matter
content ≦10%） content ≦10%)
NOx 250 510
552.5 455
(coal property: volatile matter (coal property: volatile matter
content＞10%） content＞10%）
SOx 140 425 350 200 - 850

PM10 50
170 140 50
PM2.5 35
2) Estimation of air pollutant diffusion
In order to estimate the level of environmental impact in the surrounding area from the emission of air
pollutants from the power plants, air diffusion was estimated. The one-hour values and 24-hour values of SO2,
NO2 and suspended particulate matter were estimated to confirm that the reference values for respective hour
stipulated in the Vietnamese environmental standards and IFC / World Bank (WB)’s EHS Guidelines were met.
a）Methodology
IFC’s EHS Guidelines states that “the impact must be assessed through qualitative and quantitative assessment
with the use of the baseline air quality assessment and air diffusion model, in order to assess the expected ground
level pollutant concentration. The data on the local air, climate and air quality must be used when modeling the
diffusion, downwash, backwash, prevention of vortex effects at the source of emissions, nearby buildings and
topographic features. The diffusion models used shall be those internationally recognized or of equivalent
quality.”
The area around the site are relatively flat; however, the ground level pollutant concentration was estimated
using AERMOD* which is recommended for more complex and intricate landscapes and is mentioned in the
EHS Guidelines as an example of creating diffusion models.
* AERMOD (AMS/EPA Regulatory MODel): Air concentration estimation model for SO2, ozone, etc.
recommended by EPA of USA. It is a general-purpose model capable of estimating air diffusion in land with
complex shapes, and diffusion in buildings or convective mixed layers.
b）Calculation conditions
We are compared two scenarios by emissions dispersion calculations.
Scenario 1: The scenario of “SC600MW (sub critical)” which condition becomes more severe than USC.
Scenario 2: The scenario of “USC1000MW (ultra super critical)” which condition becomes more favorable than
SC.
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Table 4-11 Input Parameters
Scenario1 Parameters below were entered for each of the 600 MW units
QCVN 22:2009
Environmental parameter entered Input value capacity ≤ 1200MW IFC standard
Kp = 0.85
Kv =1.0
Stack height (m) 210
Number of stacks 1
Stack diameter (m) 7
3
Flue gas flow rate at stack outlet (m /s) 897.78
Flue gas temperature at stack outlet ( ) 80
Concentration of PM10 in flue gas at the standard 50
50 170
temperature (mg/Nm3)
Flow rate of PM10 in flue gas (g/s) 37.89
Concentration of PM2.5 in flue gas at the
35
standard temperature (mg/Nm3)
Flow rate of PM2.5 in flue gas (g/s) 26.53
Concentration of SO2 in flue gas at the standard 200 - 850
78 425
Flow rate of SO2 in flue gas (g/s) 58.83
Concentration of NOx in flue gas at the standard 510
150 552.5
Flow rate of NOx in emissions (g/s) 113.68
Scenario2 Parameters below were entered for each of the 10,000 MW units
QCVN 22:2009
Environmental parameter entered Input value capacity ≤ 1200MW IFC standard
Kp = 0.85
Kv =1.0
Stack height (m) 210
Number of stacks 1
Stack diameter (m) 7
Flue gas flow rate at stack outlet (m3/s) 1281.67
Flue gas temperature at stack outlet ( ) 80
Concentration of PM10 in flue gas at the standard 50
50 170
Flow rate of PM10 in flue gas (g/s) 54.1
Concentration of PM2.5 in flue gas at the
35
standard temperature (mg/Nm3)
Flow rate of PM2.5 in flue gas (g/s) 37.87
Concentration of SO2 in flue gas at the standard 200 - 850
78 425
Flow rate of SO2 in flue gas (g/s) 87.98
Concentration of NOx in flue gas at the standard 510
240 552.5
Flow rate of NOx in emissions (g/s) 259.67
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c) Calculation results
Table 4-12 Results of air pollutant diffusion simulation
Scenario1
Max concentration at ground Vietnam
Paramet IFC Guideline
Time Concentration Distance from BL1 stack standard
er (µg/m3)
(µg/m3) (km) - Direction (µg/m3)
All 3 power plants in operation: 6 units (6 x 600MW)
1h 181.5 3.2 - Southwest 350 -
SO2 24h 13.7 1.8 - East 125 50
Annual 2.2 2.7 - West 50 20
1h 203 6.4 - Southwest 200 200
NO2 24h 16.7 4.5 - Northwest 100 -
Annual 2.0 3.3 - Northwest 40 40
1h 116.9 3.2 - Southwest - -
PM10 24h 8.8 1.8 - East 150 50
Annual 1.4 2.7 - West 50 20
1h 81.9 3.2 - Southwest - -
PM2.5 24h 6.2 1.8 - East 50 50
Annual 1.0 2.7 - West 25 20
Bac Lieu PC
Bac Lieu City
Ganh Hao
Max Conc
Maximum concentration of SO2 – 1h – 3 x 2 x 600MW (Scenario 1)
4-15
Scenario2
Max concentration at ground Vietnam
Paramet IFC Guideline
Time Concentration Distance from BL1 stack standard
er (µg/m3)
(µg/m3) (km) - Direction (µg/m3)
All 3 power plants in operation: 3 units (3 x 1000MW)
1h 104.8 3.2 - Southwest 350 -
SO2 24h 8.2 3.0 - Northwest 125 50
Annual 1.2 3.1 - West 50 20
1h 195.8 5.6 - Southwest 200 200
NO2 24h 16.9 5.4 - Northwest 100 -
Annual 1.9 3.3 - Northwest 40 40
1h 67.5 3.2 - Southwest - -
PM10 24h 5.3 3.0 - Northwest 150 50
Annual 0.8 3.1 - West 50 20
1h 47.3 3.2 - Southwest - -
PM2.5 24h 3.7 3.0 - Northwest 50 50
Annual 0.6 3.1 - West 25 20
Bac Lieu PC
Bac Lieu City
Ganh Hao
Maximum concentration of SO2 – 1h – 3 x 1000MW (Scenario 3)
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c-1) Analysis
・ In the scenario1 (SC600MW × 6 units) , maximum landing point concentration of SO2, PM10,PM2.5
are lower than the prescribed standards of both Vietnam regulation and IFC guidelines. As for maximum
landing point concentration of NO2, it is same level around the prescribed standard.
・ In the scenario2 (USC1000MW × 3 units) , maximum landing point concentration of SO2, NO2,
PM10, PM2.5 are lower than the prescribed standards of both Vietnam regulation and IFC guidelines.
・ Maximum landing point concentration of each parameter of Scenario 2 is more suppressed than
scenario1. This is caused of the effect of the efficiency between SC and USC, and the difference of
output of 3,600MW → 3,000MW.
・ It will be possible to further reduce environmental load since the installation of high-efficiency flue-gas
denitration equipment will be considered during the detailed design stage.
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3）Environmental and mitigation measures for the eco-systems
Considering the reduction of the area of mangrove forests to be cut down
a） Situation with the mangrove outside of the levee (sea side)
・ The mangrove forests outside of the levee are positioned as forests for windbreak and sand
prevention. They are natural forests and the people’s committee has entrusted their care to the
residents. This area is not zoned for development and cannot be subdivided; thus the residents catch
shrimp and fish using a net instead of establishing aqua-farms.
・ Overall, the mangroves grow densely, except for some sections where mangroves are dying. Toward
the coast, the mangroves tend to be younger and shorter. This might be due to the mangrove
forestation that is done to create protective forests against coastal erosion caused by waves.
b）Situation with the mangroves inside the levees (land side)

・ The area inside the levees is not completely blocked out and sea water enters inside the levees.
However, the levees prevent sea water from coming in and out with tides to some extent, which
causes more noticeable deterioration of mangrove forests. The forests are sparse compared to the sea
side and leaves are lighter in color.
・ In the northern and western side of the planned construction side, the area has been developed for
aqua-faming of shrimp and weatherfish, etc. In the practice of aqua-farming, a large amount of
disinfectant is used, and it might have caused the land to become infertile and the mangrove forests
to deteriorate.
・ In the southeastern inland area, some lush mangrove forests have been observed.
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c）Environmental considerations based on the mangrove growth situation
・ The study confirmed that the mangrove growth situation is different between inside the levees (land
side) and outside (sea side) and the mangroves outside have mainly stayed close to their natural state.
Although mangroves are dotted about on the land side inside the levees, the area has been
devastated due to development as stated above. Thus, the measures that bring sufficient
environmental benefits will be to move the construction area to inside the levees from the usual
coastal area and to leave the mangroves outside the levees as much as possible.
・ Since mangroves act as a windbreaker, they could help prevent coal dust and ash from spreading
from the plant area and mitigate the impact of rust formed on machines and equipment due to
deposited salt from sea water.
・ The move of the site to inland necessitates the extension of the length of land preparation and
construction such as channels for water intake and discharge, coal conveyer, etc., raising concern for
cost increase.
Figure 4-10 Mangroves area
Aquaculture pond Mangrove forest

(less dense)
Levee
Mangrove forest

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c-1) Difference in the mangrove forest area to be cleared based on the site location (rough estimation)
Figure 4-11 The case of 30,000 DWT
800m
500m
Mangrove forest
2700m
1000m
Located right on the sea side Moved toward inland

Area to clear mangrove 288ha 36ha
Area of avoided mangrove clearing Base 252ha (88% reduction)
① Coastal mangrove area: (2700m＋500m)×(1000m＋800m)÷2 ≒ 288ha (roughly estimated as trapezoid

area)
(including river levee area)
② Area of coastal mangrove forests whose development cannot be avoided: total of 36ha
a) Discharge channel 950m × （80m ＋（10m×2））= 95,000 ㎡
b) Intake channel – west side 900m ×（30m＋（10m×2））= 45,000 m2
east side 800m ×（70m＋（10m×2））= 72,000 m2
c) Coal, etc. transportation facility 800m × (25m+(10m×2)) = 36,000 m2
d) Levee – west side 800m ×（50m＋(10m×2)）=56,000 m2
east side 800m ×（50m＋（10m×2））=56,000 m2
4-20
c-2) Difference in mangrove forest area to be cleared based on the site location (rough estimation)
Figure 4-12 The case of 10,000 DWT
800m
500m
Mangrove forest
2700m
1000m
Located right on the sea side Moved towards inland

Area to clear mangrove 236ha 20ha
Area of avoided mangrove clearing Base 216ha (92% reduction)
① Coastal mangrove area: (2200m＋500m)×(1000m＋800m)÷2 ≒ 236ha (roughly estimated as trapezoid

area)
(including river levee area)
② Area of coastal mangrove forest where development is essential: total of 20ha

a) Discharge channel: 800m ×（90m ＋（10m×2））=88,000 m2 (outlet area)
b) Levee – west side 800m ×（50m＋(10m×2)）=56,000 m2
east side 800m ×（50m＋（10m×2））=56,000 m2
4-21
(3) Environmental and Social Impact of the Project Implementation
1）JICA Guidelines
The Japan International Cooperation Agency (JICA) established and published new JICA Guidelines for
Environmental and Social Considerations (hereinafter “New Environmental Guidelines”) dated April 1, 2010.
These guidelines aim to list the responsibilities and procedures for environmental and social considerations
performed by JICA as well as the requirements for the host country, thereby encouraging the host countries, etc.
to make appropriate environmental and social considerations while ensuring the appropriate implementation of
support and confirmation by JICA for environmental and social considerations. The guidelines also stipulate
that “the host country, etc. are required to fill the screening format, and the information in the format will be
refereed to for the categorization,” and “to use the corresponding environmental checklists for each sector as
appropriate when conducting the environmental review.”
2）Confirmation result regarding environmental considerations for the Project

Regarding the environmental impacts from the construction of Bac Lieu power complex, the JICA
environmental checklist (2. Thermal power) was used to list items of environmental and social considerations
that will be needed in the later stage. The confirmation result of the environmental checklist in Table 4-7 is the
result at this point in time. Further confirmation will be necessary after the environmental impact assessment
(EIA) is conducted during the next stage.
Table 4-13 JICA Environmental checklist (“2. Thermal power”)

Item Main matter to be Impact Impact Measures to be taken and examinations
category
checked outline ●: grave required

○: small
×: none
(1) EIA (a) Is EIA report －－ EIA report is not prepared since it is needed
1.Permits and approvals, explanations
and prepared? during the detailed F/S stage. No detailed

environme F/S has been done in Vietnam for USC
ntal thermal power.
permits
(b) Is EIA report －－ Not approved yet. After conducting the EIA
approved by the above, the approval from the provincial
government? government is obtained.
(c) Does the EIA －－ When decision to approve the EIA report,
report approval come environmental requirements and provisions
with conditions? If so, the owner must follow during the
will the conditions be construction and operation of the proposed
met? project will be listed.
(d) Aside of those －－ Environmental requirements and permits
above, are other will be listed in the EIA report approval
necessary decision document by the authorities in
environmental permits charge (MONRE, etc.). Permits for water
obtained from local and land use, hazardous waste generation,
authorities in charge? etc. will be needed in the next stage.
(2) (a) Are the project －－ EIA must be done according to Vietnamese
Explanati contents and impacts laws and regulations. During EIA
ons to the explained and implementation, explanations must be given
4-22
local understood to the local residents via Provincial People’s
stake- appropriately by the Committee of Bac Lieu and opinions of the
holders local stakeholders local residents obtained as appropriate.
including information
disclosure?
(b) Are the comments －－ It is necessary to properly address the
from the residents comments raised by the local residents
reflected in the project during the EIA implementation.
content?
(3) (a) Are the multiple ・Installed －・Advantages and disadvantages are
Examinati alternatives to the capacity compared between 2 units with 600MW
on of proposed project each and one unit with 1,000MW.
alternative considered (by ・A proposal was made to move the plant
s including ・ ● site from the coastal area where mangroves
environmental and Environmenta grow densely to inland to minimize the
social matters when l clearing of natural mangrove forests.
considering)? consideration Provincial People’s Committee of Bac Lieu
s has received the proposal favorably.
(1) Air (a) Do pollutants such ・SOx, NOx ● ・The Vietnamese emissions standard for
2. Anti-pollution measures
quality as SOx, NOx, PM, etc. and PM are new facilities and those of EHS Guidelines
emitted during PP emitted due of IFC/WB must be met by installing flue
operation meet the to coal-fired gas desulfurization and denitration
emission standard of power equipment, and ESP.
the country? Will there ・Cumulative ● ・The quantitative study, estimation and
be areas where the impact with assessment will be done in EIA, including
environmental that from the cumulative impacts.
standards of the existing
country are not met? facilities
(b) For Coal-fired PP, ・Coal dust ○ Coal dust from the coal storage yard and
could scattered ash scattering transport facilities or dust from the coal ash
dust from coal storage disposal yard could cause air pollutions.
yards and ・Anti-pollution measures and facilities such
transportation facilities as adopting enclosed structure for coal
or dust from coal ash transport facilities and installing dust cover,
disposal yards cause ・Coal ash ○ etc. will be planned during detailed design
air pollution? scattering stage.
Will anti-pollution ・Water sprinkling and windshield nets at the
measures be taken? coal storage yard to prevent scattering
・Scatter prevention by transporting ash to
the disposal yard using the slurry method.
・Anti-scatter measure of planting trees
around the ash disposal yard
(2) Water (a) Does effluent from ・Discharge of ● ・Plan so that Vietnamese national
quality PP including thermal thermal technology standard for industrial effluent
effluent meet the effluent QCVN40:2011/BTNMT are met.
standards of the ・Waste water ● ・Plan for the installation of portable toilets
country? Are there from plants and waste collection by specialized
areas where the ・Cumulative × company during the construction, etc.
environmental impact with ・Plan to install equipment in proper
standards of the that from the locations to continuously measure the
country are not met or existing cooling water temperature when warm.
areas of waters with facilities ・Compliance with the nation’s
high temperature? environmental standard for effluent will be
confirmed during EIA report preparation.
(b) For coal-fired PP, ・Leachate ● ・Plan so that Vietnamese national
does leachate from the from coal technology standard for industrial effluent
coal storage yard and storage yard QCVN40:2011/BTNMT are met.
ash disposal site meet ・Leachate ● ・For leachate, an impervious layer of
the national discharge from coal ash polyethylene or asphalt concrete is planned
4-23
standards? disposal sites for the bottom of the disposal sites.
(c) Will measures be Same with (a) Same ・Plan to discharge effluent from PP after
taken to prevent and (b) above with (a) proper treatment and based on the
effluent from and (b) Vietnamese national technology standards
polluting surface and above QCVN14:2008/BTNMT for human sewage
ground water, soil, sea, and QCVN40:2011/BTNMT for industrial
etc.? effluent
(3) Waste (a) Will waste (oil and ・Coal ash ● ・Consider coal ash and gypsum use
chemical waste), coal generated ・Plan so that waste is treated and disposed
ash generated from ・Gypsum ○ to meet Vietnamese standards TCVN
operation or gypsum from 6705:2000 for classification of
from flue gas desulfuriza non-hazardous waste and solid waste,
desulfurization be tion TCVN 6706:2000 for classification of
treated and disposed equipment hazardous waste and TCVN 6696:2000
properly based on the ・Waste oil ○ for sanitary landfills.
national regulations? and sludge ・Plan for regular collection by specialized
generated companies.
(4) (a) Do noise and ・Noise from ○ ・There are Vietnamese national technology
Noise and vibration meet the machines standard for noise QCVN26:2010/BTNMT
vibration standards of the ・Cumulative × and those for vibration
country? impact with QCVN27:2010/BTNM. Vietnamese
that from the standard TCVN3985:1999 stipulates the
existing allowable noise level at workplaces. Plans
facilities will be drawn to meet these standards.
(5) (a) If a large amount × × ・Planned to supply water for entire Bac
Subsidenc of ground water is to Lieu 1&2&3 coal-fired PP from Quan Lo
e be extracted, could Canal, located 12-14km away from the site.
subsidence occur? Planned to supplement water during water
quality deterioration or cooling water
shortage by installing seawater desalination
units. No groundwater is extracted; thus no
concern for subsidence.
(6) Odor (a) Are there sources Residual ○ Ammonia might be used for water supply
of odor? Will ammonia treatment and become an odor source;
measures for odor be generated however, ammonia leak will be prevented
implemented? with proper maintenance and management
and in the case of a leak, its diffusion will be
prevented with water sprinkler, etc.
(1) (a) Is the site in a Power × ・The area around the Project site is not part
t
3. Natural
Protected protected area generation of any protected areas designated by the

areas designated by the facility country’s laws or international treaties. The
country’s laws or installation area might be newly designated as national
i
international treaties? park, etc.; thus it will be confirmed again

Will the project impact during the EIA report preparation.
the protected area?
(2) (a) Does the site Power ● ・No special species listed in the Vietnamese
Ecosyste contain primary generation Redbook was found during the floristic
m and forests, tropical natural facility survey at the proposed Project site for Bac
biofacies forests, or ecologically installation Lieu PP. Reconfirmation is needed during
important habitats EIA. If such species exist, appropriate
(coral reefs, mangrove protection and mitigation measures must be
wetland, tidal flats, taken and protection result monitored and
etc.)? evaluated.
・Mangroves grow along the coast near the
Project site (shrimp farms near the Project
site was created by clearing mangrove
forest).
(b) Does the site Power × ・According to the report by the local
contain habitats of generation consultant, no special species listed in the
4-24
precious species facility Vietnamese Redbook was found during the
designated for installation floristic survey at the proposed Project site
protection by the for Bac Lieu PP.
country’s laws or
international treaties?
(c) If significant Power ● ・A mangrove wetland exists along the coast
impact is feared for generation near the Project site. A proposal was made
the ecosystems, will facility to move the site location toward inland in
measures be taken to installation order to minimize the environmental impact
mitigate impact on the and reduce the area of mangroves to be
ecosystems? cleared.
(d) Will (surface or Intake of ○ ・The thermal effluent discharge, intake of a
ground) water intake cooling water large amount of cooling water and leachate
by the project impact and water for would certainly impact ecosystems in the
aquatic environment plant use surrounding bodies of water. The level of
such as of rivers? Will impacts must be studied during the EIA
measures be taken to preparation stage.
mitigate impacts on
aquatic organisms,
etc.?
(e) Will the thermal ・Thermal ● ・Effluent must meet Vietnamese standards
effluent discharge, effluent for waste water and the effluent standards of
intake of a large discharge IFC’s EHS Guidelines, with the use of waste
amount of cooling ・Plant ○ water treatment equipment.
water and leachate effluent ・Quantitative study, estimation and
impact ecosystems in discharge evaluation must be done in EIA including
the surrounding bodies that for cumulative impacts.
of water?
(1) (a) Will the Land ○ The implementation of the Project will
4. Social environment
Resettlem implementation of the acquisition cause involuntary resettlement of residents.

ent Project cause However, the area around the Project site is
involuntary used mainly as shrimp farms and salt fields.
resettlement of The area’s small population offers favorable
residents? If so, will conditions for land acquisition and
an effort be made to resettlement of the residents. The degree of
minimize the impact the impact must be studied during the EIA
of resettlement? preparation stage.
(b) Will reasonable Land － Since the Provincial People’s Committee of
explanations be given acquisition Bac Lieu supports the Project for its
to the residents on potential contribution for regional
compensation and development, the assistance from the
reconstructing committee can be expected during
livelihood before negotiations for compensation and land
resettlement? acquisition. Plans will be made to offer
appropriate explanation before resettlement.
(c) Will a study be Land － The resettlement plan is usually drawn
done for resident acquisition during the EIA preparation stage.
resettlement and a
resettlement plan be
drawn that include
compensation at the
reacquisition price and
recovering livelihood
after resettlement?
(d) Will the Land － It must be considered during the EIA
compensation be paid acquisition preparation stage.
before resettlement?
(e) Are the Land － Plans will be made to prepare compensation
compensation policies acquisition policies in writing.
4-25
documented?
(f) Does the plan give Land － The plan will be drawn to offer special
special considerations acquisition considerations for the socially vulnerable.
for the socially
vulnerable among
those resettled, such as
women, children,
elderly, the poor,
ethnic minorities and
indigenous peoples?
(g) Will the consent Land － The plan will be made to obtain residents’
from the residents be acquisition consent before resettlement.
obtained before
resettlement?
(h) Will there be a Land － The plan will be drawn to create a system to
system to facilitate acquisition facilitate resident resettlement appropriately
resident resettlement and to ensure sufficient execution ability
appropriately? Will and budgetary measures.
there be sufficient
execution ability and
budgetary measures?
(i) Will monitoring for Land －・There is no plan to monitor the impacts
the impact from acquisition from resettlement at this time.
resettlement be
planned?
(j) Is there a system to Land －・A system will be created to handle
handle grievances? acquisition grievances from the residents properly.
(2) Living (a) Will the Project Increase in ○ ・The revitalization and promotion of the
and cause negative impact economic area will be done through the employment
livelihood on the life of the activities due of local residents and use of local
residents? Will to inflow of companies.
considerations be workers, etc.
given for mitigation if
necessary?
(b) Have sufficient Development ○ ・No big hospital nearby. There is a clinic in
social infrastructures of social downtown Bac Lieu, which is one hour
needed for the infrastructure away by car.
implementation of the due to inflow ・At this point, there is no town (with
Project (hospitals, of workers, schools or hospitals) or reservoir developed
schools, roads, etc.) etc. for the employees.
been developed? If
not, are there
development plans?
(c) Will the traffic Increased ○ ・The construction plans will be announced
from oversized traffic due to and measures to prevent car accidents will
vehicles used for the construction be implemented.
Project impact the vehicles
traffic on highway in
the area? Will
measures be taken to
mitigate the impact on
the traffic as
necessary?
(d) Will the inflow of Increased ○ The construction plans will be announced
workers due to the traffic due to and measures to prevent car accidents will
Project activities bring construction be implemented.
disease risks vehicles
(including infectious
diseases such as HIV)?
4-26
Will considerations be
given for public health
as necessary?
(e) Will surface and ・Intake of ○ ・Reexamine the amount of necessary water
ground water intake by water for intake (reduce the cooling water amount and
the Project and cooling and increase water for desulfurization
thermal effluent for plant use equipment)
discharge impact ・Thermal ・Confirm the fishery situation
existing uses of water effluent
and bodies of water discharge
(especially fishery)? ・Plant
effluent
discharge
(3) (a) Could the Project Power × The Project will be an addition to the
Cultural harm heritage or generation existing PP, and there is no heritage or
heritage historical sites of facility historical sites of archaeological, historical,
archaeological, installation cultural or religious importance on the site.
historical, cultural or
religious importance?
Are measures under
Vietnamese laws
considered?
(4) (a) If there is Power × There are farms and towns around the site
Landscape landscape requiring generation but no tourist spot.
special care, would it facility
be negatively affected? installation
If so, will necessary
measure be taken?
(5) Ethnic (a) Is care taken to Land × Most of the residents in the area are Kinh
minorities mitigate impacts on acquisition (Viet) people and no ethnic minorities live
and the cultures and in and around the Project site.
indigenou lifestyles of the ethnic
s peoples minorities and
indigenous peoples in
Vietnam?
(b) Are the rights of Same as Same as Same as above
the ethnic minorities above above
and indigenous
peoples for land and
resources respected?
(6) Work (a) Will the Employment ○ Plans will be made to comply with
environme Vietnamese laws on of workers Vietnamese law below for conditions of
nt work environment be employment:
(including complied in the ・Labor laws (promulgated as of Jun. 23,
occupatio Project? 1994 by the national assembly)
nal safety) ・Decision 2733/2002/BYT (promulgated as
of Oct. 10, 2002 by Ministry of Health)
・TCVN3985:1999 for permissible noise
level in workplaces
(b) Will there be Employment ○ Fire protection and other safety facilities
facilities to protect of workers will be checked.
people involved in the
Project, e.g. safety
equipment for
industrial accident
prevention and
hazardous substance
management?
(c) Will there be safety Employment ○ Plans will be made to implement trainings
4-27
and sanitation plans, of workers and other measures for the safety of the
safety training (incl. people involved in the Project.
road safety and public
health) and other
measures addressing
people involved in the
Project?
(d) Will there be Employment ○ Plans will be made to implement trainings
measures to ensure of security and other measures for the people involved
that security officers officers in the Project.
for the Project will not
violate the safety of
the people involved in
the Project and local
residents?
(1) Impact (a) Will there be ・Dust ○ Since there are residential areas nearby,
5. Other
during mitigation measures ・Noise mitigation measures will be examined and

constructi for the pollution ・Turbid water prepared as needed during EIA, such as:
on during the ・Waste ・Keep noisy work away from the boundary
construction (e.g. ・Limit work during nighttime
noise, vibration, turbid ・Use covers on vehicles transporting soil,
water, dust, exhaust sand, etc.
gas and waste)? ・Sprinkle water on construction area and
roads used
・Improve vehicles transporting materials
・Install drainage facilities suitable for the
landform and capacity, etc.
(b) Will the work Land ○ ・Mitigation measures will be planned as
negatively impact the preparation needed during the EIA report preparation,
natural environment such as the reduction of the area of
(ecosystems)? Will mangrove cleared and measures to control
there be mitigation effluent temperature.
measures?
(c) Will the civil work ・More ○ ・The Project might cause a conflict between
impact the social economic construction workers and local residents.
environment activity from Mitigation measures will be planned as
negatively? Will there worker needed during the EIA report preparation,
be mitigation inflow such as employing locals, regional
measures? ・More traffic revitalization through using local
due to companies, announcing construction
construction schedules and measures to prevent traffic
vehicles accidents.
(2) (a) For coal-fired PP, Fire at coal ○ The installation of sprinklers, etc. will be
Accident is there plan to prevent storage yard planned to prevent spontaneous
prevention spontaneous combustions in the coal storage yard.
measures combustions at coal
storage yard (water
sprinkler, etc.)?
(3) (a) Will monitoring by －－ Based on the monitoring plan drawn during
Monitorin the Project the EIA implementation, exhaust gas, waste
g implementing entity water, air and water quality and noise will
be planned and be measured regularly.
conducted for items
above that might cause
impacts?
(b) How are the items, －－ Based on the environmental monitoring plan
methods and drawn during the EIA implementation,
frequencies decided in appropriate items, methods and frequencies
the plan? are decided through discussions with
4-28
regulatory agencies.
(c) Will the system of －－ Based on the environmental monitoring plan
monitoring by the drawn during the EIA implementation, the
Project implementing monitoring by the Project implementing
entity (organization, entity will be carried out.
staff, equipment,
budgets, etc. and
continuity) be
established?
(d) Are the method －－ Based on the environmental monitoring plan
and frequency of drawn during the EIA implementation, the
reports by Project monitoring by the Project implementing
implementing entity to entity will be planned and implemented.
competent agencies
specified?
Reference (a) If required, －－ An outdoor switch yard corresponds to
6. Notes
to other applicable check items transmission, distribution and substation

environme in the checklist for facility. Applicable check items in the
ntal transmission, checklist for transmission, distribution and
checklists distribution and substation will be checked and evaluated
substation must be during the EIA report preparation.
checked and evaluated
(if the construction of
such facilities is
required)
(b) If required, －－ As the port and harbor are part of the
applicable check items project, applicable check items in the
in the checklist for checklist for port and harbor will be
port and harbor must checked and evaluated during the EIA report
be checked and preparation.
evaluated (if the
construction of such
facilities is required)
Notes for (a) If needed, －－ With the use of high-efficiency USC boilers,
using cross-border or the CO2 emissions per generated output will
environme global-level be reduced compared to other existing PP.
ntal environmental impact
checklist must be confirmed
(e.g. cross-border
waste disposal, acid
rain, ozone layer
depletion, global
warming factors)
4-29
(4) Outline of Vietnamese Laws on Environmental and Social
Considerations and Compliance Measures

1) Environmental administration of Vietnam
Under the Law on Environmental Protection, the Ministry of Natural Resources and Environment of Vietnam
(MONRE) is expected to perform administrative duties for environmental management by cooperating with
related ministries and agencies. To strengthen the coordinative ability, the organizational change was made
within MONRE in September 2008, and Vietnamese Environment Administration (VEA) was established. This
agency has environmental management-related functions from creating policies and strategies to administrative
execution such as EIA and verification.
In a rural province, a branch office of VEA has been established within the Department of Natural Resources
and Environment (DONRE) of the province after the organizational change of MONRE. As a Vietnamese
administrative agency, DONRE is positioned to be under the control of the people’s committee of the
province, and is supervised by people’s committee of the province in terms of local administration. The local
administration in Vietnam is done by the people’s committee of respective province or city under direct
control of the central government, and people’s committees have a great role to play when implementing
measures against environmental pollution.
2）Outline of Vietnamese environmental laws

This section lists environmental laws, regulations, standards, ministry orders, etc. that are relevant to coal-fired
power plant construction projects.
a) Laws related to environmental assessment

a‐1 Law on Environmental Protection
The Law on Environmental Protection passed the National Assembly of the Socialist Republic of Vietnam on
November 29, 2005, promulgated on December 12, 2005 in the President’s Ordinance 29/2005/L/CTN and
enforced as of July 1, 2006. The revised Law on Environmental Protection (55/2014/QH13) was approved on
June 23, 2014 by the national assembly to come to effect on January 1, 2015. Relevant to the Project in the
revised Law on Environmental Protection are Chapter 3 clause 2 (Strategic Environmental Assessment, SEA)
(sections 13-17) and clause 3 (EIA) (sections 18-28).
a‐2 Decree 80/2006/ND-CP

Issued on August 9, 2006, it sets forth the details and guidelines for the implementation of some sections of
the Law on Environmental Protection.

Issued on August 9, 2006, it sets forth administrative penal provisions in the field of environmental protection.
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Issued in February 2008, it revises and adds to Decree 80/2006/ND-CP.
a‐5 Circular 08/2006/TT-BTNMT

Issued on September 8, 2006, it sets forth the guidance for SEA, EIA and environmental protection measures.
a‐6 Circular 05/2008/TT-BTNMT

Issued on December 8, 2008, it gives detailed guidelines for implementing many items for SEA, EIA and
environmental protection measures which are stipulated in the Law on Environmental Protection and Decree
21/2008/ND-CP.

Issued on April, 18, 2011, it addresses EIA, strategic assessment, etc.

Issued on November 14, 2013, it addresses sanctions for administrative non-compliances in the field of
environmental protection.
a‐9 Circular 09/2014/TT-BNNPTNT

Issued on March 26, 2014, it addresses strategic environmental assessment and the regulation on some contents
of EIA.

Issued on April 29, 2014, it revises parts of the decrees on strategic environmental assessment.
a‐11 Decision 1216/QD-TTg

Issued on September 5, 2014, it sets forth strategies up to 2020 and visions up to 2030 regarding environmental
protection.
a‐12 Decision 1030/QD-TTg

Issued on July 20, 2009, it describes the development of Vietnam’s environment industries up to 2015 and
visions up to 2025.
b) Environment-related air quality standards relevant to thermal power generation projects

b‐1 Standard for emissions from thermal PP: national technological standard QCVN 22: 2009/BTNMT
The maximum permissible concentration level of pollutants contained in the flue gas from thermal power plant
Cmax is calculated using the formula below:
Cmax = C x Kp x Kv
C is given as shown in Table4-14 depending on the types of pollutants and fuels.
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Table 4-14 Emissions reference values for pollutants in flue gas (QCVN 22:2009/BTNMT)
Concentration (mg/Nm3)
No Parameter B (new plant)
A (existing plant)
Coal Oil Gas
1 PM 400 200 150 50
- 650
(coal property : volatile
NOx matter content ＞10%)
2 1,000 600 250
(as NO2) - 1,000
(coal property : volatile

matter content ≦10%)
3 SO2 1,500 500 500 300
Kp is the output coefficient and given as shown in Table 4-15 based on the generated output for the area:
Table 4-15 Value of the output coefficient Kp (QCVN 22:2009/BTNMT)
Generating capacity (MW) Kp
P ≤ 300 1
300 < P ≤ 1,200 0.85
P ≥ 1,200 0.7
Kv is the regional factor and given as shown in Table 4-16 depending on the region:
Table 4-16 Value of regional factor Kv (QCVN 22:2009/BTNMT)
Region and area category Kv
If the distance between thermal PP to the boundary to areas
below is less than 5km: special type city and type I city area,
Grade 1 0.6
forest for special use, designated natural, historical and cultural
heritage
If the distance between thermal PP to the boundary to special
type city and type I city area is 5km or more, or distance from
Grade 2 0.8
such PP to the boundary of type II, III and IV city area is less
than 5km
The distance from industrial complex or thermal PP to the
Grade 3 boundary of type II, III and IV area is 5km or more, or distance 1.0
from thermal PP to the boundary of type V city is less than 5km
Grade 4 Farming village 1.2
Grade 5 Farming village in mountains 1.4
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The city categories are shown in Table 4-17:
Table 4-17 City categories (No.42/2009/ND-CP)
Population density: 12,000/km2 or more
Category I Non-farm workers: 85% or more
(city with capital-level hub functions )
Category II
Non-farm workers:80% or more
Category III
Category IV
Category V
b‐2 Air quality standard: national technological standard QCVN 05: 2009/BTNMT
The air quality standard of Vietnam is shown in Table 4-18:
Table 4-18 Maximum permissible concentration of main pollutants in the air (QCVN 05:2009/BTNMT)
(Unit: μg/m3)
Yearly
No Parameter 1-hr average 3-hr average 8-hr average
average
1 SO2 350 - 125 50
2 CO 30,000 10,000 5,000 -
3 NOx 200 - 100 40
4 O3 180 120 80 -
5 Suspended particulate matter (TSP) 300 - 200 140
6 Particulate matter ≤ 10 μm (PM10) - - 150 50
7 Pb - - 1.5 0.5
Note: (-): no stipulation
c) Environment-related standards for water quality relevant to thermal power projects

c‐1 Discharge standard for industrial effluent: national technological standard QCVN 40: 2011/BTNMT
There is no Vietnamese discharge standard applicable only to thermal power generation, and the common
national technological standard for industrial effluent is used to regulate thermal power. The same standard
is applied to thermal effluent and wastewater from the coal storage yards and disposal site.
The maximum permissible level Cmax for pollutants in industrial effluent is calculated as below (Cmax=C is
used for temperature, pH, odor, color, coliform count, gross alpha radioactivity and gross beta radioactivity).
Cmax = C x Kq x Kf
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C is the reference value for pollutants in industrial effluent and defined as shown in Table 4-19
Table 4-19 Reference value C for pollutants in industrial effluent (QCVN 40: 2011/BTNMT)
Reference value (C)
No Parameter and substance name Unit
A B
1 Temperature 40 40
2 Color Pt/Co 50 150
3 pH - 6 to 9 5.5 to 9
4 BOD5 (20 ) mg/l 30 50
5 COD mg/l 75 150
6 Suspended solids mg/l 50 100
7 Arsenic mg/l 0.05 0.1
8 Mercury mg/l 0.005 0.01
9 Lead mg/l 0.1 0.5
10 Cadmium mg/l 0.05 0.1
11 Chromium (VI) mg/l 0.05 0.1
12 Chromium (III) mg/l 0.2 1
13 Copper mg/l 2 2
14 Zinc mg/l 3 3
15 Nickel mg/l 0.2 0.5
16 Manganese mg/l 0.5 1
17 Iron mg/l 1 5
18 Total cyanide mg/l 0.07 0.1
19 Total phenol mg/l 0.1 0.5
20 Total mineral fats and oils mg/l 5 10
21 Sulfide mg/l 0.2 0.5
22 Fluoride mg/l 5 10
23 Ammonium (as N) mg/l 5 10
24 Total nitrogen mg/l 20 40
25 Total phosphorus (as P) mg/l 4 6
Chloride
26 (not applicable when discharging into saline mg/l 500 1,000
water and brackish water)
27 Excess Chlorine mg/l 1 2
28 Total organochlorine pesticides mg/l 0.05 0.1
29 Total organophosphorus pesticides mg/l 0.3 1
30 Total PCB mg/l 0.003 0.01
31 Coliform Bacteria/100ml 3,000 5,000
32 Gross α activity Bq/l 0.1 0.1
33 Gross β activity Bq/l 1.0 1.0
4-34
The column A is applied to cases where the body water to which industrial effluent is discharged is also a
source of water for daily life. The column B is used for cases where the body water to which industrial effluent
is discharged does not supply water for domestic use. If the body water to which industrial effluent is
discharged has salt water or brackish water, the reference values for chloride are not used.
Kq is defined as shown below depending on the body of water to which industrial effluent is discharged.
Table 4-20 Kq when industrial effluent is discharged to a river, spring, canal, channel, mountain stream or
ditch (QCVN 40: 2011/BTNMT)
Flow rate Q of the body of water to which
Kq
industrial effluent is discharged (m3/s)
Q ≤ 50 0.9
50 ＜ Q ≤ 200 1
200 ＜ Q ≤ 500 1.1
Q ＞ 500 1.2
In Table 4-20, Q is an average flow rate for three months in the dry season with a smallest flow rate in three
consecutive years, calculated for rivers, springs, canals, channels, mountain streams or ditches to which
industrial effluent is discharged (based on the hydro-meteorological observatory data). If no flow rate data is
obtainable for such rivers, springs, canals, channels, mountain streams or ditches, Kq=0.9 is used. The
Department of Natural Resources and Environment in the area where the source of discharge is located assigns
an organization to determine the average flow rate for three months in the dry season which has the lowest flow
rate in a year. Such average flow rate serves as a basis for determining Kq.
Table 4-21 Kq when industrial effluent is discharged to a pond or lake (QCVN 40: 2011/BTNMT)
Volume V of the body of water to which
Kq
industrial effluent is discharged (m3)
V ≤ 10 x 106 0.6
10 x 106 ＜ V ≤ 100 x 106 0.8
V ＞ 100 x 106 1.0
In Table 4-21, V is an average volume for three months during the dry season with the smallest volume of water
in three consecutive years, calculated for ponds and lakes to which industrial effluent is discharged (based on the
hydro-meteorological observatory data). If no water volume data is obtainable for such ponds and lakes, Kq=0.6 is
used. The Department of Natural Resources and Environment in the area where the source of discharge is located
assigns an organization to determine the thee-month average volume for the dry season which has the smallest
volume in a year. Such average volume serves as a basis for determining Kq.
If industrial effluent is discharged to coastal sea waters, Kq=1.3 is used if such waters are not used for the
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protection of underwater life, water sports or other activities, and Kq=1.0 if the waters are used for the
protection of underwater life, water sports or other activities.
The velocity coefficient for effluent is defined as below:

Table 4-22 Velocity coefficient for effluent Kf (QCVN 40: 2011/BTNMT)
Velocity F（m3/24h） Kq
F ≤ 50 1.2
50 ＜ V ≤ 500 1.1
500 ＜ V ≤ 5,000 1.0
V ＞ 5,000 0.9
c‐2 Discharge standard for human sewage: national technological standard QCVN 14: 2008/BTNMT
For the human sewage from power plants, national technological standard for human sewage QCVN
14:2008/BTNMT is applied.
The maximum permissible level Cmax of pollutants in human sewage is calculated as below (Cmax=C is used
for temperature, pH and coliform count).
Cmax = C x K
C is the reference value for pollutants in human sewage and defined as shown in Table 4-23.
Table 4-23 Reference value C for pollutants in human sewage (QCVN 14:2008/BTNMT)
Reference value C
No Item Unit
A B
1 pH - 5–9 5–9
2 BOD5 (20 ) mg/l 30 50
Total suspended solids
3 mg/l 50 100
(TSS)
4 Dissolved solid mg/l 500 1,000
5 Sulfur (as H2S) mg/l 1.0 4.0
6 Ammonia (as N) mg/l 5 10
7 Nitrate NO3- (as N) mg/l 30 50
Animal and plant oil and
8 mg/l 10 20
fat
Surface-activating
9 mg/l 5 10
substance
10 Phosphate PO43- mg/l 6 10
11 Coliform MPN/100ml 3,000 5,000
4-36
K is defined as shown in Table 4-24 for service or public facilities, apartment and residential areas and
companies, based on their type, scale and area.
Table 4-24 Coefficient K for types of service or public facilities, and apartments (QCVN 14:2008/BTNMT)
Facility type Scale and area of the facility K
1. Hotel and rest house Hotel with 50 or more rooms and １
three or more stars
Less than 50 rooms 1.2
2. Representative institutions, office, school 10,000m2 or more 1.0
and research institution Less than 10,000m2 1.2
3. Department store and supermarket 5,000m2 or more 1.0
Less than 5,000m2 1.2
4. Market 1,500m2 or more 1.0
Less than 1,500m2 1.2
5. Restaurant and grocery store 500m2 or more 1.0
Less than 500m2 1.2
6. Production facility and army post 500 persons or more 1.0
Less than 500 persons 1.2
7. Apartment and residential area 50 households or more 1.0
Less than 50 households 1.2
c‐3 Water quality standard for surface water: national technological standard QCVN 08: 2008/BTNMT
The water quality standard for surface water is shown in Table 4-25.
Table 4-25 Water quality standard for surface water (QCVN 08:2008/BTNMT)
Concentration
No. Item Unit
A1 A2 B1 B2
1 pH - 6-8.5 6-8.5 5.5-9 5.5-9
2 Dissolved oxygen mg/l ≥6 ≥5 ≥4 ≥2
3 Suspended matter mg/l 20 30 50 100
4 CODcr mg/l 10 15 30 50
5 BOD5（20 ） mg/l 4 6 15 25
6 Ammoniac nitrogen NH+4 mg/l 0.1 0.2 0.5 1
7 Chlorine (Cl-) mg/l 250 400 600 -
8 Fluorine (F-) mg/l 1 1.5 1.5 2
-
9 Nitrite-nitrogen NO 2 mg/l 0.01 0.02 0.04 0.05
10 Nitrate-nitrogen NO-3 mg/l 2 5 10 15
11 Phosphate PO43- mg/l 0.1 0.2 0.3 0.5
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12 cyanogen compound CN- mg/l 0.005 0.01 0.02 0.02
13 Arsenic mg/l 0.01 0.02 0.05 0.1
14 Cadmium mg/l 0.005 0.005 0.01 0.01
15 Lead mg/l 0.02 0.02 0.05 0.05
16 Trivalent chromium Cr3+ mg/l 0.05 0.1 0.5 1
17 Hexavalent chromium Cr6+ mg/l 0.01 0.02 0.04 0.05
18 Copper mg/l 0.1 0.2 0.5 1
19 Zinc mg/l 0.5 1.0 1.5 2
20 Nickel Ni mg/l 0.1 0.1 0.1 0.1
21 Iron mg/l 0.5 1 1.5 2
22 Mercury mg/l 0.001 0.001 0.001 0.002
23 Surfactant mg/l 0.1 0.2 0.4 0.5
24 Oils and fats mg/l 0.01 0.02 0.1 0.3
25 Phenol mg/l 0.005 0.005 0.01 0.02
Agrichemicals
Aldrin + dieldrin μg/l 0.002 0.004 0.008 0.01
Endrin μg/l 0.01 0.012 0.014 0.02
BHC μg/l 0.05 0.1 0.13 0.015
26 DDT μg/l 0.001 0.002 0.004 0.005
Endosulfan μg/l 0.005 0.01 0.01 0.02
Lindane μg/l 0.3 0.35 0.38 0.4
Chlordane μg/l 0.01 0.02 0.02 0.03
Heptachlor μg/l 0.01 0.02 0.02 0.05
Organophosphate pesticide
27 Parathion μg/l 0.1 0.2 0.4 0.5
Malathion μg/l 0.1 0.32 0.32 0.4
Herbicide
2,4D μg/l 100 200 450 500
28
2,4,5T μg/l 80 100 160 200
Paraquat μg/l 900 1,200 1,800 2,000
29 Gross radioactivity α Bq/l 0.1 0.1 0.1 0.1
30 Gross radioactivity β Bq/l 1.0 1.0 1.0 1.0
31 Bacillus coli MPN/100ml 20 50 100 200
32 Coliform count MPN/100ml 2,500 5,000 7,500 10,000
Note: To evaluate and manage water quality based on the purpose of water use, surface water is categorized as
below:
A1: domestic use and other uses described in A2, B1 and B2 below
A2: use as (1) domestic use after proper treatment, (2) protection of aquatic organisms, and (3) other uses
described in B1 and B2 below
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B1: irrigation or other water use in which equivalent water quality is required, or other uses described in B2
B2: water transportation or other uses in which the requirement for water quality is low

c‐4 Water quality standard for ground water: national technological standard QCVN 09: 2008/BTNMT
The water quality standard for ground water is shown in Table 4-26.
Table 4-26 Water quality standard for ground water (QCVN 09: 2008/BTNMT)
No Parameter Unit Permissible value
1 pH - 5.5 -8.5
2 Hardness (as CaCO3) mg/l 500
3 Total solid mg/l 1,500
4 COD (KMnO4) mg/l 4
5 Amoni (as N) mg/l 0.1
6 Clorua (Cl-) mg/l 250
-
7 Florua (F ) mg/l 1.0
8 Nitrite (NO2-) (as N) mg/l 1.0
9 Nitrate (NO3-) (as N) mg/l 15
10 Sulfate (SO42-) mg/l 400
-
11 Cyanide (CN ) mg/l 0.01
12 Phenol mg/l 0.001
13 Arsenic (As) mg/l 0.05
14 Cadmium (Cd) mg/l 0.005
15 Lead (Pb) mg/l 0.01
16 Chrome (Cr3+) mg/l 0.05
17 Copper (Cu) mg/l 1.0
18 Zinc (Zn) mg/l 3.0
19 Manganese (Mn) mg/l 0.5
20 Mercury (Hg) mg/l 0.001
21 Iron (Fe) mg/l 5
22 Selen (Se) mg/l 0.01
23 Total radioactive activity α Bq/l 0.1
24 Total radioactive activity β Bq/l 1.0
25 E. Coli MPN/100ml ND
26 Coliform MPN/100ml 3
4-39
c-5) Water quality standard for offshore water: national technological standard: QCVN 10: 2008/BTNMT
The water quality standard for offshore water is shown in Table 4-27:
Table 4-27 Water quality standard for offshore water (QCVN 10: 2008/BTNMT)
Permissible value
No
Parameter Unit Aqua-farm and
Marine resort
. protected area for Other areas
or sport area
aquatic organisms
1 Temperature 30 30 -
2 pH 6.5 – 8.5 6.5 – 8.5 6.5 – 8.5
3 Dissolved oxygen (DO) mg/l ≥5 ≥4 -
4 Total suspended solid (TSS) mg/l 50 50 -
5 COD(KMnO4) mg/l 3 4 -
6 Ammonia(NH4+) mg/l 0.1 0.5 0.5
7 Fluorine (F-) mg/l 1.5 1.5 1.5
8 Sulfide (S2-) mg/l 0.005 0.01 0.01
9 Cyanide (CN-) mg/l 0.005 0.005 0.01
10 Arsenic (As) mg/l 0.01 0.04 0.05
11 Cadmium (Cd) mg/l 0.005 0.005 0.005
12 Lead (Pb) mg/l 0.05 0.02 0.1
13 Chrome (Cr3+) mg/l 0.1 0.1 0.2
14 Chrome (Cr6+) mg/l 0.02 0.05 0.05
15 Copper (Cu) mg/l 0.03 0.5 1
16 Zinc (Zn) mg/l 0.05 1.0 2.0
17 Manganese (Mn) mg/l 0.1 0.1 0.1
18 Iron (Fe) mg/l 0.1 0.1 0.3
19 Mercury (Hg) mg/l 0.001 0.002 0.005
20 Oils and grease mg/l 0 0 -
21 Mineral oil mg/l Not detectable 0.1 0.2
22 Phenol (total) mg/l 0.001 0.001 0.002
Organochlorine insecticide
Aldrin+Dieldrin μg/l 0.008 0.008 -
Endrin μg/l 0.014 0.014 -
BHC μg/l 0.13 0.13 -
23 DDT μg/l 0.004 0.004 -
Endosulfan (Thiodan) μg/l 0.01 0.01 -
Lindane μg/l 0.38 0.38 -
Chlordane μg/l 0.02 0.02 -
Heptachlor μg/l 0.06 0.06 -
24 Organophosphate insecticide
4-40
Parathion μg/l 0.4 0.4 -
Malathion μg/l 0.32 0.32 -
Herbicide chemical
2,4D mg/l 0.45 0.45 -
25
2,4,5T mg/l 0.16 0.16 -
Paraquat mg/l 1.80 1.80 -
26 Total radioactive activity α Bq/l 0.1 0.1 0.1
27 Total radioactive activity β Bq/l 1.0 1.0 1.0
MPN/100
28 Coliform 1,000 1,000 1,000
ml
Note: En dash (-): No stipulation
d) Environmental standard for waste applicable to thermal power projects

d‐1 Laws related to solid waste management
The laws related to solid waste management include those listed below:
・Decree 59/2007/ND-CP dated April 9, 2007 was issued for solid waste management
・MONRE Circular 12/2006/TT-BTNMT dated December 26, 2006 was issued, offering guidance and
procedure for the application, registration and permission for hazardous waste management.
・Vietnamese standard TCVN 6696:2000－solid waste－common requirements for sanitary landfill and
environmental protection
・Vietnamese standard TCVN 6705:2000－non-hazardous solid waste－classification
・Vietnamese standard TCVN 6706:2000－hazardous waste－classification
・Vietnamese standard TCVN 6705:2009－non-hazardous solid waste－classification
・Vietnamese standard TCVN 6706:2009－hazardous waste－classification
・Vietnamese standard TCVN 6696:2009－solid waste－common requirements for sanitary landfill and
environmental protection
e) Environmental standards for noise applicable to thermal power projects

e‐1 Environmental standard for noise: national technological standard QCVN 26: 2010/BTNMT
Environmental standard for noise is shown in Table 4-28.
Table 4-28 Environmental standard for noise (dB(A))
No. Area 6-21 o’clock 21-6 o’clock
1 Special area 55 45
2 Normal area 70 55
Special area: medical facilities, libraries, nursery schools, schools, churches, assembly halls and temples
within their fences, as well as areas specially designated
Normal area: areas including apartments, single-family or adjacent homes, hotels, rest houses and
administrative institutions
4-41
e‐2 Standard for permissible noise levels at workplaces: TCVN 3985: 1999
The standard stipulates the maximum permissible noise levels for workspaces in factories and offices. It is
applied to control the noise level during the work process for the worker subjected to impacts from equipment
and machines. Generally, the permissible noise level must not exceed 85dBA during a work shift of 8 hours or
maximum of 115dBA. Throughout the period, values below must not be exceeded:
・For 4 hours, the permissible noise level is 90dBA.
・For 2 hours, the permissible noise level is 95dBA.
・For 1 hour, the permissible noise level is 100dBA.
・For 30 minutes, the permissible noise level is 105dBA.
・For 15 minutes, the permissible noise level is 110dBA.
・Maximum of 115dBA must not be exceeded.
・Except for working hours of a work day, the exposure to noise must be less than 80dBA.
f) Environmental standard for vibration applicable to thermal power projects

f‐1 Environmental standard for vibration level: national technological standard QCVN 27: 2010/BTNMT
The environmental standard for vibration level is shown below. The sources of vibration or impact during
construction work must not exceed the specified values in Table 4-29.
Table 4-29 Maximum permissible vibration acceleration during construction work

Permissible vibration
No. Area Hours
acceleration, dB
6－18 o’clock 75
1 Special area
18－6 o’clock Base level
6－21 o’clock 75
2 Normal area
21－6 o’clock Base level
The sources of vibration or impacts during production, commercial or service activities must not exceed the
specified values in Table 4-30:
Table 4-30 Maximum permissible vibration acceleration during production, commercial or service activities
Hours and permissible vibration acceleration, dB
No. Area
6 - 21 o’clock 21 - 6 o’clock
1 Special area 60 55
2 Normal area 70 60
The vibration acceleration levels specified in Tables 4-29 and 4-30 are:
・ Levels measured during stable vibration, or
・ Average of the maximum values measured at the time of cyclic or intermittent vibrations, or
・ Average of values obtained by taking ten measurements at five second intervals when vibration is not
4-42
steady but occurred haphazardly, or equivalent (L10).
The definitions of special area, normal area and base level are given below:
Special area: medical facilities, libraries, nursery schools, schools, churches, assembly halls and temples
within their fences, as well as areas specially designated
Normal area: areas including apartments, single-family or adjacent homes, hotels, rest houses and
administrative institutions
Base level (background level): vibration acceleration level measured in the area to be evaluated, during the
period when no production, commercial, service or construction activities are conducted.
3) Outline of environmental impact assessment (EIA) in Vietnam

The outline of the implementation of EIA under the Law on Environmental Protection (55/2014/QH13) of
Vietnam, enforced in January 2015, is given below:
a) Projects for which EIA must be implemented
・ Projects that require approvals of the national assembly, government or prime minister
・ Projects that use designated natural reserves, national parks, historical or cultural sites, world heritages,
biosphere reserves and scenic sites
・ Projects that might have a negative impact on the environment
b) Implementation of EIA
・ The project implementing entity can implement EIA on its own or request a consultation firm to conduct
EIA. In either case, the project implementing entity will take legal responsibility for the result of EIA.
・ EIA must be conducted in the preparatory stage of a project.
・ The result of EIA will be included in the EIA evaluation report .
・ The costs for the preparation of EIA report and review are to be paid from the invested fund of the project
implementing entity without fail.
c) Recreation of EIA reports

The project implementing entity must prepare EIA reports again if any of the conditions below applies:
・ The project has not started within 24 months from the time of the issuance of the approval decision
document for the EIA evaluation report.
・ The project takes place in a location different from the project implementation site indicated in the approved
EIA reports.
・ The scale of the project is expanded from that stated in the approved EIA reports and it causes a change in
operating capacity and technologies, which result in the worsening of environmental impacts.
d) Main contents in EIA reports

・ Background of the establishment, the project implementing entity, authority approving the project, and
method for implementing EIA evaluation.
・ Selection of work method and evaluation of work and activities for a project that might have negative
impacts on the environment
4-43
・ Explanations on the natural environment of the project implementation site and surrounding area, evaluation
of the current socioeconomic environment, and the suitability of the project location
・ Estimation and evaluation of impacts from the waste generated in a course of project implementation.
Estimation and evaluation of impacts on environment and people’s health
・ Estimation and evaluation of the project’s risks on environment and people’s health and risk management
measures
・ Waste disposal
・ Measures to control impacts on the environment and people
・ Consultation results
・ Environmental management and audit program
・ Construction costs for environmental protection facilities and implementation costs of environmental
impact reduction measures
・ Methods for implementing environmental protection measures
e) Authorities to review EIA reports

・ MONRE reviews EIA reports for projects below:
・ Projects for which the national assembly, government or prime minister decides the investment
・ Project that span over multiple fields or regions, excluding classified projects associated with national
defense or public safety
・ Projects specified by the government
・ Each ministry or equivalent agency review EIA reports of projects that are within their power of approval
excluding projects described in a) and b) above
・ Ministry of Defence and the Ministry of Public Security review EIA reports of projects that are within their
power of approval and classified projects associated with national defense or public safety
・ Provincial people’s committee review EIA reports for projects that invest in respective province, excluding
projects described above.
f) Review of the EIA report

・ The representative or head of the organization subject to review must review the EIA report with the
consultation of the review committee or relevant organizations and take legal responsibility for the review
result.
・ As needed, the reviewing institution of the EIA report must carry out on-site verification and hear opposing
views from agencies, organization and specialists of different fields.
・ If there is a need for corrections or additions during the review period, the reviewing institution must notify
the project implementing entity to such effects in writing.
g) Approval of the EIA report

・ Within 20 days of receiving EIA report that is corrected and supplemented as pointed out by the review
committee, the head of the reviewing institution must consider and make decision regarding the approval of
the EIA report. If the report is to be rejected, a response with its reasoning must be given to the project
4-44
implementing entity in writing.
h) Project implementing entity’s responsibility after the approval of EIA report

・ Comply with and implement the approval decision document for the EIA report.
・ If environmental impacts are worse than indicated in the approved EIA report due to change in scale,
production capacity or technologies, but not to the level that requires recreation of EIA reports under Article
20, clause 1, c) of the Law on Environmental Protection, the project implementing entity may start the
project after explaining the situation to the approving authority and receiving the consenting document from
the approving institution.
i) Project implementing entity’s responsibilities prior to the operation of the project

・ Implement environmental protection measures based on the approval decision document for the EIA report.
・ For large-scale projects as stipulated by governmental provisions and with potential for negative
environmental impact, the environmental protection work must be carried out and its result reported to the
EIA report approving authority. These projects cannot be operated until EIA report approving authority
inspects the environmental protection work and confirms the completion of the work.
j ) Responsibilities of the EIA report approving authority

・ Take legal responsibility for the review result and approval decision of EIA report
・ Within 15 days of receiving the project implementing entity’s report for the completion of the
environmental protection work, the EIA report approving authority must inspect the completed
environmental protection work and issue a confirmation of the completion of the work. If the analysis of
environmental indexes is complicated, the deadline for issuing the confirmation of such environmental
protection work completion can be extended, but not more than 30 days.
4) Environmental and social impacts from the project implementation

Here, issues and necessary measures for the construction of ultrasuper critical coal-fired thermal power plants are
examined, by using the checklist for thermal power given in the JICA Guidelines for Environmental and Social
Considerations (April 2010). The items to pay special attention in terms of environmental and social
considerations are as follows:
a) Impacts on ecosystems (cutting of mangroves)

A mangrove wetland exists along the coast near the Project site, but it is not designated as a special protection
area. According to the World Bank’s safeguard policies, mangroves are considered to be a natural habitat.
Natural habitats are classified into Categories A and B, and no financing will be approved if a grave change
or deterioration of natural habitat will occur in Category A. For Category B, if it is decided that the impact is
not grave, there is no alternative, and overall benefits from the project are much greater than the
environmental costs, financing is approved with conditions to incorporate appropriate mitigation measures.
With this in mind, a proposal has been made to move the site toward inland in order to minimize the
4-45
environmental impacts, from the usual site for power plants which usually face a coast. Natural forests
including mangroves are managed by the Provincial People’s Committee of Bac Lieu and for any forest
development in excess of 20ha, a notification to change the land use must be submitted and the approval of
the prime minister obtained. Any work must proceed by checking with the Provincial People’s Committee of
Bac Lieu that oversees the regional development. The people’s committee received the proposal to move the
site inland to protect mangroves favorably.
b) Impacts on ecosystems (thermal effluent)

During the plant operation, a large quantity of cooling water will be discharged into the sea; thus, the effect
that thermal effluent and sea water temperature rise have on the ecosystems must be examined on the
continuous basis starting in the EIA stage.
c) Pollution measures (air)

At this point, there is no large factory that causes air pollution in the area. It will be necessary to implement
appropriate measures to control air pollution from transporter vehicles during construction, flue gas during
operation, coal dust from coal transporting facilities and dust from ash disposal sites.
d) Pollution measures (water quality)

On the northern and western sides, shrimp farms have been developed. In shrimp farming, insecticide and
herbicide are used and sites are emptied and disinfected using lime regularly, producing a large quantity of
polluted water. The water is then discharged to the sea outside of the levees.
According to the residents, the quality of the water taken has worsened due to effluent from the factories
upstream. It has caused the shrimp harvest to go down but they don’t know who to turn their anger on. If the
power plants are is to be developed, water quality before the development must be examined in an open
manner with the coordination with the people’s committee so that the project will not be blamed for the water
quality deterioration.
e) Pollution measures (noise)

Even through the measured noise level around the power plant has not been obtained, it was confirmed that
there is no large source of noise during the field study. With a residential area along the river on the eastern
side of the power plant, the noise level near the current boundary must be checked and evaluated. In some
cases, the reduction of nighttime work, construction of partial sound barrier in the adjacent area and other
measures might be required.
f) Pollution measures (waste)

Coal ash and gypsum will be produced through the operation of the Project. Coal ash will be transferred to
the disposal site using the slurry method. While the capacity of the disposal site seems sufficient, further
examination will be needed to reduce the size of the ash disposal site with the plans to reduce waste by
utilizing coal ash and gypsum in bricks, etc.
4-46
g) Social environment (resettlement of residents)
The residents subject to resettlement due to construction on the site live mainly along the river. In other areas,
there are shrimp monitoring huts. Some houses seem to make living by serving as a rest area for bikers.
Based on the field survey, those subject to resettlement due to the Project will be 30 households (about 120
persons) in the case of 30,000DWT, and 140 households (about 560 persons) in the case of 10,000DWT.
There are many aqua-culture ponds and salt fields in this area, therefore, when the site is prepared before the
construction work, houses and aqua-culture ponds must be relocated. Thorough consideration is needed
during the EIA stage.
h) Social environment (work environment)

The area around the site is a poor area where it is hard to obtain drinking water since wells only produce sea
water. It is necessary to develop infrastructures for the area in order to secure food, clothing and housing for a
large number of workers as well as for locally hired workers during construction and staff in charge of
operation. It is important to build hospitals to prepare for any injury or diseases.
4-47
(5) Responsibilities of the Host Country for the Realization of the Project
The project is categorized as a project that require the preparation of EIA report, according to Vietnamese
decrees, and the implementing entity must hold preliminary meetings with relevant ministries and agencies
such as MONRE and with people’s committee to clarify the specific steps for conducting EIA.
Table 4-31 List of projects required to submit EIA report (Excerpt)

Appendix
List of projects required to submit EIA report
(Announced along with Decree No.21/2008/ND-CP dated Feb. 28, 2008)
No. Project Scale
1 National projects and programs that are required to submit EIA to the All
national assembly for approval, as stipulated in the national assembly
resolution (No.66/2006/NQ11) dated Jun. 29, 2006.
2 Projects that use, in part or in entirety, natural reserves, historical or cultural All
heritage, world heritages or biosphere reserves, or famous scenic sites,
registered or unregistered, that are protected under the decision of a
province or government-run city.
3 Projects that might cause grave impacts on a river basin, coastal area, or All
water resources in a biologically diverse area under protection.
(omitted）
Construction projects related to energy and radiant energy

38 Nuclear reactor construction projects All
39 Manufacturing, business or service facility construction projects that use All
radioactive materials or generate radioactive waste
40 Projects related nuclear PP or thermonuclear fusion power generation All
41 Thermal power generation projects 30MW
or more
(the rest omitted)
Source: Announced along with Decree No.21/2008/ND-CP dated Feb. 28, 2008
4-48
Chapter 5 Financial and Economic Evaluation
(1) Project Cost Estimation
At this point, the Vietnam side has not decided between the supercritical (SC) plants and ultrasuper critical (USC)
plants, or between the 30,000DWT coal ship and 10,000DWT coal ship for the Project. These matters will be
decided after the thorough consideration from the viewpoint of economy, etc.
The generating capacity is planned to be 1,200MW (600MW x 2 units) per phase, with a total of 3,600MW for all
three phases; however the planned capacity may be altered if it is economically and technologically feasible. The
larger capacity has more advantages in terms of economy, and the proposal made with a large capacity of
1,000MW will give Japanese companies more reason to participate in the Project since Chinese and Korean
companies have less experience with large-capacity power plants. In light of this, this study examined six cases as
shown below:
1) Construction cost
The construction cost was calculated by referring to the contract amounts for recent and similar coal-fired thermal
power plants in Vietnam and other Southeast Asian countries. The result is shown in Tables 5-1 and 5-2. Phase 1
which is covered in this study aims to develop common facilities serving all the power plants (substation, power
and harbor, land preparation, etc.) and includes the cost for those facilities. Therefore, costs listed under Phase 1
are higher in comparison to other similar projects.
Table 5-1 Estimated construction cost for Bac Lieu power plants (Phase 1) with the 30,000DWT ship plan
(US$ Million)
Item 600MW×2 600MW×2 1000MW×1
SC USC USC
1 635 646 523
equipment

3 658 658 501

6 82 82 82
compensation
9 Total 2,379 2,398 1,987
Source: Prepared by Stud Group

5-1
Table 5-2 Estimated construction cost for Bac Lieu power plants (Phase 1) with the 10,000DWT ship plan
(US$ Million)
Item 600MW×2 600MW×2 1000MW×1
SC USC USC
1 635 646 523
equipment

3 658 658 501

6 94 94 94
compensation
9 Total 2,268 2,287 1,876
The Project requires the construction of transmission lines from the power plants to the existing main substations;
however the cost for the work is borne by NPT and is therefore not included in the figures above.
5-2
Table 5-3 shows the breakdown of each cost to the foreign funds and domestic funds for Case 2. The ratio is
similar in other cases.
Table 5-3 Breakdown of construction cost for Case 2: USC 600MW×2 units, 30,000DWT plan
Foreign portion Domestic portion Total
Item
(US$ million) (VND billion） (US$ million)
483 3,470 646
1 equipment
2 Steam turbine & generator 376 1,804 461
Other equipment & civil engineering

457 4,273 658
3 work
4 Port system 39 4,639 257

6 0 1,734 82
compensation
8 Contingency 141 1,630 218
9 Total 1,554 17,930 2,398
Exchange rate; US$1=VND21,246

5-3
2) Running cost
The running cost includes those listed below:
a) Fuel cost
The Project assumes coal import from Indonesia or Australia. In this calculation, assumptions were made that coal
with a higher calorific value of 5,100kcal/kg is imported at US$95/ton.
b) O&M cost
Decision 2014/2007/QD-BCN of Vietnam stipulates that the figure obtained by multiplying the power generation
facility and construction cost by 3.5% is to be used as O&M cost.
c) Depreciation
Depreciation was calculated by assuming the straight-line method, residual value of zero and depreciation period
of 20 years.
d) Interest cost
The interest rate of JBIC’s buyer’s credit or that of the yen loan as of now is used.
e) Corporate tax
The tax rate of 0-20% is used for respective fiscal year by taking into consideration the preferential taxation for
thermal power plants.
(2) Result of the Preliminary Financial and Economic Analyses

The preliminary financial and economic analyses in this study are conducted according to Decision
2014/2007/QD-BCN, which stipulates the methodology of financial and economic analyses for power generation
projects in Vietnam. The economic analyses such as Economic Internal Rate of Return (EIRR) are carried out first,
followed by the calculation of Financial Internal Rate of Return (FIRR) and tariff estimation.
1) Economic analyses
According to Decision 2014/2007/QD-BCN of Vietnam, Economic Internal Rate of Return, Cost-Benefit Ratio
and Net Present Value must be calculated by considering the revenue from electricity sales as an economic
benefit.
5-4
a) Assumptions
In economic analyses, the calculations are done for several cases, assuming the use of JBIC’s buyer’s credit (BC).
Terms and conditions of the BC are determined based on the provisions of the OECD Arrangement.
The loan amount should not exceed the value of an export contract and excludes down payment. While export
loans, in principle, do not apply to local costs, such costs may be covered, full or partially, provided that their
amount does not exceed down payment ( as well as 15% of the export value).
The maximum repayment period differ depending on importing countries, goods and services. When considering
a coal-fired power plant, the maximum repayment could be 12 years. Generally, the sum of principal and interest
has to be repaid, in general, in equal, semi-annual installments.
Commercial Interest Reference Rates (CIRRs) at the time of commitment are applied. In the case where interest
rate is to be fixed at the time of tender, CIRR + 0.2% is applied. The risk premium shall be charged, in addition to
CIRRs, to cover the risk of non-repayment.
The main assumptions used for the calculation are shown in Table 5-4.
Table 5-4 Main assumptions
Item Value Remarks
Tariff US¢9.1/kWh A higher value than other coal-fired power plants considering
that imported coal is used and common facilities for the entire
plants are developed during Phase 1
Annual operation time 6,500 hr./year Stipulated in Decision 2014/2007/QD-BCN
Thermal efficiency (SC) 41.08% Calculated based on the assumed specifications and properties
of coal assumed to be used
Thermal efficiency 41.88% Calculated based on the assumed specifications and properties
Thermal efficiency 41.96% Calculated based on the assumed specifications and properties
Auxiliary power ratio 7.8% The value from the similar projects is used
Escalation rate N.A. Not considered based on Decision 2014/2007/QD-BCN
Interest rate 2.19% Standard Yen-denominated interest rate for Vietnam
Redemption period 12 year Standard Yen-denominated interest rate for Vietnam
Discount Rate 10% Stipulated in Decision 2014/2007/QD-BCN
Debt Equity ratio 7:3 The value from the similar projects is used

5-5
b) Calculation result
The result of the calculation with these conditions is given in Table 5-5. In all cases, EIRR is higher than 10%, the
hurdle rate stipulated by the decrees, the Benefit Cost Ratio is greater than one (1) and NPV is a plus figure; thus
the Project is judged to have economic value.
When 30,000DWT cases and 10,000DWT cases are compared, 10,000DWT cases have higher EIRR since the
cost for construction and regular dredging is less.
Table 5-5 EIRR, B/C and NPV
Case 1 Case 2 Case 3 Case 4 Case 5 Case 6

600MW×2 600MW×2 1,000MW×1 600MW×2 600MW×2 1,000MW×1
SC USC USC SC USC USC
30,000DWT 10,000DWT
Economic
Internal Rate of 10.01% 10.11% 10.27% 10.53% 10.63% 10.91%
Return (EIRR)
Benefit Cost
1.00 1.00 1.01 1.02 1.03 1.04
Ratio (B/C)
Net Present
2 23 47 104 125 150
Value (NPV)
5-6
2) Financial analyses
a) Conditionality
EVNGenco2 is planned to be the organization responsible for the development of the Project. In this study, the
calculations are done for several cases, assuming the use of JBIC’s buyer’s credit or yen-loan. It was revealed
through the interview with JICA that the condition for the yen-loan is the adoption of ultrasuper critical plants
which have better generation efficiency than supercritical plants, less environmental impact, and higher
construction cost. Since the probability of obtaining yen-loan is small for supercritical projects which are currently
formulated in Vietnam, the calculation was done for the cases that use buyer’s credit from JBIC. For ultrasuper
critical plants, the calculation was done for both the buyer’s credit and yen-loan.
The Japanese government decides the loan conditions based on the income level, etc. for the borrower country.
Since Vietnam is considered a low-income country, the specific loan conditions are as follows:
Table 5-6 Major terms and conditions of Yen-loan
Source: JICA
The loan conditions include General Terms, Preferential Terms and STEP (Special Terms for Economic
Partnership), and the terms to be applied will be determined based on the wish of the borrower country, the
Vietnamese government, and the Japanese government’s evaluation of the Project. USC uses highly efficient
technology with small a environmental load, which Japan takes pride in, and STEP might be applied. However in
this study, trial calculation was done with the General Terms, using the interest rate of 1.40%, repayment period of
30 years and grace period of 10 years.
5-7
b) Calculation result
The financial analysis result using the conditions described in the economic analyses section except for the
conditions for yen loan is shown in Tables 5-7 and 5-8. The yield of Vietnam’s 10-year government bonds has
gone down from about 12% in 2012 to 7.2% as of the end of December 2014. Considering the yield of 10-year
government bonds as the hurdle rate, FIRR is greater than this value in all cases, making the Project viable from
the financial point of view.
Table 5-7 EIRR, and NPV with the 30,000DWT ship plan

600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1
SC USC USC USC USC
Financial Internal
Rate of Return 15.47% 15.68% 16.03% 23.86% 24.24%
(FIRR)
Net Present Value

484 507 447 906 777
(NPV)
Table 5-8 FIRR, and NPV with the 10,000DWT ship plan

600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1
SC USC USC USC USC
Financial Internal
Rate of Return 16.58% 16.79% 17.41% 25.06% 25.70%
(FIRR)
Net Present Value

558 581 520 961 832
(NPV)
5-8
c) Estimated tariff
Vietnam’s decrees require FIRR to be 15% or lower. With the estimated tariff of US¢9.1/kWh, FIRR goes up if
low-interest loans such as buyer’s credit and yen-loan is used, and Table shows the electric tariff when FIRR is
assumed to be 15%. With the use of low-interest loans from Japan, the interest cost can be reduced and electric
tariff lowered. In addition to low interest rate, the yen-loan grants a grace period of 10 years, which could defer
the financial burden of the load repayment for the future and help lower the electric tariff even further.
Table 5-9 Tariff when FIRR is 15% (US¢/kWh)

600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1
SC USC USC USC USC
9.01 8.97 8.90 7.77 7.71

600MW×2 600MW×2 1000MW×1 600MW×2 1000MW×1
SC USC USC USC USC
8.81 8.77 8.67 7.62 7.54
5-9
Chapter 6 Planned Project Schedule
Figure 6-1 shows the planned Project schedule:
Figure 6-1 Planned Project schedule
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Approval of revised PDP7
Site Masterplan
Feasibility study (FS)
Environmental and social
impact assessment
Financing arrangement
Acquisition of licenses and
permissions
Consultant selection
Infrastructure construction and
site work
EPC bid
Unit1 Unit2
Construction and installation
work
Coastal work (dredging, levee,
etc.)
(1) Approval of revised PDP7

Before EVNGenco2, which will be the main implementing entity of the Project, can conduct a feasibility study, the
PDP7 which is currently being revised must be concluded. Based on the interviews with IE and others, it is likely to
be approved by the government after the second quarter of 2015.
(2) Site Masterplan

EVNGenco2 shall conduct the site masterplan, which will be a kind of pre-feasibility study in Vietnamese method,
and submit to the government in order to fix the schedule in the revised PDP7. Necessity of the project, site location,
fuel, technology, grid connection and support from local people’s committee level etc are shown in the site
masterplan.
(2) Feasibility study

This study is a preliminary study to confirm the feasibility and thus, before the Project is realized, more detailed
feasibility studies regarding its commercialization will be required. After the revised PDP7 is approved, the decision
regarding the layout, optimization of the plant performance and reevaluation of the economic aspect will be done,
taking about a year.
6-1
(3) Environmental and social impact assessment
All the international financial institutions that offer financing have their own guidelines regarding environmental
and social considerations; therefore impact assessments must be performed in accordance with such guidelines.
(4) Financing arrangement

The entity responsible for the implementation of the Project will be EVNGenco2; thus if funds from Japan are used
for the development, it will be by either yen loan assistance or buyer’s credit (BC). Based on the results of the
detailed feasibility study and environmental and social impact assessment, the amount to be covered by financing,
conditions, payment period and other matters will be negotiated.
(5) Acquisition of licenses and permissions

Various licenses and permissions must be obtained from related ministries and agencies and the Provincial People's
Committee of Bac Lieu before commencing the acquisition of the land or site preparation work.
(6) Consultant selection

The consultants offer consultation regarding the preparation of EPC bid specifications, engineering, management of
EPC work, and the process, quality and safety management during the construction period.
(7) Infrastructure construction and site work

Prior to the start of the construction and installation work, the preparatory work for the planned power plant
construction site will be done, including filling and leveling of the land as well as the construction of the
infrastructures such as the roads to the power plant, power sources for the construction work and site office.
(8) EPC bid

Based on the EPC bid specifications prepared by the consultants selected for the job, an international competitive
bidding is done to select the EPC contractor. In the Project, the EPC bidding is assumed to be the type of bidding
where Japanese equipment manufacturers or trading firms function as a wrapper.
(9) Construction and installation work

Since it is coal-fired thermal power generation plants, the standard construction period of four and a half years is
assumed. It compares favorably enough to the work period seen in Vietnam, as the standard construction period for
coal-fired power plants in the country is considered 52 months.
(10) Coastal work

The dredging of the ocean bottom, construction of levees and docks for coal ships and other work will be carried
out along with the EPC construction and installation work, in order to ensure that coal ships can dock at the power
plant. The construction period is assumed to be two and a half years even though the work period can differ
somewhat depending on the work volume for 30,000DWT and that for 10,000DWT. The work period will be
examined more closely during the feasibility study that will be conducted in the future.
6-2
Chapter 7 Implementing Organization
(1) Outline of the Implementing Organization
1) EVN: Vietnam Electricity

EVN was established in 1995 as a state-run company to integrate the power sectors and operate power generation,
transmission and distribution systems in a unified manner under the electricity policy set by the government. After
the effectuation of the New Electricity Law in 2004, EVN’s budgets have been strictly separated from the
government budget, and EVN receives no funds from the government except for some subsidies. Ever since the
Law on State Enterprise was repealed in July 2010, it has been operated as a limited liability company owned
solely by the government.
EVN as a group owns and manages major power plants, load dispatching offices, transmission companies,
distribution companies, power facility inspection and design firms, while preparing power source development
plans and proposed amendments to tariff. The subsidiaries are divided into three types: “directly controlled
companies” that EVN owns totally and plans their budgets; “financially independent companies” that are owned
by EVN but have self-supporting accounting system; and “JSC (Joint Stock Company)” whose stock is partly
owned by EVN. The subsidiaries of EVN and their roles are shown in the figure below:
Figure 7-1 List of EVN group companies
7-1
Figure 7-2Roles of EVN group companies
【Generation】 Directly controlled EVN’s Financially independent EVN’s IPP・BOT

PVN,.
GENCOs Power companys VINACOMIN, etc.
Electric Power Trading Company (EPTC)

【Dispatch】＜EVN’s directly controlled company＞
National Load Dispatch Center (NLDC)
【Transmission】＜EVN’s financially independent company＞

National Power Transmission Corporation (NPT)
＜EVN’s financially independent company＞

【Distribution】 5 Power Corporations (Northern, Central, Southern, Hanoi, and Ho Chi Minh City)
【Retail】 Commune business entity／Local Distribution Unit (LDU)
Customers
a) Power generation companies

The power generation companies under EVN include directly controlled companies such as Hoa Binh
Hydropower Company, and financially independent companies such as Genco1, Genco3 and Genco2 that is
planned to be the developer of the project.
b) EPTC：Electric Power Trading Company

The Electric Power Trading Company (EPTC) is under EVN, and acts as a window of EVN’s electricity trade
such as the conclusion of PPAs, and will take a role of a sole buyer in the power market in the future.
c) NLDC: National Load Dispatching Center

As one of EVN’s directly controlled companies, NLDC operates the load dispatch system by coordinating with
Regional Dispatch Centers located in the northern, central and southern regions of the nation. The main duties of
NLDC are the operation of the 500kV, 220kV and 110kV systems and issuance of operation orders to power
plants, thus playing a core role in coordinating supply and demand for northern and southern Vietnam. NLDC is
also responsible for the operation of the competitive power generation market that launched in July 2011.
d) NPT: National Power Transmission corporation

NPT was established in July 2008 by integrating four transmission companies that operated in the northern region
(PTC1), north-central region (PTC2), south-central region (PTC3) and southern region (PTC4). NPT is under the
direct control of EVN, and operates and maintains the 220kV - 500kV transmission facilities for the entire
Vietnam. It also is responsible for the construction investment for plans to expand and enhance the transmission
7-2
facilities.
e) Distribution and retail company (PC: Power Corporation)

There are five Power Corporations in the different regions on the country (Northern, Central, Southern, Hanoi
City and Ho Chi Minh City Power Corporations) and they are financially independent from EVN. They supply
power to their respective regions.
2) Financial status of EVN

Pushed by increasing electricity sales, their sales jumped from about 65 trillion VND in 2008 to about 178 trillion
VND in 2013, about 2.7 times greater. On the other hand, the net debt increased significantly from about 139
trillion VND in 2008 to about 360 trillion VND in 2013.
Vietnam’s power supply heavily relies on hydroelectric power which accounts for 40% of electric power in the
country. There was a decline in rainfall amount in 2010, resulting in decline in power produced by hydroelectric
power plants. Faced with power shortage, EVN had to operate the coal-fired and oil-fired power plants with a
higher operation cost and import power from China, running a deficit.
Table 7-1 Profit-and-loss statement of EVN

Unit: Million VND
2008 2009 2010 2012 2013
Total Revenue 64,797,607 79,999,251 98,417,440 149,003,829 177,850,281

Net Sales 64,715,085 79,955,153 98,410,146 149,002,366 177,849,938
Costs of Goods Sold 54,814,309 66,929,662 85,003,002 116,008,041 144,353,843

Gross Profit 9,900,776 13,025,491 13,407,144 32,994,325 33,496,095
Net Profit from Operation 1,076,604 2,803,506 (1,079,798) 8,510,295 10,083,551

Other Profits 531,405 10,643 205,791 919,045 10,369,889
Gross Profit before Tax 1,878,471 3,491,662 (662,794) 9,552,737 10,369,889

Corporate Tax 382,028 375,521 216,041 584,323 1,009,159
Net Profit after Tax 1,496,443 3,116,141 (878,835) 8,697,179 9,370,730
Source: Source: prepared by Study Group based on the EVN Annual Report
7-3
Table 7-2 Balance sheet of EVN
Unit: Million VND

2008 2009 2010 2012 2013
Current Assets 50,170,544 61,935,158 76,266,504 78,500,000 87,994,881

Non-Current Assets 154,192,248 191,787,229 233,869,631 367,538,673 428,640,780
Total Assets 204,362,792 253,722,387 310,136,135 446,038,673 516,635,661

Current Liabilities 30,373,244 43,245,794 65,429,155 79,808,371 101,612,928
Non-Current Liabilities 108,173,055 139,448,343 174,269,898 230,766,952 258,137,080

Total Liabilities 138,546,299 182,694,137 239,699,053 310,575,323 359,750,008
Owner's equity 62,593,520 65,867,792 64,595,654 128,786,323 149,928,090

Minority shares 3,222,973 5,160,458 5,841,428 6,677,027 6,957,563
Total Liabilities and Owner's Equity 204,362,792 253,722,387 310,136,135 446,038,673 516,635,661
Source: prepared by Study Group based on the EVN Annual Report
EVNGenco2 is newly established in June 2012 to be financially independent from EVN, and its financial situation
is probably tight on its own as is the case with EVN; however it is expected to recover in 2016 - 2017 thanks to
operational efficiency improvement and the loan program by ADB to support GENCOs.
Since foreign banks and local banks remain willing to offer loans to large state-run companies such as EVN and
PVN and the level of public bonds including government-guaranteed bonds is kept at an appropriate level, the
financing arrangement is likely to be possible.
(2) Vietnam’s Organizational Scheme for the Project Implementation

For the implementation of the Project, the revisions to PDP7 which is currently examined by IE must be formally
approved by the Vietnamese government. In this study, the Study Group had visited NPT to check the review
status of the transmission lines, but NPT was unable to review anything at that point since the formal decision had
not been made on the PDP revision. However, their position was that they will review the transmission line plan
after the formal decision and take measures without any problem. After the formal decision is made on the PDP7
revisions, the progress will be made on the Project toward the start of the commercial operation, by collaborating
with relevant organizations.
7-4
(3) Evaluation of the Vietnamese Implementing Organizations’ Ability and
Measures (if insufficient)

EVNGenco2 is the likely implementing organization of the Project. It has been engaged in coal-fired thermal
power generation since the 1970s and has tackled coal-fired power technology by sending its engineers to Russia
to be trained on such technology in the early stage of its involvement, etc.
Currently, EVNGenco2 plays a core role in the O&M technology in Vietnam. When other power providers in
Vietnam develop a new power plant, they send their operators and technicians to Pha Lai power plant for OJT
before the start of operation. Pha Lai power plant are subsidiaries of EVNGenco2. The coal-fired thermal power
facilities owned by EVNGenco2 are listed in the table below:
Table 7-3 Power plant outline of EVNGenco2

Steam Main equipment maker Start of
Power plant name Output Fuel
condition Boiler Turbine operation
Pha Lai１*1 110MW×4 (Made in Russia) 1983 -1986
Mitsui
Pha Lai２*1 300MW×2 GE 2000 - 2004
Domestic Babcock
coal Dongfang
*2
Subcritical Fuji Electric
Hải Phòng1/2 300MW×2 (anthracite Electric 2009
Systems
coal) Corp.
Dongfang
*2
Fuji Electric
Hải Phòng3/4 300MW×2 Electric 2014
Systems
Corp.
*1 Owned by Hai Phong Thermal Power Joint Stock Co. EVNGenco2 owns 51% of stock of the company.
*2 Owned by Pha Lai Thermal Power Joint Stock Co. EVNGenco2 owns 51% of stock of the company.
EVNGenco2 works to obtain necessary operational techniques by receiving O&M training from the EPC
contractor before the start of operation when a new power plant is developed and by conducting a trial operation
of such power plant with the EPC contractor and making it part of the OJT. After the start of operation,
EVNGenco2 operates such power plant in accordance with the Vietnamese laws by conducting an environmental
monitoring every quarter term and submitting the measured results to the competent ministries and agencies.
Hence, EVNGenco2 is considered to have sufficient technical level and ability to be the implementing
organization for the Project.
The plan for the Project is to adopt either the supercritical plant or ultrasuper critical plant, and the technological
and operational shift such as that from the drum boiler to the once-through boiler will be necessitated. However in
7-5
Vietnam, Vinh Tan 4 coal-fired supercritical power project by EVNGenco1 and Duyen Hai 3 extension
supercritical coal-fired power project by EVNGenco3 are planned to start operation in 2018. Since the Project is
planned to start operation around 2023, Vietnam would have operated supercritical plants for about five years.
Considering that the technical difference between the operation of the supercritical plant and ultrasuper critical
plant is not so great, the technical shift in this Project to supercritical or ultrasuper critical plants might go
smoothly.
7-6
Chapter 8 Technical Advantages of Japanese Company
(1) Expected Forms of Participation for Japanese Company
For this Project, an informal decision has been made that EVNGenco2 will be the Phase 1 developer. The
participation by a wide range of Japanese companies is expected for the Project such as heavy electric machinery
makers that have the ample record for delivering high-efficiency coal-fired thermal power generation facilities
inside and outside of Japan, commercial firms acting as an EPC contractor to comprehensively engage in design,
procurement and construction of those facilities, engineering companies, general construction companies to
conduct civil construction work, etc.
Japanese commercial firms have long procured coal of various grades from a wide range of sources throughout
the world and supplied it to coal-fired power plants in and out of Japan in addition to performing their duties as an
EPC contractor. Their participation is anticipated as a fuel supplier to the Project.
Vietnam has no experience operating supercritical or ultrasuper critical high-efficiency power plants at this point;
thus to operate, maintain and manage cutting-edge power plants, operational support by Japan’s power companies
might become an option since they have owned, operated, maintained and managed high-efficiency coal-fired
thermal power plants, and have accumulated knowhow particular to high-efficiency coal-fired thermal power
generation.
If common facilities are fully developed during Phase 1 with the technological help and capital from Japan,
Japanese commercial firms and power companies might feel comfortable participating as a project entity in
Phases 2 and 3 which are planned to be developed as BOT/IPP.
(2) Advantages of Japanese Company for the Project Implementation

1) Technological advantages
With Japan’s low rate of energy self-sufficiency, it has to rely on fuel imported from overseas, and as a result, it
has a keen interest in highly efficient use of energy and has tackled the technological development for
high-efficiency thermal power generation. Prompted by the worldwide concern for global warming in recent years,
Japan has continuously worked to develop technology for environmental protection including those for ultrasuper
critical power generation, flue-gas desulfurization equipment and electrostatic precipitator to reduce
environmental load such as CO2, NOx, SOx, particle matters, etc. emitted from coal-fired thermal power plants.
Thanks to these technological developments, Japan’s thermal power generation technology and products are at a
globally high level, and the thermal power field has gained economical and environmental advantages. The use of
Japanese heavy electric machinery makers could be an attractive option for Vietnam.
8-1
As for the operation and maintenance technology for coal-fired power plants, Japanese power companies adopted
supercritical and ultrasuper critical power generation technologies early on, and have accumulated ample
technology and knowledge. With these advantages, the Japanese power companies work to reduce operation and
maintenance costs and ensure reliability, by placing utmost priority on the maintenance of high thermal efficiency
and reliable power supply. Especially for the operation of coal-fired thermal power plants, Japanese power
companies possess technology to utilize various types of coal especially imported coal, as well as technology to
effectively utilize resources, such as the use coal ash generated from power plants in civil work and building
material., etc. in addition to O&M technology above.
With regard to the power plant construction technique, Japan’s heavy electric machinery manufacturers are
excellent in managing schedules for construction work. Building a power plant can take a long time and the ability
to stick to a schedule in such work is very important in a situation with electric power shortage such as one that
Vietnam is experiencing.
For the reasons above, and the technological advantages of thermal power generation facilities, O&M technology
and experience addressing issues particular to coal-fired thermal power generation facilities, and other
comprehensive technological abilities superior to many other countries, the use of Japan’s coal-fired thermal
power generation technology is likely to be attractive to Vietnam.
2) Economical advantages
To demonstrate the advantages of Japanese companies in international competition, it is important for the
government and private sector to join force and promote the export of an infrastructure package that includes the
supply of infrastructures, excellent technology, financing, O&M, etc. While infrastructure projects tend to have
higher project cost that comes with undertakings by Japanese companies in other countries could be reduced
through collaboration with those companies and public institutions such as JBIC (BC, Overseas investment loans),
JICA (Yen loan), etc.
With regard to collaboration with public institutions, President Obama of the USA announced the Climate Action
Plan in June 2013, and declared to end the use of public funds to assist new construction of coal-fired thermal
power plants overseas. He also requested other countries and multilateral development banks to take similar
actions without delay, spreading the move among public institutions in Europe and the United States to limit the
public financing and support for coal-fired thermal power plants.
On the other hand, Japan’s policy is to offer strategic economic cooperation and infrastructure systems including
coal-fired thermal power plants, on the belief that if the introduction of a coal-fired thermal power plant is
required, Japan will contribute to increasing the plant efficiency and lowering carbon emissions. There are cases in
Vietnam where JBIC financed a new coal-fired thermal power project for which the Export-Import Bank of the
United States had stopped financing.
8-2
When offering financing support to overseas projects, it is important for the government and private sector to
work together and share roles, with the government bearing the political risks in addition to contributing and
financing necessary funds. NEXI’s trade insurances play an important role when promoting the export of
infrastructure systems.
With the invitation and training assistance by JICA, the transfer of technologies necessary for the operation,
maintenance and management of thermal power plants to Vietnamese counterparts will be possible, and the host
country might be able to continuously enjoy the benefit of the development (job creation, technology transfer,
etc.) that would not be possible with public aid through usual yen load assistance. The project development based
on the collaboration between the government and private sector could give economical advantages to such
activities undertaken by Japanese companies.
(3) Necessary Measures to Promote Contracting Japanese Company

The Project implementing entity is planned to be EVNGenco2, and it hopes for financing with either buyer’s
credit or yen load assistance. As stated above, the public institutions in Europe and USA are restricting the use of
public funds to support coal-fired thermal power plants. However, competition with Chinese or Korean makers is
expected to be severe as usual.
Japanese companies are working towards the reduction of carbon emissions through state of the art technologies
such as those for ultrasuper critical thermal power plants. In order for the Project to have a high investment effect,
public assistance from Japan’s export credit agencies such as JICA and NEXI, or yen loan assistance is
imperative.
8-3
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Study on Economic Partnership Projects

in Developing Countries in FY2014

Study on the Ultra Super Critical Coal-Fired Power Plants

Duyen Hai Coal

Bac Lieu Power Plant

0km 50km 100km

Source: Created by Study Team

NO2 Nitrogen Dioxide

Chapter 1 Overview of the Host Country and Sector

Chapter 2 Study Methodology

Chapter 3 Justification, Objectives and Technical Feasibility of the Project

Chapter 4 Evaluation of Environmental and Social Impacts

Chapter 5 Financial and Economic Evaluation

Chapter 6 Planned Project Schedule

Chapter 7 Implementing Organization

Chapter 8 Technical Advantages of Japanese Company

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

Table 1 Estimated range of design coal property

Coal Property Criteria

Source：Presented by study group

Table 2 The design outline of this project

Turbine type Tandem compound 4

Source: Presented by study group

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

Site Layout for 3 phases Power Train Configuration

Source：Presented by study group

2 Steam turbine & generator 455 461 373

Other equipment and civil

4 Port system 257 257 257

Land acquisition & preparation, and

7 Consultant fee & management fee 54 54 53

8 Contingency 216 218 181

9 Total 2,379 2,398 1,987

Source; Prepared by Stud Group

Land acquisition & preparation, and

7 Consultant fee & management fee 46 46 45

8 Contingency 206 208 171

9 Total 2,268 2,287 1,876

Source; Prepared by Stud Group

2 Steam turbine & generator 376 1,804 461

Other equipment & civil

4 Port system 39 4,639 257

7 Consultant fee & management fee 43 239 54

8 Contingency 141 1,630 218

9 Total 1,554 17,930 2,398

Exchange rate; US$1=VND21,246

Table 7 Main assumptions

Item Value Remarks

A higher value than other coal-fired power plants considering

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

Calculated based on the assumed specifications and properties

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

Yen-denominated interest rate for Vietnam’s EVN

Standard condition of Yen-loan for Vietnam

Repayment period Standard condition of Yen-loan for Vietnam

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

Source; Prepared by Stud Group

Table 8 EIRR, B/C and NPV

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

Source; Prepared by Stud Group

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

Case 1 Case 2 Case 3 Case 2’ Case 3’

Net Present Value

Source; Prepared by Stud Group