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Foreign investors want power projects   2008-10-30 - Dan tri

Six foreign investors have expressed their willingness to become the investors of the power projects that the Electricity of Vietnam (EVN) has refused to invest in.


EVN refuses 13 power plant projects, why?


The six foreign investors include EDF Group, Malaysia’s Toyo and Janakusa Groups, CIRI/CRP joint name, CPISB Group and Ukraine’s Kharkov province.


The Ministry of Industry and Trade (MOIT), which is now in charge of allocating power projects, said that it would prioritize with the investors who have the letter of introduction from the Prime Minister.


The MOIT has decided that the 13 projects will not be divided into smaller projects in order to economize manpower and take full advantage of the common infrastructure. The 13 projects will become nine big projects after they are rearranged to better serve execution and operation.


The MOIT has also decided that three domestic investors will undertake six projects out of the 13.


EVN will undertake the Long Phu 3 power project in Soc Trang Province, while the Vietnam Coal and Minerals Industries will be the investor of the Hai Phong Power Centre 3, and the Vietnam National Oil and Gas Group (PetroVietnam) will be the investor of the Quang Trach Power Centre. Each centre includes two projects.


As such, three power projects are still seeking investors, including Duyen Hai 2, Duyen Hai 3 and Vung Ang 3 Power Centres.

As said above, the investor who has the letter of introduction from Prime Minister will have the privilege. Therefore, the MOIT has suggested allocating the Duyen Hai 2 project, which has the expected capacity of 1,200MW to Malaysia’s Janakusa Group, as the group has shown the letter of introduction from the Prime Minister.


This spells that five foreign investors will vie to get the right to undertake the remaining two projects, Duyen Hai 3 and Vung Ang Power Centre. According to the MOIT, the selection of investors will be made through bidding. The investors to be chosen will be the ones who have the financial capability, experience in construction investment, management, and project operation. They need to ensure there are stable sources of coal supplies for the projects. They also have to make the commitment to develop the project in accordance with the approved process and regulations.


EVN in August decided to refuse to make an investment in the 13 projects which the government assigned to the group. EVN said it has negotiated with many banks and capital providers, but it could not arrange the loans. The lenders do not want to provide loans because they fear that EVN cannot pay debts with such low electricity prices.


According to EVN, the total investment capital needed for the power projects is estimated at VND 43 trillion, but EVN could arrange VND 36 trillion only.


Two weeks after EVN gave back the 13 projects, PetroVietnam officially asked to undertake the 13 projects. However, the MOIT has decided to grant the projects to many investors.

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