Investing in the construction and development of small and medium hydropower projects in Northwest provinces is always a special concern of the Party, the State and governments at all levels, as well as the interest of many companies in the region and beyond. Vietnam Business Forum has an exclusive interview with Mr Tran Dinh Hai, President and CEO of Hung Hai Group Joint Stock Company, to learn more about small and medium hydropower construction plans in Northwest provinces.
Could you please tell us the role and significance of developing small and medium hydropower projects in northwest provinces?
Once in operation, small and medium hydropower projects hold a particularly important role in the mountainous Northwest provinces. These projects efficiently utilise hydropower potential; contribute significantly to industrial production value; help restructure the economy towards the pace of national industrialisation and modernisation; and increase power output to the national grid. We also take advantage of available natural energy sources and save increasingly scarce fossil fuels like coal, oil, and gas; regulate water flows and supplies for agricultural production, transportation and people’s livelihoods, especially in the dry season, and prevent flooding in the rainy season. Further, many supporting infrastructure works relating to transport, irrigation, electricity and water will be invested, built, upgraded and restored, thus helping raise the capacity of infrastructure systems in remote areas. In addition, small and medium hydroelectric projects will help reduce power loss in transmission of the national grid system, supply electric energy to remote areas, increase State budget revenue, create many new jobs, and improve the environment.
Hydropower potential is huge but the overheated development of small and medium hydropower projects is raising concerns about the risk of breaking overall planning strategies and causing downstream damage. As a company with many hydropower projects in this area, would you be kind enough to share some solutions to overcome these issues?
Hung Hai is an experienced investor of small and medium hydropower plants in the northwest region. When it implements its projects, Hung Hai always introduces and applies specific requirements to the management boards, contractors and designers to ensure safety in the process of construction, operation, and especially safety for downstream works. Specifically, they are required to strictly comply with investment and construction provisions and safety and quality regulations. Right from the start, the company pays very close attention to project surveys and technical designs which are made in full detail. These works not only benefit the company but also ensure safety for projects and downstream areas during project construction and operation. Before embarking on a project, Hung Hai always considers community interests at the forefront and has project benefit-sharing measures with local residents. The firm respects all environmental protection commitments, and ensures timely information about water regulation to make sure of community safety.
Hung Hai is building Song Ma 3 Hydropower Plant in Dien Bien. So, to ensure project progress, work quality and labour safety, how has Hung Hai prepared?
This project, with a capacity of 29.5 MW, is built on the upstream of the Ma River. With an annual output of 104.48 million kWh, this is a significant additional source of electric energy for Dien Bien and Son La provinces, as well as the national power system. Dong A Company, a member company of Hung Hai, is the investor of the project. The company is responsible for setting up the Project Management Board and the Construction Site Steering Committee powered by experienced engineers and staffs. The company is working with local governments to complete legal procedures, make compensation, clear construction site, and prepare supporting works to kick off the project, expected in the second quarter of 2014. Hung Hai Group also told the investor to request the Project Management Board, the Construction Site Steering Committee, contractors, designers and builders to absolutely follow procedures, regulations and design standards and strictly ensure requirements on environmental protection, occupational safety, construction quality and progress.
Do you have any recommendations for authorities to improve the business environment and attract more investors to Dien Bien province in particular and the northwest region in general?
In order to help us carry out investing activities and build hydroelectric projects as well as create an attractive environment for investors in the Northwest region, we propose that provincial governments set up Steering Committees for Construction Affairs, develop small and medium projects for investors to access, and support enterprises to deal with difficulties arising from tight credit access and legal procedures. Provincial governments need to support investors to speed up land compensation and site clearance, and support training fees and investment credits. They only need to review development plans, including electric transmission lines, to support local projects. They also need to support investors to negotiate with power selling companies as well as provide tax incentives for local enterprises.
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