BOT thermal plants make slow progress
Thermal power plants under the Build-Operate-Transfer (BOT) model are expected to significantly increase the power supply in Viet Nam once they are up and running. However, some projects have stalled due to problems with land clearance and capital allocation.
According to the National Power Grid Development Plan for the 2011-20 period with a vision to 2030, eight BOT thermal power plants should be completed, but progress at some sites has been slow.
Investors have asked the Government to make tax exemptions for imported materials, and said that developing infrastructure should be a common responsibility for all investors.
A representative from the Mong Duong 2 plant, which is 40 per cent completed, said that under the BOT contract, by December this year, infrastructure such as trainlines for the plant will have been completed, but progress had been slow.
Electricity of Viet Nam (EVN) had said they would provide a 500KV transmission line to plants in Quang Ninh, but work is yet to start on these projects.
Nguyen Chien Thang, deputy director of the Viet Nam National Coal and Mineral Industries Corporation (Vinacomin), told online newspaper Cong Thuong (Industry and Trade) that his corporation was determined to supply coal to Mong Duong 2 Plant, and in the worst scenario, would transport coal by road.
The Ministry of Industry and Trade (MoIT) needed to deal with land clearance issues at the Vinh Tan 1 and 3 thermo-electric plants. Vinacomin had spent VND800 billion (US$38.4 million) on land clearance but they didn't know how they would make their money back, Thang said.
Dang Hoang An, deputy general director of EVN, said that they would complete the 25-km transmission line to connect the Mong Duong 2 Plant and Quang Ninh's Ha Long City.
The cost of land clearance would be covered by electricity prices. The main issue was where to source investment capital, An said.
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