February 5, 2001

Electricity infrastructure construction projects in Vietnam are likely to fall behind schedule over the next decade despite unexpected progress last year.

A record VND 13,672 billion (US$900 million) was invested in 1,938 projects mostly the construction on power plants, 35-22kV electricity grids and transmition netwoks in 2000.

The investment helped bring into operation two turbines at the Yaly hydro-electricity plant in the Central Highlands and two turbines at the Song Hinh (Hinh River) plant in central Phu Yen province.

However, many mostly subjective problems caused the failure of some projects. The newly-working Yaly turbines need spare parts because the suppliers failed to meet their contract requirements but the project’s executives are partially to blame because they did not take concrete measures to ensure timely supplies.

There was also delay at the Song Hinh project construction site mostly caused by the test running of sub-standard equipment that took time to repair. At yet other underway sub-projects, contract-winning builders are still awaitindg official approval from responsible agencies to begin work.

Delay in construction of the Ham Thuan-Da Mi hydro-electricity complex in central coastal Binh Thuan province has been attributed to the incompetence of the project’s executives. Their administration was complex, supplies arrived late and bidding for sub-contracts was unexpectedly delayed.

The construction rate for thermo-electric power projects and electricity grids has also been behind schedule. In this case as well, bureaucratic project managers have been blamed for slow ground clearance and site allocation.

For example, the 220kV grids linking the Pha Lai hydro-electricity plant and Hai Phong in the north and the Phu My Power Plant to Cai Lay district in southern Tien Giang province have not yet been completed.

Managers have been criticised for not working for land compensation with local administrators at the site and leaving all the work to construction companies. Further, consultants were reportedly assessing the sites from maps rather than on-site exploration.

Deadlines and the quality of construction materials and equipment as well as the requirements for experts were not detailed in contracts otherwise many problems could have been avoided.