Grid connection of Lai Chau hydropower plant

completed

The project involves financing the grid connection of the Lai Chau hydroelectric power plant on the Black River (Song Da) in northern Vietnam. For this purpose, a 160 km long 500 kV high-voltage transmission line will be built from Lai Chau to Son La and the switchgear in Son La will be expanded accordingly. The Lai Chau HPP (1,200 MW) currently under construction will be connected to the Vietnamese interconnected grid in order to supply load centers primarily in the north and center of the country. The construction of the Lai Chau hydroelectric power plant is not subject to FC financing, but is considered an associated project, particularly with regard to environmental and social aspects. The project is being carried out by the state-owned Vietnamese electricity supplier EVN and EVN's transmission network subsidiary National Power Transmission Company (NPT). Based on the signed supply and service contracts, we estimate the total cost of the line construction including the expansion of the switchgear at the equivalent of around EUR 115 million. These will be financed through a development loan, a promotional loan and the partner's own contribution. In addition, we are allocating funds for an ongoing accompanying measure to ensure the environmental and social compatibility of the construction and operation of the Lai Chau HPP.