EVN and CDP exchange Letter of Intent for cooperation in Bac Ai Pumped Storage Hydropower Plant project

DNVN - Within the framework of the Vietnam-Italy Business Forum held on the morning of September 4 in Hanoi, chaired by the Ministry of Finance, Vietnam Electricity Group (EVN) and the Italian State Development Bank (CDP) exchanged a Letter of Intent on cooperation in the Bac Ai Pumped Storage Hydropower Plant project.

EVN Deputy General Director Nguyen Xuan Nam (front row, left) presented the Memorandum of Understanding with partner the Italian State Development Bank.

The forum was organized by the Ministry of Finance in coordination with the Italian Trade Promotion Agency (ITA) and the Italian National Confederation of Industry (Confindustria).

Attending the forum were Mr. Ho Sy Hung - Deputy Minister of Finance of Vietnam, Mr. Valentino Valentini - Deputy Minister of Enterprise and Italian Manufactured Products, representatives of ministries, branches, the Italian Embassy in Vietnam, along with more than 200 Vietnamese enterprises and nearly 100 Italian enterprises.

The EVN delegation was led by Mr. Nguyen Xuan Nam - Deputy General Director of EVN.

At the forum, Deputy General Director Nguyen Xuan Nam represented EVN to exchange Letters of Intent with partners in the fields of Energy and Infrastructure, witnessed by leaders of Italian and Vietnamese Ministries; attended parallel thematic discussions on high technology and innovation and attended bilateral business meetings (B2B) with organizations and enterprises.

The Bac Ai Pumped Storage Hydropower Project (the Project) is the first pumped storage hydropower project in Vietnam that has been approved for investment by EVN. The project is part of the list and schedule of important power source and grid projects, prioritized for investment by the Electricity sector in the period 2021-2030 according to the National Power Development Plan for the period 2021-2030, with a vision to 2050 (Power Plan VIII) approved by the Prime Minister in Decision No. 500/QD-TTg dated May 15, 2023.

At the same time, the project was also approved by the Ministry of Industry and Trade to be added to the list of power plants operating in coordination with large power plants, which are of special importance in terms of socio-economics, national defense and security; with the task of generating peak power with a maximum capacity of 1,200 MW to the national grid system during peak hours, pumping water from the lower lake to the upper lake to store energy during off-peak hours, contributing to flattening the load chart of the power system with 7 hours of maximum peak power generation per day. In addition, the project also has the effect of frequency regulation, reactive power compensation, and spinning reserve for the system.

On May 12, 2025, EVN and a group of 6 lending organizations including the French Development Agency (AFD), the German Reconstruction Bank (KfW), the Japan International Cooperation Agency (JICA), the European Investment Bank (EIB), the Italian State Development Bank (CDP) and Proparco Company signed the General Terms (Term Sheet) to arrange capital for the Bac Ai Pumped Storage Hydropower Plant project, as a basis for implementing the next steps.

Nguyen An

Source: https://doanhnghiepvn.vn/doanh-nhan/evn-va-cdp-trao-y-dinh-thu-hop-tac-trong-du-an-nha-may-thuy-dien-tich-nang-bac-ai/20250904044807568