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Vietnam Energy Forum

Updating the investment progress of independent power projects in Vietnam

 - At present, in Vietnam, there are 10 independent power projects (IPPs) with a total capacity of 11,092 MW. However, there are only 4 projects in development. The rest projects still encounter difficulties and obstacles in capital mobilization and land clearance.

The developing IPP projects have been behind schedule for many years and with too many latent risks. The developing projects include follows:

1/ Hoi Xuan Hydropower Project (102 MW) with the operation time as 2018 in Power Development Planning VII (PDP VII adjusted):

Hoi Xuan Electricity Construction and Investment Joint Stock Company - project Investor informed that they finalized 98% of the volume of main items and expected to continue construction and accumulate water by the end of 2022.

The land compensation, clearance, and construction for flood prevention in Quan Hoa district (Thanh Hoa province) expect to be immediately after the loan disbursement. The investor added that after signing Power Purchase Agreement (PPA) between Hoi Xuan VNECO and EVN, the investor had a working meeting with the domestic credit institutions to arrange added loans but a number of procedures were prolonged due to the Covid-19 pandemic. The added capital arrangement expects to return by the end of 2022 and the Hoi Xuan HPP should be put into operation by early 2023

2/ Cong Thanh Thermal Power Project (1x600 MW), in PDP VII (adjusted), the project operation schedule was by 2020:

The EPC contract and capital arrangement have been signed between Cong Thanh company and a consortium of Trung Nam Design Institute (CSEPCDI) and Quang Dong Power Electricity Group (GPEC) – China. However the Chinese Government issued a policy to interrupt foreign capital for coal power thermal projects, so Cong Thanh company is studying to transiting coal to import LNG and finding partners for arranging capital to continue implementing the project.

PPA was signed with the EVN Power Trading Company by February 27, 2020. Currently, the land compensation, site clearance, and leveling of the main ground to the design level were finalized.

Recently, on July 4, 2022, Thanh Hoa Provincial People's Committee submitted the written documents to the Prime Minister and the Ministry of Industry and Trade to approve transiting from coal to LNG fuel and change the capacity to 1,500 MW in PDP VIII.

3/ An Khanh Thermal Power Project, Bac Giang Province (1x650 MW) – In PDP VII (adjusted) the project operation schedule will be from 2022 - 2023:

For this Thermal Power Project although the investor has negotiated a commercial loan from the Industrial and Commercial Bank of China(ICBC), due to policy changes from the Chinese Government, the investor changed arranging loans to the domestic banks. Currently, the investor continues to complete the loan procedures to pay for the EPC contract.

Up to now, the compensation and site clearance for the main plant area was completed, and the procedure for the second phase of the land lease.

The investor reported that the area of ​​the projected ash and slag ground and the corridors of the pipelines... will be completed by December 2023 at the latest.

4/ O Mon 2 Gas Thermal Power Project (1,050 MW) which should be put into operation by the 2022-2023 period in accordance with PDP VII (adjusted)

On June 20, 2022, the investor group (Marubeni - Vietracimex) submitted to the Ministry of Industry and Trade the feasibility study report (FS) of the project. It is known that the Ministry of Industry and Trade is currently requesting the investor group to supplement all documents on fire prevention and fighting and report on the environmental impact assessment of the project according to regulations.

As for negotiating commercial agreements: On June 20, 2022, the Vietnam Oil and Gas Group (PVN) sent a notice to the Group about the ability to supply Block B gas for the O Mon 2 Thermal Power Plant.

On June 27, 2022, the Group (Marubeni - Vietracimex Joint Venture) had a written reply to PVN that the group unites with PVN proposal with noting the same points for the sides to finalize negotiation and signing the commercial agreements for O Mon 2 Gas Thermal Power Project.

The Group proposed the schedule of gas selling agreement (GSA) needs to be synchronous with PPA and asked PVN to supply the other gas resource after B lot gas runs out for ensuring 25 years of PPA.


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