BOT thermo-power projects underway

Legal framework for BOT thermo-power projects to be perfected

Vietnam began to implement BOT thermo-power projects in 1997, but has so far completed only three. To remove obstacles facing the sector for the remainder, Deputy Prime Minister Hoang Trung Hai asked the Ministry of Industry and Trade to coordinate with ministries and agencies to review the legal framework for BOT thermo-power projects in mid-2015.

The Ministry of Industry and Trade later approved the General Directorate of Energy prepared Circular 23/2015/TT-BTC on the development of BOT thermo-power projects, and sought prime ministerial approval of the handling of Independent Power Producers (IPP) and behind schedule BOT thermo-power projects, amended Decision 2414/QD-TTg on the adjustment of power projects and related specific mechanisms and policies on urgent power investment during the 2013-2020 period.

Positive results

One of the major achievements in BOT thermo-power development last year was that the Mong Duong 2 Thermo-power Plant officially began commercial operation four months ahead of the schedule. The Vinh Tan 1 Thermo-power Project also started construction on June 16, 2015 and fulfilled its financial obligations for two months ahead of schedule.

Some other BOT thermo-power projects were concluded. For example, the Duyen Hai 2 Power Project which was granted investment certificate in September 2015, signed BOT contract on December 29, 2015 and is expected to fulfill the financial obligations by December 2016. The Nam Dinh 1 Power Project has an investment agreement initialed on January 18, 2016. The Song Hau 2 Power Project has the first round of negotiations finished and is waiting for the second round. The Kien Luong 1 Power Project has all negotiations finished and a memorandum of understanding signed to deployed in December 2015. The Nghi Son 2 Power Project is expected to have an investment agreement signed in January 2016.

Source: VEN