Asian bank approves funds for Vietnam’s 156-MW Song Bung 4

The Asian Development Bank (ADB) has approved a US$196.5 million loan for construction of the 156-MW Song Bung 4 hydroelectric project on the Song Bung River in Vietnam’s Quang Nam Province.

The US$267.3 million project is to include a dam on the Bung River, a tributary of the Vu Gia River; a headrace tunnel; underground penstock; a power station about five kilometers downstream from the dam; and a 35-kilometer transmission line.

The first Vietnam hydro project to receive funding from a multi-lateral lender, Song Bung 4 is expected to be completed in 2013. The balance of funding is being provided by owner Electricity of Vietnam (EVN) and Vietnam Development Bank.

Earlier this year, EVN and its project manager, Hydropower Project Management Board No. 3, recruited consultants to serve as implementation supervisor for project construction. (HNN 12/6/07) ADB previously said the project’s goods and services would be procured under ADB guidelines.

The bank previously said major civil works would be divided into four packages: dam and spillway, waterway and power station, transmission line, and highway realignment. Equipment would be divided into two packages, electro-mechanical and hydro-mechanical.

About 121 person-months of international consultants and 1,189 person-months of national consultants would be required for tender preparation and evaluation, contract negotiation, construction supervision, and social and environmental monitoring.

The Japan Fund for Poverty Reduction is providing a US$2 million grant to enhance the livelihoods of 206 families that are to be relocated. A resettlement planning document was prepared for the project by Sweco International AB of Sweden under an earlier ADB contract.

ADB said extensive efforts also have been taken to minimize environmental effects of the project.

The ADB project officer is Pradeep Perera, Infrastructure Division, SERD, Asian Development Bank, P.O. Box 789, 0980 Manila, Philippines; (63) 2-6326571; E-mail:; Internet:

For information, contact Project Manager Tran Van Hai, Hydropower Project Management Board No. 3, Westside Tuyen Son Bridge, Hai Chau District, Da Nang City, Vietnam; Fax: (84) 511 642266; E-mail:

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