December 28, 2025 | 08:10

AFD provides loan for Vietnam’s first pumped-storage hydropower plant

Vân Nguyễn

The loan worth EUR76 million ($89.47 million) to implement the Bac Ai pumped-storage hydropower plant in central Khanh Hoa province.

AFD provides loan for Vietnam’s first pumped-storage hydropower plant
EVN Group signs a credit agreement with the French Development Agency for the loan. (Photo: evn.com.vn)

The Vietnam Electricity (EVN) Group has signed a credit agreement with the French Development Agency (AFD) for a loan worth EUR76 million ($89.47 million) to implement the Bac Ai pumped-storage hydropower plant (Bac Ai project) in central Khanh Hoa province, according to a report from the Vietnam News Agency.

This is the first of six loan packages, totaling nearly EUR480 million, provided by a consortium of six lenders for the project.

The Bac Ai project has a designed capacity of 1,200 MW, comprising four turbines of 300 MW each, with a total investment of VND21.1 trillion ($802.5 million). It is included in the list of power projects approved in principle for investment by the Prime Minister. EVN has assigned the Power Project Management Board No. 3 (EVNPMB3), as the investor’s representative.

The project holds significant importance for the national power system, especially as many renewable energy plants, including solar and wind, are being integrated. Its main task is to provide peak-load electricity, helping to smooth load fluctuations by pumping during off-peak hours and generating power during peak hours.

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