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

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. 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 1200 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 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 co-operation and provides a strong foundation for implementing large scale, critical infrastructure.