Vietnam’s state utility secures $75.4mn KfW loan to expand largest hydropower plant in southern region

It is the first time KfW has provided EVN with a direct loan not backed by a government guarantee.

The expansion will add 200 megawatts (MW) of capacity through a new plant built alongside the existing Tri An facility on the Dong Nai River, the last hydropower station on the river before it flows into Ho Chi Minh City.

The current plant, the largest hydropower project in southern Vietnam, has four turbines and a capacity of 400 MW, generating about 1.7 billion kWh annually, according to EVN's website. 

The reservoir, covering approximately 323 square kilometers and storing some 2.7 billion cubic meters, supports industrial and domestic water supply for millions of people across 16 southern provinces, and irrigates more than 20,000 hectares of farmland.

EVN said the expansion project will meet Vietnamese technical regulations and international environmental and social standards set by KfW.

Construction on the expansion is expected to begin later this month. 

The first turbine is scheduled to enter operation in the third quarter of 2027, followed by a second unit later that year.

EVN said the loan strengthens its cooperation with KfW, which has committed more than €800 million ($928.4 million) in recent years for energy projects in Vietnam, including loans without sovereign guarantees.

Since 2009, the bank has signed nine official development assistance (ODA) and grant agreements with EVN worth €891.5 million ($1 billion). Six projects have been completed.