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UK player eyes power
Graham Bell and Associates Limited is eager to invest in Kien Luong thermal power and port complex, one of the largest energy projects in Vietnam.
The UK firm recently sent a document to Kien Giang Provincial People’s Committee to express its interest in the complex, which is now mainly developed by the domestic private Tan Tao Group.
Tan Tao is facing the possible withdrawal of its investment certificate because the construction has been delayed for two years amid the group’s financial trouble. The complex is considered vital as the demand for electricity in the southern province and Vietnam outpaces the supply.
Kien Luong power and port complex was licenced in January 2008. Located in southern Kien Luong province, approximately 300 kilometres south of Ho Chi Minh City, the complex with the estimated investment capital of $7 billion, would have the total generation capacity of up to 4,400-5,200 megawatts. It also features the deepwater seaport Nam Du.
Huynh Van Gianh, director of Kien Giang Provincial Department of Industry and Trade, told VIR that Graham Bell and Associates Limited could ask for being a new developer of the complex instead of setting up a joint venture with Tan Tao Group.
“Currently, we are waiting for the governmental guidelines and those from the ministries of Industry and Trade and Planning and Investment,” said Giang, adding that Tan Tao Group had poured about VND800 billion ($40 million) into site clearance of the project.
“The end of this June is the deadline for Tan Tao Group to give us the answer if it could continue carrying out the project. We already sent the documents to the investor requesting it to explain the delay. However, there has been no feedback since last year,” he said
Under Vietnam’s power development strategy until 2020, Kien Luong power complex would start commercial operation in 2018.
Minister of Industry and Trade Vu Huy Hoang also gave a warning to the domestic investor in his working visit to Kien Giang province late last month.
Previously, Tan Tao Group general director Thai Van Men said the firm had disbursed $250 million into Kien Luong complex and explained that the firm was stalling the construction because it had not yet received the governmental guarantee and undertaking agreement (GGU) for this giant project. Tan Tao Group’s equity in this project is equal to 20 per cent of the total investment capital, or $1.4 billion.
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