Ialy Hydropower Plant Extension Project, Vietnam

Ialy Hydropower Plant Extension Project (IHPEP) involves building an extension of the existing 720MW Ialy Hydropower Plant in Vietnam.

The 360MW extension will involve installation of two additional turbines, each with a capacity of 180MW. This will increase the total installed capacity of the Ialy Hydropower Plant to 1,080MW.

The expansion project was approved by the Prime Minister of Vietnam in January 2018 and Vietnam Electricity (EVN) in September 2019. It is being developed by Power Project Management Board 2 (PMB2) on behalf of EVN.

IHPEP entails an estimated investment of VND6.4trillion ($280m).

Construction of the expansion project started in June 2021. The first generating unit is expected to commence operations in the second quarter of 2024 and the second generating unit in the third quarter of 2024.

Location Details

The Ialy hydropower plant extension project is located in Ya Tang commune, Sa Thay district, Kon Tum province, and Ia Mo Nong and Ia Kreng communes in Ialy town, Chu Pah district, Gia Lai province.

The extension will be situated around 400km from the existing plant.

Ialy Hydropower Plant Extension Details

The Ialy Hydropower Plant Extension project will use around 2.46 hectares (ha) of natural forest including 1.02ha located in Gia Lai Province and 1.44ha in Kon Tum Province.

The project will involve addition of two 180MW turbine units, which will increase the average electricity generation output per year by about 233.2 million kilowatt hours (kWh).

The additional electricity generated will enable powering more than 70,000 local households with clean and sustainable energy and offset 68kt of greenhouse gases emission annually. Additionally, it will also help in improving peak load supply and the electricity system stability.

Overall, IHPEP will include 63 bidding packages, of which 39 were awarded as of February 2023.

The development plan includes the design and construction of the new waterway and powerhouse on the left side of the existing Ialy Hydropower plant. The primary components will include, inlet leading to the intake, intake, headrace tunnel, surge tank, penstock, powerhouse, Tailrace at the powerhouse and connection to the national grid.

In 2023, the works will include concrete placement for water-intake; installation of gantry crane; completing excavation work and reinforced concrete placement for headrace tunnel; finishing reinforced concrete work for the lower chamber and vertical shaft of surge tank.

The project will also aim to complete concrete work and installation of repair gate, operation gate, bridge crane at the machine hall, transit bridge crane and penstock erection in 2023.

Ialy Hydropower Plant extension financing

The project will involve an investment of VND6.4trillion ($280m).

Around 70% of the funding is arranged from credit loans from AGRIBANK and the Agency for French Development (AFD), while the remaining 30% comprises counterpart capital from EVN.

In February 2023, EVN and Vietnam Bank for Agriculture and Rural Development (AGRIBANK) signed a credit contract worth VND2.4trillion for the IHPEP with a maximal loan term of 168 months.

AFD signed a credit facility agreement in 2021 to provide a €74.7m non-sovereign concessional loan for the hydropower plant extension project.

Contractors Involved 

In September 2022, ANDRITZ secured the order from EVN to supply the complete electromechanical equipment and technical services for the Ialy hydropower plant extension project.

The contract scope includes the supply of two 180 MW Francis turbine units, two 211 MVA synchronous generators, control and protection systems, additional auxiliary equipment, and associated technical services.

Power Engineering Consulting provided technical design and cost estimates for the construction of the project.

In April 2021, Vietnam Electricity and the contractor consortium comprising Lung Lo Construction Corporation, Truong Son Construction Corporation (Ministry of National Defense), Song Da Corporation, General Vietnam Construction, and Import-Export Joint Stock Company, LILAMA 10 Joint Stock Company signed the Package 37 (XL-05) contract.

Key construction items of the package included construction and installation of equipment for the intake gate and access canal, water tunnel, pressure tower, pressure pipe, factory, drain canal, stable treatment of the rolling roof, and anti-rolling stone.

It also included water intake dams, T2 and T2 diversion wall, auxiliary vaults and niches, operating roads, and a material gathering yard among other works.

In February 2023, PC1 Group Joint Stock Company won the bid and signed a contract for the construction of package 39 (XL-07). Key components of the package include equipment supply, construction, and installation, calibration experiment of 500kV transmission lines, and distribution station expansion of the project.