A Loui Hydro Power Plant, Vietnam

The A Luoi hydroelectric plant is on schedule to start generating 170MW at the end of 2010. The 170MW comes from two turbine groups, which will supply the Vietnamese national grid with nearly 700GWh per year. The plant is located on the A Sap river in Thua Thien Hue province, 70km west of Hue city and 160km north-west of Da Nang city. It will also move water to the Bo river, thereby increasing capacity and electrical output of the Huong Dien hydropower factory on the Co Bi river.

A Luoi is estimated to cost $202.1m, and will be owned by Central Hydropower Joint Stock Co (CHP). It includes the longest and most sophisticated tunnel to be constructed in Vietnam. This headrace tunnel is being built by Cavico Corporation at a cost of around $55.4m.

Cavico has been awarded two contracts, and will be paid on completion of the various construction stages. The tunnel is around 11.6km long and 4m to 6m wide, and will also include a surge tank.

CAPITAL SPONSORSHIP FUNDING

CHP and the Vietnam Bank of Agriculture and Rural Development signed the contract for capital sponsorship and credit. The bank will play a mediation role in the contract with three other co-creditors: the Vietnam-Thailand Joint-Venture Bank, the An Binh Jointstock Commercial Bank and the Rubber Financing Company.

The 12-year term and its three-year grace period has helped meet one-third of the project's estimated costs of over VND3.2tn.

ECONOMIC DEPENDENCE ON NATURAL RESOURCES

Vietnam's economy depends on its many natural resources with agriculture, forestry and fisheries amounting for over a quarter of total GDP, and nearly three-quarters of total employment.

However, unsustainable management of resources is a threat to Vietnam's continued economic viability. Environmental degradation is increasingly undermining the economy's capacity to support, let alone increase, demand.

In a move to counter these effects a 3,000ha reforestation project has been proposed for the A Luoi district.

HYDRO AND SOLAR RESOURCES

Environmental changes are already motivating the considerations for renewable energy.

Over 400 small hydro stations with a total installed capacity of 30MW are now in place to maximise on Vietnam's high rainfall and dense system of rivers and streams. On a smaller scale, it is believed that over 100,000 micro and family hydropower generators are now in use.

Solar energy potential is also rich, with a daily average of 4–5kWh per square metre. There are currently five large-scale solar photovoltaic power systems with a considerable number of hybrid solar PV and micro-hydropower generation plants being built. The government is also financing the construction of 100 solar home systems and 200 solar community systems off the north-east coast.

Wind energy potential remains relatively modest, and is mainly concentrated around coastal areas. The Research Center for Thermal Equipment and Renewable Energy (RECTARE), situated in Ho Chi Minh Technical University, develops and promotes wind energy technologies, and has installed over 800 wind generators in over 40 provinces and towns throughout Vietnam.

The largest numbers have been installed near Nha Trang city in Khanh Hoa province on the south-central coasts, with 135 units.

The potential for biogas and biomass is fairly large, and is mainly used to produce fuel in rural areas.

CAVICO

Founded in 2000, Cavico is a major construction and investment conglomerate headquartered in Hanoi, Vietnam. The company constructs mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels and urban community developments.

The company can nurture projects 'from concept through completion' with interrelated investment, permitting, design, construction management and facility maintenance services. Cavico’s project partners include top multi-national corporations and government organisations. The company employs more than 3,000 people.