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Supporting Dam Nai, Vietnam to completion

The first foreign-owned wind farm in Vietnam, Dam Nai, has achieved successful completion, becoming commercially operational in early 2019. The project was developed in two phases using a multi-contracting strategy, split into three main contracts - turbine supply, civils, and substation.

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Appointed as owner’s engineer and responsible for project and construction management, K2 Management is proud to have created significant value for both clients and stakeholders.

The project, which is now in the operation and maintenance phase, comprises of 15 2.625MW Siemens Gamesa wind turbines, constructed across two project phases. The first phase, 7.875 MW, was completed in 2017/8 with the second phase becoming operational early 2019. The project has been developed by TSV and The Blue Circle with the sponsorship of Armstrong Asset Management. BIDV, a Vietnamese bank, participated in the financing of the project.

Turning challenges into opportunities

The project was not without its challenges - tight time constraints and integrating a high number of local workforces from different contractors made for a more complex challenge, heightened by the fact that Vietnam is a relatively new market for wind energy projects.

However, attributing the right expertise to deliver the owner’s engineer, project management, construction management and strong back-office engineering, meant the project was in good hands. The client did a fantastic job, developing this project in a particularly challenging environment. Daily collaboration between the client’s development team and K2 Management’s team made this project not only feasible but also a success story in the region.

Our scope

The project management role delivered support from the early stages of development through take over, including contractor evaluation and selection, contract drafting and negotiation, insurance management, project reporting, interface and contract management and regular progress monitoring.

With a full owner’s engineer scope (Civil, Electrical, and WTGs), K2 Management undertook a design review, site inspection of the entire balance of plant, particularly around critical milestones, and wind turbine and substation activities from factory inspections through final commissioning. The team also delivered ad-hoc support for urgent engineering issues using input from our site team.

In emerging markets like Vietnam common issues can arise, such as an immature or sometimes non-existent supply chain and inadequate infrastructure. These are not insurmountable problems and being able to flex and adapt to conditions and utilize what is available locally was a part of our Owner’s Engineer scope. This approach enabled us to both mitigate risks for the client but also to comply with local content regulations and maintain a robust business case.

The construction team collaborated closely with the developer on construction activities, contractor management, health and safety issues, construction quality, project documentation and planning to secure contract, timeline and budget compliance.

Celebrating project successes!

Having a good team was not the only thing key to the success of the project - communication also played an integral part. Our construction team consisted of both international and local staff, where an international mindset, experience and practices met with hands-on local knowledge. The team’s diversity ensured that compliance with local regulation and practices were met, while still maintaining an international standard of work.

Health, Safety and Environment (HSE) is inherent in everything we do at K2 Management, and we know that a generic HSE plan will not fit every project. The HSE plan created for Dam Nai was customized to suit the individual elements of the project while considering the local market to ensure that those working on the project were fully engaged, all the while complying with international best practice. By following this detailed and bespoke plan, no accidents were reported across more than 600,000 manhours on-the site during the last two years.

Patrick Architta, Business Development Director at K2 Management, stated: “We were delighted to be appointed again in this role for Dam Nai and are proud to have seen this project through from the development phase to completion. With a mix of local professionals and international experts from across the energy sector, we had a strong team in place and this is reflected in the completion of this flagship wind project for Vietnam.”

Armstrong Asset Management

K2 Management has an excellent reputation in the region and brought the level of expertise and guidance required to successfully commission this project. Using their vast experience on energy projects combined with local knowledge and insight into how to get construction right, we are proud to see Dam Nai operational.

Armstrong has a mandate to invest in renewable energy projects in Asia, and the completion of Dam Nai will contribute to our energy development goals in Vietnam.

Edward Douglas
Partner

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