Signing EPC contract for Nhon Trach 3 and 4 power projects

The signing ceremony of EPC contract for Nhon Trach 3 and 4 power plant projects and other related agreements. (Photo: Petrotimes).

The Nhon Trạch 3&4 EPC contract with a total value of 940 million US$ including 39% of domestic capital is considered the most important one that determinates the success and efficiency of the project.

The EPC contract of Nhon Trach 3 and 4 power projects signed between PV Power and the consortium of contractors Samsung C&T, Lilama is considered the most important contract, fundamentally deciding the success and efficiency of the project. Contract value more than 940 million USD; in which, the domestic part accounted for 39%.

The gas turbines combined cycle (GTCC) and Distributed Control Systems (DCS) of Nhon Trach 3&4 power plants provided by General Electric (GE), Gas Turbines H Class belong to the most advantaged and modern generation at the present. Besides, a Home Owners Association (HOA) on maintenance, long-term repair for the main equipment (LTMA) of Nhon Trach 3 &4 power plants was also signed between PV Power and GE.

Regarding investment capital, PV power committed to ensuring arranging surficial capital for the projects including 25% equity, 75% loans from export credit (ECA) with 600 million US$, from foreign commercial sources with 300 million US$ and from domestic banks with 4,000 billion VND.

In order to realize loan capitals, PV Power signs an extended term Letter of Authorization for Citi Bank (USA) and ING (Netherlands) to coordinate and arrange ECA loan source for Nhon Trach 3 and 4 Power Plant Projects.

PV Power and Japanese Bank SMBC will sign a letter for appointing 200 million US$ to finance the projects of PV Power, accordingly the Citi, ING banks continue to support PV Power by working with ECA organizations for arranging long-term loans for Nhon Trach 3 &4 power plants.

SMBC also becomes a bank lender that gives ECA loans without origin binding, collateral and Government guarantee. EVN or Domestic Joint Stock Commercial banks finance the projects of PV Power including Nhon Trach 3 &3 with a loan term up to 12 years including a grace period.

Nhon Trach 3&4 power plants expect to be put into commercial operation in 2024-2025. The projects would contribute to promoting clean energy transition and open a period of developing LNG power projects in Vietnam, and increase tax revenue by the thousand billion VND/year for Dong Nai province.