Two power projects worth US$4.8 billion approved

HANOI– Two large thermo-power projects capitalized at US$4.863 billion have been approved, contributing to boosting foreign direct investment approvals in the first half of 2017.

A report of the Ministry of Planning and Investment says Nghi Son 2 thermo-power plant project involving a Japanese investor will cost over US$2.79 billion and have a capacity of about 1,200 MW.

The investor of this build-operate-transfer (BOT) project is not known but in November last year, Japan’s Marubeni Corporation and Korea Electric Power Corporation (KEPCO) signed an agreement with the Vietnamese Ministry of Industry and Trade to develop Nghi Son 2 thermo-power plant.

The plant will have two generators, with each having a capacity of 600 MV, and be located in Nghi Son Economic Zone in the northern province of Thanh Hoa. The facility will be fueled by coal to be imported from abroad.

With a total investment of nearly US$2.8 billion, this is one of a few BOT thermo-power plant projects approved in Vietnam. Nghi Son 2 thermo-power plant is also the largest foreign-invested project in the first six months, helping Thanh Hoa attract the most foreign investment capital in Vietnam, at US$3.06 billion, accounting for 15.9% of the country’s total.

Another large thermo-power project approved is Nam Dinh 1 thermo-power plant which costs an estimated US$2.07 billion. It will also run on coal and have a capacity of about 1,100 MW.

According to an investment certificate issued by the Ministry of Planning and Investment in mid-June, the project will be developed under the BOT format on 242 hectares in Hai Chau and Hai Ninh wards, Hai Hau District, Nam Dinh Province.

The project made Nam Dinh the third largest recipient of foreign capital in the first half with US$2.19 billion, accounting for 11.4% of the country’s total.

There are some BOT power projects in Vietnam already put into operation, including Phu My 1, 2 and 3 thermo-power plants in Ba Ria-Vung Tau Province.

However, experts have called for the Government to take greater caution when approving thermo-power projects as they are potential environmental polluters.

Source: The Saigon Times