Vietnam May Select Foreign Investors for 13 Power Projects

The Vietnam Energy Association has recently proposed the government to invite foreign investors to pump capital in some among 13 power projects with a combined capacity of 13,800 MW that state-owned Electricity of Vietnam Group (EVN) has recently declined, the Vietnam News Agency reported.

 

Selected investors should have experience in building coal-fired power plants, and embrace good financial competence and stable coal supplies, the agency quoted Mr. Tran Viet Ngai, chairman of the association as saying.

 

It will take at least nine or 10 years for investors to complete the projects on schedule while domestic designing and consulting companies are not competent enough to fulfill the task, the official attributed.

 

According to the association’s estimation, every 1,000 MW of power costs up to US$1.3 billion; therefore, EVN is unable to mobilize such huge capital as over VND300 billion (US$18.18 billion) for the projects neither import sufficient coal to fuel the power plants.

 

The association recommended the Vietnamese government to approve state-owned oil monopoly PetroVietnam group and the Vietnam National Coal and Mineral Industries Group (Vinacomin) to invest in some of the power projects to take advantages of their strength and share financial burden with EVN.

 

Also, the government should speedily map out suitable power price hike roadmap to attract investment in the electricity sector as well as ensure schedules of power projects.

 

In the dry season of 2009, northern Vietnam is forecast to face a severe power shortage of 200 million kWh.

 

Vietnam will lack 8.6 billion kWh of power this year. The country’s power lack will peak at 10.3 billion kWh in 2009 but will considerably fall to around 7.2 billion kWh in 2010. (Vietnam & World Economy)