The Bac Ai pumped-storage hydropower project in the south-central province of Khanh Hoa has secured two international loan agreements worth 76 million EUR (88.2 million USD) each.

Deputy Prime Minister Ho Duc Phoc and European Commissioner for International Partnerships Jozef Sikela witness the signing ceremony of a loan agreement between the French Development Agency (AFD) and Vietnam Electricity in Hanoi on March 24.

Vietnam Electricity (EVN) and French partners presented the loan agreements to the project developer at the EU – Vietnam Global Gateway Business and Investment Forum in Hanoi on March 24. These agreements form part of a broader financing package comprising six loans from a consortium of international lenders.

Bac Ai is Vietnam’s first pumped-storage hydropower plant. With four turbines and a total installed capacity of 1,200 MW, it is a key energy project playing a central role in the country’s energy transition.

The plant is designed to regulate power supply and demand by storing energy during off-peak hours and generating electricity during peak periods, thereby helping to stabilise the load curve and enhance the flexibility of the national power system.

According to the schedule, the first turbine is expected to be completed in December 2029, while the fourth will be finished by December 2030. The entire project is slated for full completion by May 2031.

As a flagship project demonstrating international support for Vietnam, it involves partners such as the European Union (EU), the French Development Agency (AFD), Germany’s KfW Development Bank, the European Investment Bank (EIB), the Japan International Cooperation Agency (JICA), Italy’s Cassa Depositi e Prestiti (CDP), and Proparco, a French development finance institution.

The project highlights the effectiveness of close international cooperation and provides a strong foundation for implementing large-scale, critical infrastructure.

It is expected to contribute to national energy security while advancing Vietnam’s transition toward a green and sustainable economy.

Co-organised by the EU Delegation to Vietnam, the Foreign Investment Agency under the Ministry of Finance, and the European Chamber of Commerce in Vietnam (EuroCham), the forum brought together around 500 representatives from government agencies, financial institutions, and leading enterprises from Vietnam and the EU.

At the event, a series of cooperation, investment, and financing agreements were announced across sectors including energy, green finance, transport, vocational education, digital transformation, and healthcare.

Notably, the EU unveiled an investment package worth over 560 million EUR for Vietnam, focusing on energy transition, sustainable transport development, and infrastructure capacity enhancement.

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