wb-phu my 2 phase 2 power project

Document of The World Bank Report No: 24692 PROJECT APPRAISAL DOCUMENT ON A PROPOSED INTERNATIONAL DEVELOPMENT ASSOCIATION PARTIAL RISK GUARANTEE IN THE AMOUNT OF UP TO US$75 MILLION FOR A SYNDICATED COMMERCIAL BANK LOAN TO MEKONG ENERGY COMPANY LTD FOR THE PHU MY 2 PHASE 2 POWER PROJECT IN THE SOCIALIST REPUBLIC OF VIETNAM August 29, 2002 Energy Sector Development Unit East Asia and Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective January 1, 2002) Currency Unit = Dong (D) DI = US$0.000067 US$1 = D15,000 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank LLA Land Lease Agreement BOT Build-Operate-Transfer LTSA Long Term Service Agreement BP British Petroleum MECO Mekong Energy Company Ltd BR-VT Ba Ria - Vung Tau MOI Ministry of Industry CAS Country Assistance Strategy MPI Ministry of Planning and Investment COD Commercial Operation Date MW Megawatt DOSTE Department of Science Technology and O&M Operation and Maintenance Environment of Vung Tau City PMPGC Phu My Power Generation Center DSCR Debt Service Coverage Ratio PPA Power Purchase Agreement EDF Electricite de France PRG Partial Risk Guarantee EDFI EDF International PV Petro Vietnam / Vietnam Oil and Gas EIA Environmental and Social Impact Corporation Assessment SBV State Bank of Vietnam EPC Engineering, Procurement, and SEIER System Efficiency Improvement, Construction Equitization and Renewable Project ERR Economic Rate of Retum SFR Self-Financing Ratio EVN Electricity of Vietnam RFP Request for Proposals GSA Agreement for the Sales of Natural Gas TEPCO Tokyo Electric Power Co. GWh Gigawatt-hour TEPCI TEPCO International IL Investment License TSA Technical Services Agreement IPP Independent Power Producer UDEC Urban Development Construction kWh Kilowatt-hour Cornpany of Ba Ria - Vung Tau Province LIBOR London Inter-Bank Offered Rate WSA Water Supply Agreement Vice President: Jemal-ud-din Kassum Country Manager/Director: Andrew Steer Sector Manager/Director: Mohammad Farhandi Task Team Leader/Task Manager: Anil Malhotra/Suman Babbar VIETNAM VIETNAM PHU MY 2 PHASE 2 POWER PROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 2 2. Key performance indicators 2 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 2 2. Main sector issues and Government strategy 3 3. Sector issues to be addressed by the project and strategic choices 9 C. Project Description Summary 1. Project components 11 2. Key policy and institutional reforms supported by the project 18 3. Benefits and target population 19 4. Institutional and implementation arrangements 19 D. Project Rationale 1. Project alternatives considered and reasons for rejection 22 2. Major related projects financed by the Bank and other development agencies 23 3. Lessons learned and reflected in the project design 24 4. Indications of borrower commitment and ownership 24 5. Value added of Bank support in this project 25 E. Summary Project Analysis 1. Economic 26 2. Financial 26 3. Technical 28 4. Institutional 28 5. Environmental 29 6. Social 31 7. Safeguard Policies 32 F. Sustainability and Risks 1. Sustainability 32 2. Critical risks 33 G. Main Effectiveness Conditions 1. Guarantee Effectiveness Conditions 34 H. Readiness for Implementation I. Compliance with Bank Policies 35 Annexes Annex 1: Project Design Summary 36 Annex 2: Detailed Project Description 37 Annex 3: Estimated Project Costs 42 Annex 4: Cost Benefit Analysis Summary 44 Annex 5: MECO Financial Projections and Assumptions 49 Annex 6: Financial Assessment of the Off-Taker, EVN 57 Annex 7: Project Processing Schedule 69 Annex 8: Procurement Arrangement 70 Annex 9: Statement of Loans and Credits 71 Annex 10: Country at a Glance 73 Annex 11: Indicative Terms and Conditions of the IDA Guarantee 75 Annex 12: Power Sector Reform in Vietnam 81 Annex 13: Gas Reserves, Production and Transportation 87 Annex 14: Environmental and Social Action Plan Summary and ISDS 94 Annex 15: Documents in the Project File 124 Vietnam Phu My 2 iPhase 2 Power IPlroject Project Appiraisal foclmemlt East Asia and Pacific Region EASEG Date: August. 29, 2002 Team Leaders: Anil Malhotra / Date: August 29, 2002 Suman Babbar Country Director: Andrew D. Steer Sector Manager: M. Farhandi Project ID: P067973 Sector: Energy and Private Sector Development Lending Instrument: IDA Partial Risk Guarantee Poverty Targeted [ntervention: No Guarantee Amount (US$ m*Hon): US$75 million Pa S F1isapcng diource, Total (IJ!$Smildi IDA Guaranteed Loan Facility 75.00 ADB OCR Loan Facility 50.00 ADB IPRI covered Loan Facility* 25.00 JBIC Loan Facility 150.00 Proparco Loan Facility 40.00 Equity 140.00 Tota Finanmcing: 480.00** * It is envisaged that ADB will be the Guarantor of Record for the proposed commercial Loan Facility. * Total financing requirements of US$480 million include stand-by financing of US$80 million. Proposed coverage: The IDA Partial Risk Guarantee (PRG) would provide coverage for debt service default caused by a breach of contractual obligations of the Government of Vietnam under the BOT Contract or Government Guarantee entered into between the Government and Mekong Energy Company Ltd (MECO). Project sponsors: EDF International (56.25%); Sumitomo Corporation (28.125%) and TEPCC International (15.625%). Nature of underlying financing: A syndicated commercial bank loan guaranteed by IDA. Guarantee loan amount: Up to US$75 million. Final maturity: 16 years from financial close. Grace period: 32 months (8 months after commissioning). Amortizatiom: Quarterly installments structured to meet the project revenue profile. Expected effectiveness date: September 2002 A. Project Development Objective 1. Project development objective: (see Annex 1) The principal objectives of the proposed Project are to: (a) enable Vietnam meet its increasing power demand in a cost-effective and reliable manner, which will contribute to sustainable economic growth and poverty alleviation; (b) mobilize private sector financing for the infrastructure sector; and (c) promote Govemment's reform efforts. The latter by (i) paving the way for further private participation in the sector through a competitive and transparent framework similar to that developed for the proposed Project; and (ii) promoting commercial discipline through contractually defined arrangements. The proposed Project consists of a 715-MW gas-fired combined-cycle power station in the Phu My Power Generation Center (PMPGC) to be developed, owned, and operated on a Build-Operate-Transfer (BOT) basis by Mekong Energy Company Ltd. (MECO), a limited liability company incorporated in Vietnam by the private sponsor consortium of EDF Intemational (EDF1), Sumitomo Corporation and TEPCO Intemational (TEPCI). Under the Power Development Project (CR 2820-VN), the Bank has partially financed the first phase of the Phu My 2 power project as a public project, and provided technical assistance support for the development of the second phase as a BOT project. IDA Partial Risk Guarantee (PRG) of up to US$75 million in support of commercial debt financing was offered as an option to the bidders during the competitive bidding to select a private developer consortium for implementing the proposed Project under a BOT structure. After evaluation of the bids received, the EDFI-led consortium was awarded the mandate for the development of the proposed Project in January 1999. The price of electricity from the proposed Project will be approximately US cents 4. l/kWh on a levelized basis, which is competitive with those offered by Independent Power Producer (IPP) plants in Asia. The winning proposal included the IDA PRG as a critical core component of the financing for the Project. The proposed Project is part of the national least cost power generation investment plan. It would be based on combined cycle technology using domestic natural gas and thereby have minimal environmental and foreign exchange impact. It would help reduce power shortages and secure significant economic benefits for the country. By enabling the Government to shift investment costs to the private sector, this Project would help free scarce public resources for other critical uses including poverty alleviation and social development. It is path breaking in terms of attracting substantial private capital investment flows for infrastructure development and being the first internationally competitively bid BOT project in Vietnam. This would be the first IDA Guarantee in Vietnam. 2. Key performance indicators: (see Annex 1) The following performance indicators will measure the impact of the proposed Project on the sector and the economy: (i) completion of the Project according to schedule; (ii) efficient operation of the plant according to the agreed operating regime (availability, thermal efficiency); and (iii) overall increase in power supply and reduction in power shortages. B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: Report 24621 -VN (August 5, 2002) 2 Date of latest CAS discussion: September 3, 2002 (Document No. IDA/R2002-0150[IFC/R2002-0174]) The proposed Project is in full compliance with the Bank's Country Assistance Strategy (Report 24621) which sees the Bank Group's role in support for infrastructure being guided by three emphases, one of which is a high priority being given to mobilizing private sector involvement. The energy sector has contributed substantially to economic growth. Its continued development is essential to sustaining industrial growth and employment generation. The report "Fuelling Vietnam's Development: New Challenges for the Energy Sector" ( April, 1999) identifies the key issues and lays out a strategy for the sector. First, IDA lending will shift towards extending access in rural areas. Second, IDA will support programs to increase the efficiency in the entire energy chain and assist in creating creditworthy institutions, improvement in corporate governance as well as rationalization of sector management. Third, IDA's focus will shift towards mobilization of external financial resources for the sector to enable the country to meet its energy demands, providing assistance that will facilitate private participation in the energy sector. This will include advisory services for putting in place a trnsparent and independent regulatory framework and for promoting private participation in distribution and development of renewable energy resources. The policies and programs that the Government proposes to follow in the sector are in consonance with the Bank's policy guidelines for the power sector. IDA's involvement in Vietnam's power sector is intended to assist the sector's staged transition to a commercial structure and operating environment as well as the development of an efficient and viable energy system. This involvement, commenced under the first four power credits, under which IDA is helping the Government in: (a) strengthening the existing institutions including those responsible for rural electrification; (b) implementing commercial management practices and structures; (c) developing a credible legal and regulatory system; and (d) facilitating the entry of private capital and operators in the sector. In addition, IDA's involvement is influencing the optimal utilization of scarce resources, as well as fostering energy efficiency and good environmental management practices. Sustained involvement in the Vietnamese power sector, through the proposed Project, would help consolidate reform efforts and institutional restructuring initiated under earlier projects. The proposed Project is consistent with the CAS focus on the promotion of private involvement in generation activities, catalyzing private finance for meeting the growing energy demands of the economy and promoting sector reform. In turn, the CAS is organized around the three broad objectives of the Govermuent's Comprehensive Poverty Reduction and Growth Strategy (CPRGS as the PRSP in Vietnam is called): (a) high growth through a transition to a market economy; (b) an equitable, socially inclusive, and sustainable pattern of growth; and (c) adoption of a modern public administration, legal and governance system. The proposed Project supports all three of these objectives. 2. Main sector issues and Government strategy: Backzround: The energy sector can provide the essential underpinning to future economic growth in Vietnam. Today; it contributes over a quarter of the total foreign exchange earnings from oil and coal exports. Energy demand has been growing 13-15%, faster than GDP during the last five years. Continued expansion in energy and electricity supply and delivery infrastructure will enable rapid growth in the agricultural and industrial sectors and sustain economic growth. It can help alleviate poverty by providing energy access to the poor and mitigate environmental degradation by encouraging the shift from traditional to commercial energy, as well as making appropriate fuel choices in expanding supplies. New challenges have emerged in the energy sector requiring structural and institutional reforms that are both more difficult and more complex. 3 Graph. Energy Sector in Vietnam Production In 2000 (GWh) Consumption in 2000 (GWh) 8% 41% t6% - 16% 49% - 4% - 55% 2% 12% * Hydrop e U Coal-fred thermal C Oil-fired themnal | fIndustrial sector o Gas btirbine (Gas) * Gas turbine (DO) 1 Diesel "Agricultural sector * I PP O ResidenUal sector _Olthers (Non4Industial, Commerdal, etc.) Electricity Consumption & Generation In 1990-2000 30,000, 30 25,000 25 20,000 20 S 15000. ' ,- 15 ! - 10,000 10 5,000 * * 0, - ,- ' . 5 eL' S - ,_ ' 1990 1991 1992 1993 1994 1995 199 1997 1998 1999 2000 |_- - Generaton (GWh) i. Consumpbon (GWVh) X Power losses (%)| The major sector issues and the Government's strategy to deal with them are described in more detail below: a. Need for large sector investments and improvement in overall system efficiencv: Over the past five years, electricity demand in Vietnam has increased at 13-15 % per annum. This increase is typical of countries which begin from very low levels of demand. In 2000, the electricity sector in Vietnam had an installed capacity of 6195 MW but the available capacity was only 5814 MW. It had a system reserve margin of about 8 % in the dry season leading to considerable load shedding and brownouts. While electricity losses have been lowered from the early nineties when a quarter of all power generated was lost, the power loss rate still stands at 15.5 %. The average per capita consumption in Vietnam was only 309 kWh - one of the lowest in the region and about one seventh of neighboring Thailand. Load demand forecasts were prepared under three alternative scenarios which indicate that additional generation capacity of 6000-8500 MW would need to be installed over the next decade. Demand - supply gap is expected to widen further in the absence of capacity additions. The proposed Project is a part of the least cost investment plan in all the three scenarios. The Government has recently decided that, in addition to public power generation projects, it would invite private investors to bid for generation projects up to 20 % of total system capacity. In addition, discussions are ongoing for the creation of a Greater Mekong Grid for power trade among the countries in the region, but it is unlikely that in the short or medium term, any major import of power can be expected into Vietnam to meet its power shortages. To sustain an economic growth projection of about 6-8% p.a. over the next 5 years, Vietnam needs to increase its electricity supplies at the rate of about 10-14 % per annum, requiring an investment of about US$ 7.5 billion equivalent over 2000-2005. This investment represents about 5% of the projected GDP. Financing this increase in electricity supplies requires a strategy to: (a) improve the efficiency of existing systems; and (b) maximize the inflow of external sources of capital within prudent limits, as well as, 4 increase the amount of self generated sectoral surpluses for investment. Fundamental reforms of the energy tariffs will be required to ease financing constraints and ensure long term efficiency of investment and resource utilization decisions in the entire economy. Electricity efficiency has two components: supply side and demand side efficiency. Inefficiencies in transmission and distribution include low system power factors, transformer inefficiencies, poor quality cables and lack of system optimization. System losses, about 15.5 % in 2000, need to be reduced to 10%. A wide ranging demand side management program would improve load management for large energy users, introduce building standards, industrial audits to improve lighting and motors and design more efficient public lighting. These measures could reduce demand by about 700 MW and save US$400 million by 2010. The Government is working towards these goals by: (a) promoting energy conservation and efficiency, (b) increasing and structuring electricity tariffs to raise internally generated surpluses; (c) involving the private sector in power generation and developing natural gas supplies; and (d) promoting privatization/ equitization of distribution functions. Table 1. Load Demand Forecasts 2000-2020 Year 2000 2005 2010 2015 2020 itNow Scenrio ;. t ., . : GWA.,. , :. c, tjkaG i .: C I GW Electricity Generation 26,000 42,031 64,553 96,906 142,113 Demand (MW) 4,487 7,380 10,680 15,803 22,849 Be° 1 i; 0 A. , _I_Al _____ ____ s - F.* Electricity Generation 26,000 46,459 70,437 109,439 167,022 Demand (MW) 4 487 7,802 11,653 17,847 26,854 Electricity Generation 26,000 49,009 78,466 126,949 201,367 Demiand (MW) 4,487 8,230 12,982 20,703 32,376 Source: PDP-5 and Bank Staffestimates b. Low rural access to electricitY: Rural electrification is a critical element of the Government's program to eliminate poverty and redress imbalances in development. Ambitious rural electrification targets have been established and work has commenced. About 20 million people in Vietnam, representing about 4 million households, still have no access to electricity. Electricity consumption patterns are also skewed, with urban dwellers who account for about 20% of the population accounting for over 80% of the total residential consumption. Expansion of rural electricity access is crucial for two reasons. First, electricity access will make it possible to improve overall welfare levels by providing reliable lighting sources, improved health care and services. Second, by providing electricity for irrigation and other productive activities (e.g. weaving, etc.) the productivity and incomes of rural residents can be increased. The key issues in rural electricity delivery are: (a) securing adequate resources for investments that are economically justified but not financially viable; (b) defining and implementing methods for rural grid and off-grid management, maintenance and services that do not overextend central electricity providers and maximize local participation; and (c) designing tariff structures that recover costs without distorting incentives for local generation and efficiency. The Government is addressing the above issues by: (a) issuing a Rural Energy Policy Paper and preparing national decrees for implementation of rural electrification programs; (b) nomninating the Ministry of Investment (MOI) to promote, coordinate and manage the renewable energy program for the country; and (c) working with the World Bank in designing investment projects for rural electrification that would address the issues noted above. c. Barriers to renewable energy: Decentralized electricity production from renewable energy sources can be economically viable. However, the scale of applications is too small to obtain any significant economies of scale in production or sales or justify establishing the necessary infrastructure to assure 5 sustainability. Work done to prepare the Renewable Energy Action Plan (REAP) identified the following major barriers: (a) lack of policy and institutional mechanisms; (b) insufficient information about renewable energy technologies, their cost and performance, available to stakeholders at all levels; (c) few commercial businesses provide renewable electricity equipment and services; (d) lack of credit for renewable energy suppliers, developers of community mini-grids and grid-connected projects, or household purchase of systems; (e) unavailability of high quality technology; and (f) inadequate resource data. The Government is gradually realizing the potential of renewable energy for decentralized electricity supply and has embarked, with assistance from the Bank, on a programmed approach to renewable energy development by (a) nominating MOI as the central agency for promotion and coordination of renewable energy programs and (b) developing a renewable energy action plan (REAP), in consultation with local agencies and donors, which lays out a policy framework and long term program. However, much work and capacity building still needs to be undertaken. d. Managerial and administrative capacitv of sector institutions: Institutions in the Vietnam's energy sector are managerially and administratively weak. Much of this weakness results from inadequate staff skills and organizational systems to operate in an increasingly commercial environment. Moreover, Vietnamese government agencies and power enterprises have been unable to decentralize decision making to front-line staff and exercise administrative/ management oversight without interfering, or taking it over themselves. Consequently, there has been a lack of autonomy and associated responsibility in most energy sector institutions, resulting in low productivity. The Government has recognized the problem, and is making slow but steady progress: (a) allowing more decentralization of investment decisions, authorizing Electricity of Vietnam (EVN)'s management board to decide on investments under $40 million; (b) training government staff, to upgrade their skills and to familiarize senior officials with alternative models of governance and oversight; (c) initiating plans for the equitization of communes and districts; and (d) commissioning a commune-based utility model to develop local management. In the past five years, EVN has grown into an effective utility and its performance indicators, both physical and financial, place it among the top utility performers in the region. e. Financial sustainability of the power sector: It is estimated that investments of the order of US$ 1.2-1.5 billion per year - about 5 % of GDP - would be required for this decade (Table 2). Financing this investment requires a strategy to increase significantly the inflow of external capital within prudent limits and the amount of self generated surpluses in the public utility EVN available for investment in the sector. EVNs financial performance, since its creation in FY95 to date, has been satisfactory on the strength of high demand growth and rapid expansion of the Vietnamese economy. The strong performance was reflected in EVN's financial ratios: from FY96-98, the operating margin averaged 17% and the self- financing ratio (SFR), 36%.The regional financial and social crisis of FY97/98 severely constrained access to extemal financing and revenue sources to support Vietnam's development. However, EVN sustained its satisfactory financial performance and strong results largely due to the continued robust demand for power. During the period FY98-00, the operating margin averaged 14% and the SFR, 34%. Reflecting EVN's growing reliance on external long-term debts to finance capital expansion, the debt service coverage ratio (DSCR) has been declining in recent years from its peak of 38 in FY98 to 3 in FY00. Sustained financial viability of EVN, in view of its investment needs, is critically dependant on the level of power tariffs in the country. 6 [...]...Table 2 Investment Needs of the Power Sector 20 00 -20 20 (Base Case) (US$ million) No List 20 00 - 20 05 20 06 - 20 10 20 11 - 20 20 20 00 - 20 10 20 00 - 20 20 I Power plant 4, 125 4 ,20 5 9,139 8, 329 17,468 11 Power Transmission grid 1, 127 1,094 2, 628 2, 221 4,849 III Power Distribution network 2, 259 1,889 4,380 4148 8, 528 Total Source: PDP-5 and Bank staffestimates 7,511... average 25 %) Capacity MW 600 715 140 100 4 32 72 715 100 140 35 300 600 720 70 27 3 100 Plant Coal fired Pha Lai 2 Phu My 3 Phu My 2. 1 add on Coal fired Na Duong Phu My 4 Hydro Can Don Phu My 2. 2 Coal fired Cao Ngan Phu My 2. 1 extension add on Hydro Bac Binh Coal fired Uong Bi extension Gas Turbine Omon 1 Gas Turbine Ca Mau Hydro Rao Quan Hydro Sesan 3 Hydro Dakdrinh Year Commissioned 20 02 2003 20 03 20 04 20 04... approximately $20 0 million for the first year of operation Fuel price is projected to increase at a fixed 2 % per annum in accordance with the GSA MECO has projected the following project tariff breakdown 26 Table 5: Summary of Project Tariff Breakdown (US cents/kWh) Project Operaton Year Fuel Charge All-in Tariff 1 2. 25 4 .26 5 2. 43 4.15 10 2. 67 3.97 15 2. 94 3.90 20 3.19 4.08 Source: MECOprojections The Project. .. are other small regional independent diesel power projects As regards projects under the BOT framework, IL for the first BOT project - the 715 MW combined cycle Phu My 3 Project of BP-led consortium (negotiated deal), was issued in June 20 01 and for the proposed 715 MW Phu My 2- 2 Project in September 20 01 It should also be noted that a few other private power projects were negotiated with foreign sponsors... 6-1 Key Social Issues / Participatory Approach: The Project is an expansion of the Phase 1 of Phu My 2 power project financed by IDA under the Power Development Project (Cr .28 20 of February 1996), for which an Environmental and Social Impact Assessment (EA) was previously prepared by IDA in compliance with Bank policies and guidelines The Phu My 2- 2 power station does not require any land expropriation... 20 04 20 04 20 04 20 04 20 05 20 05 20 06 20 06 20 06 20 07 20 07 20 07 20 07 Note Coal Gas/IPP Gas Coal/IPP Gas Hydro/IPP Gas/lPP Coal/APP Gas Hydro Coal Gas Gas/IPP Hydro Hydro Hydro Source: World Bank estimates based on WASP HI study carriedout by EVNfor PDP-V ' Based on an assessment carried out in 1997 comparative cost estimates of different plants were: (a) Gas fired combined cycle gas turbine -2. 92 cents/kWh;... procedures and guidelines.'° The proposed Project is an expansion of Phase 1 of Phu My 2 power project financed by IDA under the Power Development Project( CR 28 20 of February 1996), for which an EA was previously prepared An EA has been prepared for this Project and has been approved by the Department of Science Technology and Environment (DOSTE) of Vung Tau City on May 25 , 20 01 A public consultation process... IDA power projects During negotiations on the System Efficiency Improvement, Equitization & Renewables (SEIER) project in May 20 02, State Bank of Vietnam (SBV) provided the Implementation Plan proposed by the State Pricing Committee and approved by the Prime Minister on May 24 , 20 02 The Implementation Plan provides for the following schedule: October 1, 20 02 April 1, 20 03 April 1, 20 04 July 1, 20 05... gas-fired power plants, which may lead to a gas surplus in 20 02- 2003 and temporary shortage in 20 04 -20 05 This risk would be mitigated by the fact that the Block 06-1, which is being developed by BP-led consortium to start producing gas in late 20 02 with gas supply obligation to The first tariff increase is a condition of effectiveness of the SEIER credit approved on June 25 , 20 02 16 PV of 2. 7bom/year... general The economic assessment of the proposed Project, taking into account prospective economic and power sector developments in Vietnam over the 22 -year project cycle (20 02- 2 024 including a 2- year construction period) indicates that it will deliver net economic benefits under a considerable range of adverse conditions The base case returns is an ERR of 24 % and a net present value of US$ 667 million . 20 00 - 20 10 20 00 - 20 20 I Power plant 4, 125 4 ,20 5 9,139 8, 329 17,468 11 Power Transmission grid 1, 127 1,094 2, 628 2, 221 4,849 III Power Distribution network 2, 259 1,889 4,380. power tariffs in the country. 6 Table 2. Investment Needs of the Power Sector 20 00 -20 20 (Base Case) (US$ million) No. List 20 00 - 20 05 20 06 - 20 10 20 11 - 20 20 20 00 - 20 10. 20 03 Gas/IPP Phu My 2. 1 add on 140 20 03 Gas Coal fired Na Duong 100 20 04 Coal/IPP Phu My 4 4 32 20 04 Gas Hydro Can Don 72 20 04 Hydro/IPP Phu My 2. 2 715 20 04 Gas/lPP Coal