Notice of extension of credit period for Song Bung 5 hydropower project according to the gold standard and clean development mechanism (GS-CDM)




Power Engineering Consulting Joint Stock Company 1 – PECC1 (Investor of Song Bung 5 Hydropower Plant) cooperates with Energy and Environment Consultant Joint Stock Company – VNEEC (CDM Consultant) and Buyers Reducing emissions Vietnam Carbon Assets Ltd. extended credit period for the second time to Song Bung 5 hydropower project under the mechanism of GS-CDM.

The second credit period of the project is expected to start from July 1, 2019 and end on June 30, 2026.

“Song Bung 5 Hydropower Project, Vietnam” non-technical description

The project activity, which is owned by Power Engineering Consulting Joint Stock Company 1, involves the construction of a two generating unit hydropower plant having installed capacity of 57MW.

The main structures of the project include a dam, water intake, penstock, a power house, transformer station and transmission line, etc. The project is located on Sông Bung river in Ma Cooih commune, Dong Giang district and Thanh My town, Nam Giang district, Quang Nam province, Vietnam. The project activity will generate renewable power with negligible GHG emissions, which will displace part of the electricity otherwise supplied by fossil fuel fired power plants.

Contribution to sustainable development

Environmental sustainability

  • The project encourages hydropower utilization to generate electricity, which otherwise would have been generated through alternate fuels (most likely fossil fuels) based power plants, contributing to reduction in specific emissions (emissions of pollutant/unit of energy generated) including GHG emissions.
  • Being a renewable energy source, hydro energy used to generate electricity contributes to resource conservation and reduces reliance on exhaustible fossil fuel based power sources as well as the need to import fuels for the purpose of power generation.

Economic sustainability

In recent years, Vietnam has suffered a critical electricity shortage as a consequence from rapidly increasing demand and insufficient supply, thereby imposing negative impacts on economic growth as well as on daily lives of people. The project will directly contribute towards balancing the supply and demand gap. By exporting electricity directly to the national grid, it will help to reduce electricity losses across the national grid and to lessen the risks of cascading national grid collapse due to overload.

Moreover, the CDM project will

  • Increase employment opportunities in the area where the Project is located, which will give an increase in local community’s income in general;
  • Facilitate the industrialization process through the provision of stable power and enhance the local investment environment and thereby improve the local economy;
  • Diversify the sources of electricity generation, important for meeting growing energy demands and the transition away from diesel and coal-supplied electricity generation;
  • Contribute to poverty alleviation through income and employment generation: the Project will employ people throughout project operation.
  • Contribute towards the tax revenues of the province.

Social sustainability

  • Proposed project would lead to the development of the region.
  • During civil work, the proposed project is expected to generate considerable employment opportunities for the local population.
  • Other than these, there are various kinds of mechanical work, which would generate employment on regular and permanent basis.

Technology sustainability

  • Modern and highly efficient turbines and generators will be used under this project, which in turn will accelerate the deployment of renewable energy technologies in Vietnam.
  • Song Bung 5 hydropower project, Vietnam supports technological and know-how transfer from other regions or even other countries through trainings and practical works.

In conclusion, Song Bung 5 hydropower project, Vietnam will contribute positively towards sustainable development and be consistent with the energy policies set by the Government of Vietnam. Therefore, it satisfies the sustainable development criteria for CDM projects set by the DNA of Vietnam.


Details of the project are mentioned in the section below.

Please send your comments to the project:

  1. Song Bung 5 Hydropower Plant

Address: Thanh My Town, Nam Giang District, Quang Nam Province

Phone number: +84 905.305.885


  1. Power Engineering Consulting Joint Stock Company 1 – PECC1

Adress: Km 9+200 Nguyen Trai Street, Thanh Xuan Nam Ward, Thanh Xuan District, Hanoi City
Phone number: +84 (24) 3854.4270 – Fax: (24) 3854.1208


  1. Energy and Environment Consultant Joint Stock Company – VNEEC

Address: 8th Floor, Diamond Flower Building, 48 Le Van Luong, Hanoi
Phone number: 024 6666 9753; Fax: 024 6666 9755


  1. Vietnam Carbon Assets Ltd.

Address: Technoarkstr.1, Zurich, Switzerland

Phone number: +41 435 013 550; Fax: +41 435 013 599


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