03:01 (GMT +7) - Saturday 03/12/2016

Vietnam Today

$1.75 billion for Binh Thuan power plant

Released at: 15:47, 20/07/2015

$1.75 billion for Binh Thuan power plant

Vinh Tan 1 coal-fired thermal power plant one of the key projects approved by the PM to develop electricity supply from 2011 to 2020.

by Hoai An

A ceremony was held in Hanoi on July 18 to announce the construction of the Vinh Tan 1 coal-fired thermal power plant in south-central Binh Thuan province, to be built under the build-operate-transfer (BOT) mode.

The plant will be located at the Vinh Tan Power Center and have a capacity of 2x600 MW, with total investment of around $1.75 billion. The China Southern Power Grid Co., Ltd, the China Power International Development Co., Ltd, and the Vietnam National Coal - Mineral Industry Holding Corporation Ltd (Vinacomin) will contribute 55 per cent, 45 per cent, and 5 per cent of the capital, respectively.

Construction is expected to take 48 months and the payback time for investors is 25 years, when the plant will then be transferred to the Vietnamese Government.

Director General of the General Department of Energy under the Ministry of Industry and Trade, Mr. Dang Huy Cuong, said that with its large capacity and investment the project will play an important role in ensuring power supply throughout the country.

The plant will begin commercial operations in 2019 with output of 9.5 billion kWh annually. The first machinery line will be in commercial operation in December 2018 and the second in June 2019.

The Vinh Tan 1 coal-fired thermal power plant is one of the key projects approved by the Prime Minister in planning for the development of national electricity supply from 2011 to 2020 and will resolve power shortages in the southern region. The project also marks the official start of applying advanced technologies in Vietnam’s thermal power sector. 

Project history

  • On November 16, 2006 a memorandum of understanding between MoIT and China Southern Power Grid Co., Ltd was signed.
  • In October 2013 the Ministry of Planning and Investment granted investment licenses to establish a management business for the project, called the Vinh Tan 1 Power Co., Ltd.
  • In December 2013 MoIT and other investors signed a contract under the BOT mode to guarantee agreements and commitments of the government, create power purchase contracts, coal supply, and transportation contracts.
  • In October 2014 the Vinh Tan 1 Power Co., Ltd and banks signed credit contracts worth $1.4 billion.
  • On July 18, 2015, the announcement ceremony was held.

User comment (0)

Send comment