Ministry reassigns 13 power projects rejected by EVN

Electricity of Vietnam (EVN) will have to invest in two out of 13 power projects it recently rejected pleading lack of funds if a Ministry of Industry and Trade proposal is accepted by the government.

The ministry has recommended that the remainder be transferred to other investors. In August, EVN had turned down the power projects but in a recent dispatch to the government, the ministry wants it to set up two plants of the Vinh Tan 3 Electricity Center with a total capacity of 2,000 MW. It wants the Vietnam Oil and Gas Group (PetroVietnam) to put up the Vung Ang 3 and Quang Trach electricity centers that will have a combined capacity of 4,800 MW. Earlier PetroVietnam said it wanted all 13 projects, claiming it is fully qualified to undertake the task since it has a power arm, PetroVietnam Power Corporation. However, the ministry seeks to assign the Vietnam National Coal-Mineral Industries Group, or Vinacomin, two plants of the Hai Phong 3 Electricity Center with a total capacity of 2,400 MW on condition the group can ensure domestic coal supplies for them. The ministry has restructured the 13 projects into nine large projects to take full advantage of shared infrastructure and said the three remaining projects – the 1,200 MW Duyen Hai 2, 2,000 MW Duyen Hai 3, and 2,000 MW Long Phu 3 — would be awarded based on tenders submitted by foreign firms. Following EVN’s refusal, many foreign investors, including EDF Group, one of Europe’s leading energy players, Malaysia’s Toyo and Janakusa, had expressed their willingness to invest in the projects. Vietnam has a capacity of 10,000-11,000 MW, about 1,500-2,000 MW below peak demand, according to EVN. Demand is expected to grow at 16 percent annually until 2015. Source: TBKTSG Online