A joint venture between French firms Alstom and Bouygues has won a contract from Electricity of Viet Nam (EVN) to supply all electrical-mechanical equipment for the 2400MW Son La scheme.

The Euro 190M (US$270M) contract was signed yesterday in Paris by EVN and the JV, alstom Hydro, upon the state visit of the prime minister of Vietnam, Nguyen Tan Dung. The project, which is the biggest hydro power scheme in Vietnam, will be the sixth supplied in the country by alstom-hydro.

Under the contract, Alstom Hydro will design, engineer, manufacture and deliver six 400MW Francis turbines and generators to the surface power house of the Son La project, which is expected to generate about 10BkWh annually, or a fifth of its power demand. In addition, it will also provide training and supervise the installation, testing and commissioning of the units between 2010-12.

The Son La project, being built at the Da river in the north of the country, involves construction of a 138m high, 900m long RCC dam. The total volume of the structure is 4.6Mm3, of which 3Mm3 is RCC. The peripheral spillway has a discharge capacity of 35,000m3/sec.

In addition to hydro power, the multipurpose project is also designed to help flood management and supply irrigation flows locally.

Last week, EVN signed a deal with four banks in Vietnam for a US$1.1B loan for the project, which is almost half the capital cost. The group of banks was led by the Vietnam Bank for Agriculture and Rural development (Agribank).