Study for the Development of the Power Market and Competitive Tender Framework for Thermal IPPs in Vietnam

The general objective of this consultancy is to provide the following assistance to Ministry of Industry (MOI), Vietnam to Draft a framework to set the principles, guidelines and general procedures to implement tenders for thermal IPPs under the general BOT framework existing in Vietnam, ensuring an efficient and transparent competitive process; Analyze and develop principles and mechanisms for the coordination between planning and investment in natural gas and in gas fired generation; and Develop a strategy to harmonize the IPP program with the future competitive power markets approved in the Roadmap, with the objective of attracting sufficient private investment at the best possible prices and conditions prior to the initiation of wholesale competition, and at the same time minimize risk of stranded costs and impediments to the efficient development of the market roadmap.

The following services were provided for this assignment:

• Providing Assistance to the MOI in designing the general framework for procurement and competitive tender of thermal BOT generation

• Creating a level playing field for private investors along with assurance of transparency

• Drafting of standard principles and procedures for tenders of thermal generation projects

• Developing standard rules that would apply to all thermal BOT tenders and hence achieving a level of standardization and predictability, which speeds up implementations of future BOT transaction and Power Purchase Agreements (PPAs).

• Assessment and identification of specific considerations and mechanisms to coordinate the efficient development of new thermal gas fired IPPs with development and investment in natural gas

• Assessment and design of recommended strategy to integrate IPPs in future power market with the best possible mechanisms and PPA design

• Smooth implementation of the Roadmap and mitigation of the risks of future stranded costs.