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Vietnam's second-largest electricity producer PetroVietnam Power Corporation (PV Power) has officially confirmed its approval of investment for Nhon Trach 3 and Nhon Trach 4 thermal power plants, with a combined capacity of between 1,300 to 1,760MW.
The Nhon Trach 3 and Nhon Trach 4 thermal power plants have been approved by Prime Minister Nguyen Xuan Phuc to complement the adjusted Power Development Plan VII (PDP7) in Decision No.212/TTg-CP dated February 13, 2017; and by the Ministry of Industry and Trade in the adjustment plan of Nhon Trach Power Station under Decision No.3453/QD-BCT dated September 6, 2017.
Accordingly, the total investment is estimated at roughly VND32.5 trillion ($1.4 billion). The two thermal projects will be built in Ong Keo Industrial park, Phuoc Khanh commune, Nhon Trach district, Dong Nai province. With its favourable location and solid infrastructure of the Southern key economic zone, the province of Dong Nai has become the focus of attention of property developers for years.
The construction of the plants is scheduled for the second quarter of 2021.
Earlier this year, foreign lenders Citibank and INGbank have signed a letter of authorisation to provide financial assistance to the project.
Ho Cong Ky, Chairman of PV Power, believed that Citibank and INGbank would be trusted partners thanks to their wide range of international expertise in funding power projects. The two banks would raise appropriate financial options for Nhon Trach 3 and Nhon Trach 4 thermal power plants.
Previously, Societe Generale – a French multinational banking and financial services company headquartered in Paris – expressed its keen interest in lending for the two projects.
The two plans are key investment projects of PV Power in the upcoming time and once completed, the projects will help offset power shortages in the 2021-2025 period created by construction delays of many other power plants in the south of Vietnam.
Last year, PV Power also inked an agreement with PetroVietnam Gas JSC to provide and sell liquefied natural gas for the project.
However, the firm is facing roadblocks of falling short of coal demand. At the annual shareholder meeting last month, the board of directors raised their voice of upcoming shortages of coal for Vung Ang 1 coal power plant.
Vinacomin – the major supplier of PV Power – could only provide three million tonnes of the firm’s demand for Vung Ang 1, which allegedly needs 3.4 million tonnes for this year. PV Power will likely secure the remaining 400,000-450,000 tonnes of coal from imports.