Strict management on hydro projects urged
The Ministry of Industry and Trade (MoIT) has proposed rescinding approvals for 38 medium-and-small-d hydropower plant projects across the country.
According to a ministry report submitted to Prime Minister Nguyen Tan Dung, these projects are not suitable to local conditions, have not attracted any attention from investors and will result in significant negative environmental and social impacts.
The move has rung alarm bells in the investment wave for medium-and-small-d hydropower plants.
Hot development of these projects has raised concerns over a broken planning process and the serious losses that could affect down river areas.
Following the Government guideline requiring diversification of investment types for hydropower plant projects of up to 30MW in capacity, the MoIT has approved more than 880 projects with the total capacity of almost 5,900MW in 35 cities and provinces.
In comparison to the approvals under the national small-d hydropower master plan previously approved by the Ministry of Industry (which is now MoIT) in 2005, the number of projects has soared by 160 per cent while their total capacity saw a nearly 290 per cent increase.
The projects approved to date are primarily located in the northern mountainous provinces of Lai Chau, Son La, Ha Giang, Lao Cai and Cao Bang. Nghe An and Quang Nam Provinces in the centre, and Gia Lai, Kon Tum and Lam Dong Provinces in the Central Highlands also have a large number of approved projects. The northwestern province of Lao Cai tops the list with 107 projects.
Development of small hydropower plants is a priority in the Government approved energy development strategies and policies.
However, a lack of inspection and supervision has led provincial People’s Committees to be too simple in their approvals of investment licences. They have also amended their small-and-medium-d hydropower master plans frequently, according to the MoIT.
Some provincial People’s Committees have also failed to take important factors into account during the approval process, such as social, environmental, consumption, power infrastructure and the experience of the investors, with their focus resting primarily on project economics. As a result, they have issued investment licences to too many projects, including those not in the master plan.
According to the MoIT, some small hydropower plants that have been built outside the provincial master plans could not be connected to the national power grid. Investors requested new connection points from the Electricity of Viet Nam (EVN) at a very high cost.
Energy experts said issuing investment and construction licences for many small hydropower plant projects in a short period of time would not allow for an evaluation of the potential negative environmental and social impacts in order to mitigate them in a timely manner.
Mass development of these hydropower plants might also go against the approved national hydro power master plan and the national load dispatch master plan, they said.
Assessments
Provincial People’s Committees currently assign assessments of the provincial master plans for small-d hydro power plants and technical designs of projects to provincial Departments of Industry and Trade.
However, the quality of their master plans and the technical designs of submitted projects have yet to meet ministry requirements and constant adjustments are needed because the provincial Departments of Industry and Trade have a shortage of hydropower experts and a lack of co-ordination among relevant provincial organisations over the issue, according to the MoIT.
Inefficient supervision of State regulations on construction, environmental protection, quality project management and a limited research budget were also to blame.
Energy experts said most small-d hydropower project investors were private enterprises which lacked experienced staff and failed to follow strict quality management guidelines.
Some projects didn’t fully comply with environmental protection regulations, project quality and dam safety, even though strict observation of these rules was very important to the safety of residents living along the lower parts of the river, they said.
The experts said stronger direction from the Government and relevant ministries, and tighter inspections and supervision by local authorities were essential.
Complaints and investment disputes have occurred in projects in a number of provinces, and many of the provinces have failed to send in regular investment and construction management reports as required, according to the MoIT. Only 70 per cent of the provinces have reported their investment and construction master plans.
Energy experts said it was clear that building small-and-medium-d hydropower plants would help increase industrial production values and income and generate jobs for local people.
Hydropower reservoirs would also play an important role in storing and regulating water for a variety of purposes, particularly during the dry season.
Interests
However, the experts also said the development of these projects should take other interests into account.
In addition to the proposal to exclude 38 approved projects, the MoIT has also suggested that provincial People’s Committees research and adjust the of 35 other projects that have significantly damaged the environment and society, or are in conflict with other provincial master plans.
The ministry has also required the provinces to delay construction of projects in order to stay in line with the investment progress of the power load dispatch system and timely reviews of the investment and construction of small-and-medium-d hydro-power projects.
Projects not already included in the national power connecting master plan should only be permitted to start construction from 2013, after provincial power development master plans for 2011-15 have been approved and were ready for investment, according to the ministry.
Approved projects that have failed to attract investment should also be required to undergo revisions for potential investment from 2015, according to the MoIT.
The MoIT said in the near future relevant ministries, industries and localities would be required to continue revisions of the national master plans and the issuance of investment licences, and to improve the management, inspection and supervision of the investments and construction of small-and-medium-d hydro-power plants to ensure environmental and social protections.
The ministry would co-ordinate with provincial People’s Committees to review issues regarding the capacity and expertise of investors prior to issuing investment licences.
VietnamNews
According to a ministry report submitted to Prime Minister Nguyen Tan Dung, these projects are not suitable to local conditions, have not attracted any attention from investors and will result in significant negative environmental and social impacts.
The move has rung alarm bells in the investment wave for medium-and-small-d hydropower plants.
Hot development of these projects has raised concerns over a broken planning process and the serious losses that could affect down river areas.
Following the Government guideline requiring diversification of investment types for hydropower plant projects of up to 30MW in capacity, the MoIT has approved more than 880 projects with the total capacity of almost 5,900MW in 35 cities and provinces.
In comparison to the approvals under the national small-d hydropower master plan previously approved by the Ministry of Industry (which is now MoIT) in 2005, the number of projects has soared by 160 per cent while their total capacity saw a nearly 290 per cent increase.
The projects approved to date are primarily located in the northern mountainous provinces of Lai Chau, Son La, Ha Giang, Lao Cai and Cao Bang. Nghe An and Quang Nam Provinces in the centre, and Gia Lai, Kon Tum and Lam Dong Provinces in the Central Highlands also have a large number of approved projects. The northwestern province of Lao Cai tops the list with 107 projects.
Development of small hydropower plants is a priority in the Government approved energy development strategies and policies.
However, a lack of inspection and supervision has led provincial People’s Committees to be too simple in their approvals of investment licences. They have also amended their small-and-medium-d hydropower master plans frequently, according to the MoIT.
Some provincial People’s Committees have also failed to take important factors into account during the approval process, such as social, environmental, consumption, power infrastructure and the experience of the investors, with their focus resting primarily on project economics. As a result, they have issued investment licences to too many projects, including those not in the master plan.
According to the MoIT, some small hydropower plants that have been built outside the provincial master plans could not be connected to the national power grid. Investors requested new connection points from the Electricity of Viet Nam (EVN) at a very high cost.
Energy experts said issuing investment and construction licences for many small hydropower plant projects in a short period of time would not allow for an evaluation of the potential negative environmental and social impacts in order to mitigate them in a timely manner.
Mass development of these hydropower plants might also go against the approved national hydro power master plan and the national load dispatch master plan, they said.
Assessments
Provincial People’s Committees currently assign assessments of the provincial master plans for small-d hydro power plants and technical designs of projects to provincial Departments of Industry and Trade.
However, the quality of their master plans and the technical designs of submitted projects have yet to meet ministry requirements and constant adjustments are needed because the provincial Departments of Industry and Trade have a shortage of hydropower experts and a lack of co-ordination among relevant provincial organisations over the issue, according to the MoIT.
Inefficient supervision of State regulations on construction, environmental protection, quality project management and a limited research budget were also to blame.
Energy experts said most small-d hydropower project investors were private enterprises which lacked experienced staff and failed to follow strict quality management guidelines.
Some projects didn’t fully comply with environmental protection regulations, project quality and dam safety, even though strict observation of these rules was very important to the safety of residents living along the lower parts of the river, they said.
The experts said stronger direction from the Government and relevant ministries, and tighter inspections and supervision by local authorities were essential.
Complaints and investment disputes have occurred in projects in a number of provinces, and many of the provinces have failed to send in regular investment and construction management reports as required, according to the MoIT. Only 70 per cent of the provinces have reported their investment and construction master plans.
Energy experts said it was clear that building small-and-medium-d hydropower plants would help increase industrial production values and income and generate jobs for local people.
Hydropower reservoirs would also play an important role in storing and regulating water for a variety of purposes, particularly during the dry season.
Interests
However, the experts also said the development of these projects should take other interests into account.
In addition to the proposal to exclude 38 approved projects, the MoIT has also suggested that provincial People’s Committees research and adjust the of 35 other projects that have significantly damaged the environment and society, or are in conflict with other provincial master plans.
The ministry has also required the provinces to delay construction of projects in order to stay in line with the investment progress of the power load dispatch system and timely reviews of the investment and construction of small-and-medium-d hydro-power projects.
Projects not already included in the national power connecting master plan should only be permitted to start construction from 2013, after provincial power development master plans for 2011-15 have been approved and were ready for investment, according to the ministry.
Approved projects that have failed to attract investment should also be required to undergo revisions for potential investment from 2015, according to the MoIT.
The MoIT said in the near future relevant ministries, industries and localities would be required to continue revisions of the national master plans and the issuance of investment licences, and to improve the management, inspection and supervision of the investments and construction of small-and-medium-d hydro-power plants to ensure environmental and social protections.
The ministry would co-ordinate with provincial People’s Committees to review issues regarding the capacity and expertise of investors prior to issuing investment licences.
Tags: Vietnam energy, Vietnam hydro projects
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