Suoi Lum 1 Hydropower Plant

Active

Prospective

Nam Lum Hydroelectric JSC, a private entity from Vietnam, was planning the development of the 20MW Suoi Lum 1 Hydropower Plant, Bac Yen district, Son La province. Annual production was estimated at 74,540 MWh, to be be supplied to the national grid via a 110kV transmission line to the Muong La subtransformer (9km). Commissioning was expected for March 2012. Lifespan was 30 years. Construction lasted 3 years. Electricity tariff was VNW 830.3 per kWh ($0.0399 per kWh). The PPA with EVN was signed in December 2009. The EIA was approved in February 2008. The Feasibility study was approved in November 2009. The EPC contract for the waterway was signed in April 2010. The equipment supply contract was signed in July 2010. Financial closure was reached in December 2009. Total investment cost was VND 472.307 billion ($22.7 million). WACC was 13.17%. Debt to equity ratio was 73/27. The banks involved were Agribank (20% of project cost for 5.8%) and Vietnam Development Bank (53% of project cost, for 9.7%). The project also received a four year tax break (0%), and 5% for the following 9 years. After that business income tax was to be 28%. The project also applied for UNFCCC/CDM financing. http://cdm.unfccc.int/filestorage/K/J/G/KJG1HI6NBU73REXV9DYQ25LWPTMFA8/PDD_Suoi%20Lum%201.pdf?t=ekh8bTI3dXd4fDBko6n5ziSrcieonerc9Imf

Energy

Vietnam

High

World Bank Group

Project

Hydro, Water Supply and Storage, Power Generation (CCGT), Commercial, Government