Foreigners allowed undertaking in EVN-refused power projects

(Updated at 10:19' 6/11/2008)

The Government of Vietnam has allowed foreign investors to undertake in the power projects which the Electricity of Vietnam (EVN) has refused.

Deputy Prime Minister Hoang Trung Hai has asked the Ministry of Industry and Trade to guide investors to implement the 13 projects EVN has ‘given back’. Foreign partners will be allowed to join forces with domestic economic groups and general corporations to implement the projects.

EVN will undertake two of the 13 projects, including Duyen Hai 1 (in Tra Vinh Province) which has the capacity of 2 x 600MW, and VInh Tan 2 (Binh Thuan province) which has the designed capacity of 2 x 600MW.

The other two power projects, which have the capacity of 2 x 600MW, will be assigned to foreign contractors. Malaysia’s Janakusa Group (Duyen Hai 2 project, 2 x 600 MW, Tra Vinh Province) and China Southern Power Grid (Vinh Tan 1 project in Binh Thuan province) will take over the projects.

Three other large projects, which have the capacity of 2 x 600MW and higher, will be assigned to three Vietnamese groups. The Vietnam National Oil and Gas Group (PetroVietnam) will undertake the 2 x 600MW Long Phu 1 project in Soc Trang Province. Lilama Corporation will undertake the Vung Ang 1 project in Ha Tinh province in the central region. Meanwhile, the Vietnam Coal and Mineral Industries (Vinacomin) will get the Hai Phong 3 power project.

The large 2 x 1000MW Vinh Tan 3 project in Binh Thuan province will be assigned to the group of contractors, including EVN and o­ne Energy and Pacific Corporation. The group of Lilama, REE, and o­ne Energy will undertake the 2 x 600MW Vung Ang 2.

The remaining three projects, including Duyen Hai 3, Long Phu 2 and Long Phu 3, are still under consideration.

The Deputy Prime Minister has asked the Ministry of Industry and Trade to prepare documents for international bidding for the Vung Ang 3 and Quang Trach thermo power plants. The bids need to be organized soon in order to ensure the previously set schedules of the projects. In case investors are slow in implementing projects, the Ministry of Industry and Trade will have to suggest replacing them with other investors.

The reasons that EVN gave was that it could not arrange enough capital for all power projects, and in August they decided to ‘give back’ 13 projects which it was assigned to undertake. EVN said that it has been negotiating with many domestic and foreign banks to look for capital for the projects. However, many banks have rejected to give loans, as they fear that EVN will not be able to pay debts when the electricity prices are low and the inflation rate is high.

VNE, VNN
From: en.infotv.vn