The announcement was made during the second Global Gateway Forum, held in Brussels on October 9–10.

The funding package was unveiled in the presence of European Commissioner for International Partnerships Jozef Sikela, Vietnamese Deputy Prime Minister Bui Thanh Son, and representatives of participating countries and partners attending the forum.

Speaking at the event, European Commissioner for International Partnerships Jozef Sikela described the project as a crucial foundation in the joint efforts between Vietnam and Europe to build a green, stable, and sustainable energy system. He emphasised that through the Global Gateway initiative, the EU is turning its commitments into concrete actions “for people, the planet, and shared prosperity.”

The Bac Ai Pumped Storage Hydropower Plant, located in former Ninh Thuan province, is a key infrastructure project approved by the Prime Minister as part of Vietnam’s National Power Development Plan for 2021–2030, with a vision extending to 2050.

Designed with a total capacity of 1,200 MW, the project comprises four turbine/pump-generator units, each rated at 300 MW. The total investment for the project is approximately VND21,100 billion (nearly EUR700 million), financed through a combination of loans and allocated capital from Electricity of Vietnam group (EVN).

The first generating unit is expected to begin operation in December 2029, and unit 4 will be completed in December 2030, with full project completion scheduled for May 2031.

The project is set to enhance the stability of Vietnam’s national power grid, facilitate the large-scale integration of renewable energy sources, and contribute to the country's carbon emissions reduction and sustainable development goals.

The EUR430 million package is being mobilised under the Team Europe approach, which includes the EU, its member states, and several European development finance institutions. Contributors to this package include the French Development Agency (AFD), the European Investment Bank (EIB), the German Development Bank (KfW), Italy’s national development agency (CDP), and PROPARCO, the private-sector arm of AFD.

Between 2021 and 2027, the EU has committed to providing at least EUR293 million in support to Vietnam, with the total European contribution to JETP exceeding EUR2.8 billion. This investment is aimed at promoting green infrastructure development, supporting a sustainable energy transition, and strengthening regional power connectivity across ASEAN.

Vietnam mobilises over US$7 billion for just energy transition

Vietnam has so far mobilised more than US$7 billion for its just energy transition agenda under the Political Declaration on the Just Energy Transition Partnership (JETP).