A bright perspective of the Lot B – O Mon project chain

In this document, the Government suggests:

1/ The Ministry of Industry and Trade (MoIT) to consider the Electricity of Vietnam (EVN) proposals relevant to the adjusted issues in the draft Power Development Planning VIII (PDP VIII) to submit to the Prime Minister for the considering and deciding.

2/The Committee for Management of State Capital at Enterprises to direct EVN to urgently prepare necessary conditions to submit the investment policy for O Mon 3 thermal power project this project rightly after issuing the Decree by the Government for replacing the Decree 56. The Committee for Management of State Capital at Enterprises and EVN are comprehensively responsible for the project efficiency and progress.

Therefore, after synthetizing opinions and comments from the Ministries and Agencies for draft Decree replacing Decree 56, the Government officially issues a document for communicating directed opinion of the Standing Deputy Prime Minister Pham Binh Minh for directing EVN to reserve ODA loan for O Mon 3 project.

At the same time, the Government Office also issued document No 6535?VPCP-CN to assign MoIT for handling and answering the proposals of EVN and the foreign investors on commercial loans for this project.

As well known, the O Mon 3 power project with using ODA loan is behind schedule for 4 years from the date when EVN submitted the project investment policy and prefeasibility study report. The reason of the status was not identified the agency to appropriate project prefeasibility study report for the government to approve investment policy. This delay also brought about deadlock of Lot B – O Mon gas pipeline.

At present, the draft Decree replacing Decree 56 has been submitted by Ministry of Planning and Investment to the Prime Minister for approving and this Decree expects to be issued in 2021.

The Decree replacing Decree 56 that should be issued soon is very important for appropriating and approving the investment policy and deciding investment in O Mon 3 power project. So, the Government, relevant Ministries and Agencies would take more drastic measures for as soon as possible to promulgate it for Lot B – O Mon coming to be synchronously deployed.

As known, at present, PetroVietnam actively prepares parallel activities as commercial negotiation and loan arrangement and directs PQPOC and SWPOC to deploy EPC/EPCI packages for integrating upstream, midstream and downstream to speed up Lot B – O Mon chain into synchronous implementation.