VINACONEX AND THE JOINT VENTURE SECURE VND 4,300 BILLION CONSTRUCTION CONTRACT FOR BAC AI HYDROPOWER PROJECT PHASE 2

The joint venture of 7 construction contractors including Lung Lo Construction Corporation, Song Da Corporation, Truong Son Construction Corporation, VINACONEX (VCG), LILAMA 10 (L10), SCI E&C (SCI), and Construction Joint Stock Company 47 has just secured the main construction package at the first pumped storage hydropower project in Vietnam, with a total package value of more than VND 4,300 billion.

On February 13, 2025, the contract signing ceremony for Package 02XL-BA of the Bac Ai Pumped Storage Hydropower Plant Project Phase 2 (Stage 1) was held at the headquarters of Vietnam Electricity (EVN). 
The event brought together representatives from Commission for the Management of State Capital at Enterprises, the Ministry of Industry and Trade, EVN leadership, Vietnam Electricity Power Projects Management Board No.3 leadership and the joint venture of contractors for package No. 02XL-BA.

Following an open domestic bidding process conducted online, a joint venture of leading construction contractors including Lung Lo Construction Corporation, Song Da Corporation, LILAMA 10 Joint Stock Company, SCI E&C Joint Stock Company, Construction Joint Stock Company 47, Truong Son Construction Corporation, and Vietnam Construction and Import-Export Joint Stock Corporation (VINACONEX), secured the contract for Package No. 02XL-BA, valued at VND 4,334 billion. 

These are all experienced contractors in implementing many key energy projects in Vietnam, particularly Song Da Corporation, a key player in major hydropower developments, including Son La Hydropower - the largest hydropower project in Southeast Asia, Hoa Binh HPP, Lai Chau HPP, etc. Besides, Lung Lo Construction Corporation has also established itself as a vital force in hydropower and irrigation, with approximately 55% of its annual revenue from these critical sectors. Regarding VINACONEX, as a contractor, investor and manager - operator, has successfully executed several hydropower projects, including Cua Dat HPP (Thanh Hoa), Buon Kuop HPP, Buon Tua Sha HPP, Ngoi Phat HPP (Lao Cai), Dak Ba HPP (Quang Ngai).
Package No. 02XL-BA is the main construction package of the project with key components of the project include the construction and installation of pressure tunnels, upstream surge tank, underground powerhouse, 500kV switchyard, discharge tunnel, lower surge tank, and lower valve chamber; underground tunnels and adits; access roads for construction and operation; 22kV power supply system, water supply system for construction and domestic use; auxiliary facilities, worker camps and offices.
The contract implementation period is about 81 months, in which Unit No. 1 is scheduled to begin operations in December 2029, followed by Unit No. 2 in April 2030, Unit No. 3 in August 2030, Unit No. 4 in December 2030 and the entire contract is expected to be completed in May 2031.

Located in Ninh Thuan province, it has a planned capacity of 1,200 MW, featuring 4 turbine/pump-generator/engine units, each generating 300 MW. The total investment of the Bac Ai pumped storage hydropower project is about VND 21,100 billion, sourced from loans and EVN’s allocated funds.

According to the representative of EVN, the project, backed by the Government, the Ministry of Industry and Trade, Commission for the Management of State Capital at Enterprises and local authorities in Ninh Thuan, has received unwavering support at every stage—from meticulous planning and contractor selection to the enforcement of safety, progress and quality standards. 

Expressing honor at being entrusted with this nationally significant project, the representative of the joint venture pledged to mobilize all necessary resources to meet the project timeline and support Vietnam’s sustainable energy goals.

As the first pumped storage hydropower plant in Vietnam, the Bac Ai HPP holds both economic and strategic importance. Designed to store and regulate energy, it will help stabilize the national power grid, mitigate electricity shortages during peak demand periods, and strengthen energy security. The project is a cornerstone of Vietnam’s renewable energy strategy, playing a vital role in advancing the country’s transition toward a more sustainable and resilient energy future.