Vietnam Power Sector Reform Development Policy Operation

Abstract*

The objective of the First Power Sector Reform Development Policy Operation Program is to support the Government of Vietnam's implementation of a market for electricity generation, restructuring of the power sector and reform of tariffs that will facilitate effective competition, transparency and predictability, encourage timely generation investment, improve system operational reserve, and provide incentives for efficient use of electricity. Vietnam... Show More

Development Objective

To support the Government of Vietnam's implementation of a market for electricity generation, restructuring of the power sector and reform of tariffs that will facilitate effective competition, transparency and predictability, encourage timely generation investment, improve system operational reserve and provide incentives for efficient use of electricity.

Key Details

Project Details

Project ID
P115874
Status
Closed
Team Leader
Richard Jeremy Spencer
Borrower 2
Ministry of Industry and Trade

Country
Viet Nam
Disclosure Date
August 18, 2009
Approval Date
(as of board presentation)
April 6, 2010
Effective Date
September 23, 2010

Total Project Cost 1
US$ 311.80 million
Implementing Agency
Electricity Regulatory Authority of Vietnam
Region
East Asia and Pacific
Fiscal Year 3
2010

Commitment Amount
US$ 311.80 million
Environmental Category
N/A
Environmental and Social Risk
Not Applicable
Closing Date
August 31, 2011

Last Stage Reached
BANK APPROVED
Last Update Date
January 15, 2013

Associated Projects
P124174

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Private Sector Development

FY17 - Business Enabling Environment100%
- FY17 - Regulation and Competition Policy100%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
International Bank for Reconstruction and Development	200.00
IDA Credit	111.80

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	200.00
IDA Commitment	111.80
IBRD + IDA Commitment	311.80

Lending Instrument
Grant Amount	N/A
Total Project Cost**	311.80

Summary Status of World Bank Financing (US$ Millions) as of July 31, 2025

No data available.

Detailed Financial Activity as of July 31, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Feb 15, 2023	IBRD-78680	Int Charges	3,799,278.20
Feb 15, 2023	IBRD-78680	Loan Repay	6,900,000.00
Aug 15, 2023	IDA-47110	Int Charges	319,139.44
Aug 15, 2023	IDA-47110	Int Charges	319,139.44
Aug 15, 2023	IDA-47110	Int Charges	1,497,827.90
Aug 15, 2023	IDA-47110	Int Charges	21,126.19
Aug 15, 2023	IDA-47110	Loan Repay	2,431,538.80
Aug 15, 2022	IDA-47110	Int Charges	334,347.47
Aug 15, 2022	IDA-47110	Int Charges	334,347.47
Aug 15, 2022	IDA-47110	Int Charges	1,569,204.20
Aug 15, 2022	IDA-47110	Int Charges	13,397.85
Feb 15, 2022	IBRD-78680	Int Charges	656,665.30
Feb 15, 2022	IBRD-78680	Loan Repay	6,900,000.00
Feb 15, 2022	IDA-47110	Int Charges	364,305.94
Feb 15, 2022	IDA-47110	Int Charges	364,305.94
Feb 15, 2022	IDA-47110	Loan Repay	2,493,497.20
Feb 15, 2022	IDA-47110	Loan Repay	63,035.74
Feb 15, 2022	IDA-47110	Int Charges	1,695,595.10
Aug 15, 2022	IDA-47110	Loan Repay	2,409,711.80
Aug 15, 2022	IBRD-78680	Int Charges	1,057,479.60
Aug 15, 2022	IBRD-78680	Loan Repay	6,900,000.00
Aug 15, 2021	IBRD-78680	Loan Repay	6,900,000.00
Aug 15, 2021	IDA-47110	Int Charges	6,839.88
Aug 15, 2021	IDA-47110	Loan Repay	2,592,138.80
Aug 15, 2021	IDA-47110	Int Charges	1,779,244.00
Aug 15, 2021	IDA-47110	Int Charges	379,100.25
Aug 15, 2021	IDA-47110	Int Charges	379,100.25
Aug 15, 2021	IBRD-78680	Int Charges	708,730.60
Feb 15, 2021	IDA-47110	Int Charges	389,475.28
Feb 15, 2021	IDA-47110	Int Charges	1,820,999.00
Feb 15, 2021	IBRD-78680	Int Charges	858,666.70
Feb 15, 2021	IBRD-78680	Loan Repay	6,900,000.00
Feb 15, 2021	IDA-47110	Int Charges	76,598.81
Feb 15, 2021	IDA-47110	Loan Repay	1,314,684.40
Feb 15, 2021	IDA-47110	Int Charges	389,475.28
Aug 15, 2020	IDA-47110	Loan Repay	25,840.76
Aug 15, 2020	IDA-47110	Loan Repay	1,260,492.20
Aug 15, 2019	IDA-47110	Int Charges	376,239.25
Aug 15, 2019	IBRD-78680	Int Charges	3,258,000.00
Aug 15, 2019	IDA-47110	Int Charges	1,765,816.20
Feb 15, 2019	IBRD-78680	Int Charges	3,056,444.50
Feb 15, 2019	IDA-47110	Int Charges	44,465.37
Feb 15, 2019	IDA-47110	Int Charges	44,465.37
Feb 15, 2019	IDA-47110	Int Charges	335,108.16
Feb 15, 2019	IDA-47110	Int Charges	335,108.16
Feb 15, 2019	IDA-47110	Int Charges	1,769,651.20
Aug 15, 2018	IBRD-78680	Int Charges	2,534,000.00
Aug 15, 2018	IDA-47110	Int Charges	67,009.20
Aug 15, 2018	IDA-47110	Int Charges	378,700.28
Aug 15, 2018	IDA-47110	Int Charges	378,700.28
Aug 15, 2018	IDA-47110	Int Charges	1,777,366.60
Feb 15, 2018	IDA-47110	Int Charges	40,945.51
Feb 15, 2018	IDA-47110	Int Charges	399,289.00
Feb 15, 2018	IDA-47110	Int Charges	399,289.00
Feb 15, 2018	IDA-47110	Int Charges	1,803,344.10
Feb 15, 2018	IBRD-78680	Int Charges	1,952,444.50
Aug 15, 2017	IBRD-78680	Int Charges	1,789,888.90
Aug 15, 2017	IDA-47110	Int Charges	1,768,668.80
Aug 15, 2017	IDA-47110	Int Charges	16,460.03
Aug 15, 2017	IDA-47110	Int Charges	385,264.80
Aug 15, 2017	IDA-47110	Int Charges	385,264.80
Feb 15, 2017	IDA-47110	Int Charges	16,724.40
Feb 15, 2017	IDA-47110	Int Charges	16,724.40
Feb 15, 2017	IBRD-78680	Int Charges	1,645,777.80
Aug 15, 2016	IDA-47110	Int Charges	18,550.77
Aug 15, 2016	IDA-47110	Int Charges	382,037.28
Aug 15, 2016	IDA-47110	Int Charges	382,037.28
Aug 15, 2016	IDA-47110	Int Charges	1,793,028.20
Feb 15, 2017	IDA-47110	Int Charges	352,813.47
Feb 15, 2017	IDA-47110	Int Charges	352,813.47
Feb 15, 2017	IDA-47110	Int Charges	1,718,576.20
Feb 15, 2016	IBRD-78680	Int Charges	889,333.30
Feb 15, 2016	IDA-47110	Int Charges	1,184.49
Feb 15, 2016	IDA-47110	Int Charges	1,184.49
Feb 15, 2016	IDA-47110	Int Charges	383,658.75
Feb 15, 2016	IDA-47110	Int Charges	383,658.75
Aug 15, 2015	IBRD-78680	Int Charges	713,944.44
Feb 15, 2015	IDA-47110	Int Charges	16,383.96
Feb 15, 2015	IDA-47110	Int Charges	16,383.96
Feb 15, 2015	IDA-47110	Int Charges	371,109.16
Feb 15, 2015	IDA-47110	Int Charges	371,109.16
Feb 15, 2015	IDA-47110	Int Charges	1,818,634.40
Aug 15, 2013	IDA-47110	Int Charges	16,364.76
Aug 15, 2013	IDA-47110	Int Charges	399,228.80
Aug 15, 2013	IDA-47110	Int Charges	399,228.80
Aug 15, 2013	IDA-47110	Int Charges	1,950,519.10
Aug 15, 2013	IBRD-78680	Int Charges	724,000.00
Aug 15, 2013	IDA-47110	Int Charges	16,364.76
Feb 15, 2014	IDA-47110	Int Charges	412,928.00
Feb 15, 2014	IDA-47110	Int Charges	1,974,147.10
Feb 15, 2014	IDA-47110	Int Charges	9,772.12
Feb 15, 2014	IDA-47110	Int Charges	9,772.12
Feb 15, 2014	IDA-47110	Int Charges	412,928.00
Feb 15, 2014	IBRD-78680	Int Charges	684,888.90
Aug 15, 2020	IDA-47110	Int Charges	385,899.90
Aug 15, 2020	IDA-47110	Int Charges	385,899.90
Aug 15, 2020	IBRD-78680	Int Charges	2,214,333.20
Aug 15, 2020	IDA-47110	Int Charges	1,736,209.90
Feb 15, 2020	IDA-47110	Int Charges	14,009.62
Feb 15, 2020	IDA-47110	Int Charges	14,009.62
Feb 15, 2020	IDA-47110	Int Charges	1,756,976.90
Feb 15, 2020	IBRD-78680	Int Charges	2,576,000.00
Feb 15, 2020	IDA-47110	Int Charges	360,346.25
Feb 15, 2020	IDA-47110	Int Charges	360,346.25
Aug 15, 2019	IDA-47110	Int Charges	11,710.02
Aug 15, 2019	IDA-47110	Int Charges	376,239.25
Feb 15, 2016	IDA-47110	Int Charges	1,787,510.50
Aug 15, 2016	IBRD-78680	Int Charges	1,243,666.60
Aug 15, 2015	IDA-47110	Int Charges	312,724.62
Aug 15, 2015	IDA-47110	Int Charges	312,724.62
Aug 15, 2015	IDA-47110	Int Charges	1,803,396.60
Aug 15, 2014	IBRD-78680	Int Charges	603,333.30
Aug 15, 2014	IDA-47110	Int Charges	9,630.51
Aug 15, 2014	IDA-47110	Int Charges	418,577.44
Aug 15, 2014	IDA-47110	Int Charges	418,577.44
Aug 15, 2014	IDA-47110	Int Charges	1,964,523.40
Feb 15, 2015	IBRD-78680	Int Charges	644,000.00
Aug 15, 2015	IDA-47110	Int Charges	71,521.84
Aug 15, 2015	IDA-47110	Int Charges	71,521.84
Apr 6, 2010	IBRD-78680	Loan Commitment	200,000,000.00
Apr 6, 2010	IDA-47110	Loan Commitment	111,800,000.00
Feb 15, 2024	IDA-47110	Loan Repay	2,406,840.00
Feb 15, 2024	IDA-47110	Int Charges	307,803.70
Feb 15, 2024	IDA-47110	Int Charges	307,803.70
Feb 15, 2024	IDA-47110	Int Charges	1,444,625.20
Feb 15, 2024	IBRD-78680	Int Charges	5,028,136.00
Feb 15, 2024	IBRD-78680	Loan Repay	6,900,000.00
Feb 15, 2024	IDA-47110	Loan Repay	7,306.46
Aug 15, 2024	IDA-47110	Int Charges	302,307.62
Aug 15, 2024	IBRD-78680	Int Charges	4,825,911.00
Aug 15, 2024	IBRD-78680	Int Charges	29,147.29
Aug 15, 2024	IDA-47110	Loan Repay	56,601.33
Aug 15, 2024	IBRD-78680	Loan Repay	6,900,000.00
Aug 15, 2024	IDA-47110	Loan Repay	2,386,289.00
Aug 15, 2024	IDA-47110	Int Charges	302,307.62
Aug 15, 2024	IDA-47110	Int Charges	1,353,659.40
Feb 15, 2024	IBRD-78680	Int Charges	48,125.85
Aug 15, 2023	IBRD-78680	Int Charges	4,516,747.00
Aug 15, 2023	IBRD-78680	Loan Repay	6,900,000.00
Aug 15, 2023	IBRD-78680	Int Charges	180,773.95
Feb 15, 2023	IDA-47110	Loan Repay	37,453.88
Feb 15, 2023	IDA-47110	Loan Repay	2,403,264.50
Feb 15, 2023	IDA-47110	Int Charges	329,497.00
Feb 15, 2023	IDA-47110	Int Charges	329,497.00
Feb 15, 2023	IDA-47110	Int Charges	1,525,233.20
Feb 15, 2023	IBRD-78680	Int Charges	289,547.00

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Monitoring and Evaluation	Satisfactory	2010-04-27
Program Management	Satisfactory	2010-04-27
Progress towards achievement of PDO	Satisfactory	2010-04-27

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 07-25-2016
Outcomes	Moderately Satisfactory
Risk to Development Outcome	High
Bank Performance	Moderately Satisfactory
Borrower Performance	Moderately Satisfactory
Government Performance	Moderately Satisfactory
Implementing Agency	Substantial

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 10-24-2016	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Moderately Satisfactory	N/a
Risk To Development Outcome	High	N/a
Bank Performance	Moderately Satisfactory	N/a
Borrower Performance	Moderately Satisfactory	N/a
Government Performance	Moderately Satisfactory	N/a
Implementing Agency	Satisfactory	N/a
Icr Quality	Substantial	N/a
M&e Quality	Substantial	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Increase in generation availability due to market efficiency incentives improves reserve adequacy and supply security. Indicator: hourly operational reserve.	Value	No hourly operational reserve.	Not assessed.	End of third operation in programmatic series:Ten
	Date	December 31, 2008	April 17, 2010	December 31, 2012
	Comment

Enhanced transparency in generation contracting and pricing, creating predictability for investors.Indicators: Single Buyer contracts coverage of generation and disclosure of spot market prices.	Value	No contract coverage.No spot market disclosure.	Not assessed.	End of third operation in programmatic series:Con
	Date	December 31, 2008	April 17, 2010	December 31, 2012
	Comment

The independence and diversity of electricity generators increases, creating conditions that enable development of effective competition and allow the transition to wholesale competition.Indicator:	Value	Highest proportion of generation owned by a single	Not assessed.	End of third operation in programmatic series:Hig
	Date	December 31, 2008	April 17, 2010	December 31, 2012
	Comment

The System and Market Operator provides efficient and non discriminatory services following VCGM rules, codes and regulations.Indicator: audit by independent consultant firm determines compliance of	Value	No audit (because there is no SMO).	Not assessed.	End of third operation in programmatic series:Aud
	Date	December 31, 2008	April 17, 2010	December 31, 2012
	Comment

Annual tariff updates approved by MOIT up to 5 percent.Indicator: annual tariff adjustment is approved by March each year.	Value	No annual update.	Annual update approved in March 2010.	End of third operation in programmatic series:Ann
	Date	December 31, 2008	April 17, 2010	December 31, 2012
	Comment

Phase out of cross subsidy between different tariff categories.Indicators: level of cross subsidy from industrial and commercial categories reduced at least 50 percent; and subsidies targeted to poo	Value	Cross subsidy of $370 million from industrial and	Subsidized block reduced to 50 kWh per month, but	End of third operation in programmatic series:Cro
	Date	December 31, 2007	April 17, 2010	December 31, 2012
	Comment

Enhanced energy efficiency through legal framework, and adequate monitoring and enforcement mechanisms.Inidcator: energy efficiency target established by law, and MoIT and ERAV have capacity to enfo	Value	No Energy Efficiency Law, and no formal demand sid	Not assessed.	End of third operation in programmatic series:Ene
	Date	December 31, 2008	April 17, 2010	December 31, 2012
	Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Milestones for Policy Area A, Development of Competitive Market:ERAV completes draft Vietnam Competitive Generation Market (VCGM)Rules and submits to MoIT consultation and approval.MoIT issues Ci	Value	No VCGM Rules draft submitted or Grid Code circula	Draft market rules have been sent for consultation	VCGM Rules draft submitted and Grid Code circular
	Date	April 6, 2010	April 17, 2010	June 30, 2011
	Comment

Milestones for Policy Area B, Power Sector Restructuring:EVN submits recommendations on independent generation companies to PrimeMinister.MoIT issues Circular on methodology and procedures to cal	Value	No recommendation on independent generation compan	Vietnam Electricity has submitted its recommendati	Recommendation on independent generation companies
	Date	April 6, 2010	April 17, 2010	June 30, 2011
	Comment

Milestones for Policy Area C, Electricity Tariff Reform:Prime Minister Decision to promulgates Regulations on methodology to calculate and procedures for appraisal of market-based electricity prices	Value	No regulations on methodology for market based pri	A tariff regulation on methodology for calculation	Regulation on methodology for market based pricing
	Date	April 6, 2010	April 17, 2010	June 30, 2011
	Comment

Milestones for Policy Area D, Improving Demand Side Energy Efficiency:MoIT submits draft Energy Efficiency Law to Prime Minister.ERAV completes load research and drafts procedures for PCs' periodi	Value	Draft Energy Efficiency Law not submitted.Load re	Not assessed	Draft Energy Efficiency Law submitted by MoIT to P
	Date	April 6, 2010	April 17, 2010	June 30, 2011
	Comment