$2.3-billion Nam Dinh power plant making headway

The consortium including Saudi Arabian ACWA Power and South Korean Taekwang Power Holdings Co., Ltd. officially received an investment certificate for the $2.3-billion Nam Dinh 1 thermal power project, making it the seventh foreign-invested build-operate-transfer power project licensed in Vietnam.

The licensing ceremony was held on July 2 in the northern province of Nam Dinh. The event marks an important milestone for the delayed project, which should significantly contribute to Vietnam’s electricity supply in the future.

Paddy Padmanathan, president and CEO of ACWA Power, said, “Being granted the investment certificate represents a significant step in the project’s development and, more importantly, it demonstrates a commitment by the Vietnamese government to protect foreign investors and encourage the participation of private investors in the country’s infrastructure projects.”

According to investors, after nearly nine years of development, getting the investment certificate is one of the most important milestones after the investment agreement was signed between the Ministry of Industry and Trade and investors in January 2016.

Rajit Nanda, chief investment officer at ACWA Power, said, “Ceremonies like the one taking place today reaffirm ACWA Power’s commitment to Vietnam. The country has built a comprehensive plan for power delivery and paired it with a robust legal and economic system that encourages private international investment in critical infrastructure projects.”

He added that ACWA Power looks forward to supporting Vietnam in meeting its energy needs over the decades to come.

Nam Dinh 1 is the seventh foreign-invested power project licensed in Vietnam since the country opened its doors to foreign direct investment three decades ago.

The 1,200-megawatt (MW) plant is an independent greenfield power project to be developed on a build-operate-transfer (BOT) basis. It is part of the 2,400MW Nam Dinh thermal power complex.

The project is scheduled to commence construction in early 2018. The first unit will enter commercial operations within 51 monts, while the power facility will take 57 months.

The investment consortium will operate for 25 years. The project will be financed by Export-Import Bank of Korea and Korean Trade Insurance Corporation.

South Korean Posco E&C has been selected as a preferred bidder for the engineering, procurement, and construction (EPC) contractor of the project.

The plant’s annual production will be 7,800 gigawatt-hours, which will be a considerable contribution to power generation in northern Vietnam, in line with the development strategy presented in the nation's power development strategy.

The investment of the Nam Dinh 1 project with international financing sources will help ease the financial burden brought on by the increased power demand during the 2020-2025 period and later on.

Phuong Thu / VIR