There are 19 BOT thermopower projects developed by foreign investors

A report of the Ministry of Industry and Trade (MOIT) said there are 19 BOT thermopower projects developed by investors from all over the world, including the US, Japan, South Korea, Malaysia, Singapore, Thailand and China.

Of these, Chinese hold the controlling stake in three projects, namely Vinh Tan 1, Vung Ang 2 and Vinh Tan 3.

The Vinh Tan 1 – Binh Thuan was developed by China Southern Power Grid (CSG) which holds 55 percent of capital, China Power International Holding (CPIH) and Vietnam’s Vinacomin.

The project kicked off in June 2015. It is expected that the power generator unit No 1 would be put into commercial operation on December 16, 2018 and No 2 in June 2019.

In Vung Ang 2 project, Hong Kong’s One Energy holds 48.45 percent of capital. The other two investors are Vietnam’s Lilama and REE. However, they are seeking MOIT’s permission to let One Energy become the only investor of the project.

In January 2017, MOIT and investors signed the investment agreement for the project. However, the agreement still has not taken effect as some problems remain unsolved. The electricity buy/sell contract has been initialed by the Electricity of Vietnam (EVN) and investors.

One Energy also contributes 55 percent of the Vinh Tan 3 – Binh Thuan’s capital, with EVN 29 percent and IPP 16 percent. The plant is expected to become operational by the third quarter of 2023. The electricity generator unit No 2 would be put into operation in the first quarter of 2024.

Chinese also make investment in other thermopower projects, where they do not hold the controlling stake. These include Mong Duong 2, developed by Americans, the biggest capital contributor, and South Korean and Chinese.

In Mong Duong 2, CIC from China only holds 19 percent of shares. The plant became operational in April 2015.

Most recently, MOIT consulted with ministries about the plan to transfer Long Phu III project from PetroVietnam to Chinese investors. The ministry revealed that one investor and one group of investors have expressed their willingness to develop Long Phu III.

The Chinese investor is a familiar name – CSG, one of two Chinese state-owned power corporations, providing electricity to five southern provinces in China. By September 2017, it had provided 33.4 billion kwh of electricity to Vietnam.

MOIT has recently suggested the Prime Minister to assign the Quynh Lap 1 project to Geleximco (Vietnam) and Hong Kong United Ltd (HUI) instead of Vinacomin. Sources said that this is just one of many projects the joint name targets to.

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