Launching Ceremony of Vinh Tan Thermal Power Plant Phase 1 BOT Project Is Held in Vietnam

Launching Ceremony of Vinh Tan 1 Thermal Power Plant BOT Project.  Photo by Sun Weifeng

On the morning of July 18, the launching ceremony of Vinh Tan Thermal Power Plant Phase 1 BOT Project was held in Hanoi, capital of Vietnam. Mr. Zhongshan, International Trade Negotiation Representative and Vice Minister of the Ministry of Commerce of China, Mr. Hu Zucai, Vice Minister of National Development and Reform Commission of China, Mr. Tran Tuan Anh, Deputy Minister of Ministry of Industry and Trade of Vietnam, Mr. Hoang Thanh Canh , Vice Governor of Binh Thuan Province, Mr. Dang Huy Cuong, Director General of the Energy Administration of Ministry of Industry and Trade of Vietnam, and Mr. Zhao Jianguo, Chairman of the project investor, CSG, co-pressed the launching button, which symbolized the official launching of project construction. After the ceremony, Mr. Zhang Gaoli, Member of the Standing Committee of the Politburo of the Central Committee of Chinese Communist Party and Vice Premier, and Mr. Nguyen Xuan Phuc, Member of the Central Committee of Vietnamese Communist Party and Deputy Prime Minister met Chinese and Vietnamese construction workers of the project. They also listened to briefings on the project from CSG and the Ministry of Industry and Trade of Vietnam.

Vice Premier Zhang expressed greetings and best wishes to the project investors, project EPC contractors and construction workers. He made three instructions: firstly, the Chinese team including CSG and China Power International should ensure a high standard construction. Works must be done to make sure that the quality, progress, social benefits and environmental protection capacity of the project could stand the test of history and contribute to boosting social and economic development and bettering the life of the Vietnamese people. Secondly, relevant parties and construction teams from both sides should work closely and create every condition for smooth construction. Thirdly, China and Vietnam are good comrades and brothers. The project should be built into a model project symbolizing the friendship of our two countries and contribute to China-Vietnam friendship and cooperation.

Mr. Nguyen commented that the Vinh Tan project concerned the well-being of both peoples and it was not only a project of economic cooperation but also a political one. He demanded that the project should be pushed forward in accordance with the contract so as to ensure a good operation status in the 25-year franchise period. He also instructed the local authority to provide due services to the project.

Chairman Zhao Jianguo of CSG reported the progress of the Vinh Tan project. He thanked the leadership of China and Vietnam for continuous attention and support during the past 8 years. He expressed CSG’s resolution to work closely with the project team to fully implement China’s “Belt and Road” initiative with the support from the Chinese and Vietnamese governments. He made sure that the project would be built into a model project demonstrating the highest level of construction and management of the Chinese electric power industry, and a project showcasing the pragmatic cooperation between the two nations. The Vinh Tan project is expected to contribute to the social and economic development of Vietnam and to the economic and trade cooperation between China and Vietnam.

Located in Binh Thuan Province, Vietnam, the Vinh Tan 1 project would be installed with 2 600MW Ultra Supercritical Thermal Power Units with a total investment of USD 1.755 billion. It is the biggest power plant investment of a Chinese enterprise in Vietnam and the first BOT electric power project of a Chinese enterprise in Vietnam. CSG is the biggest shareholder of the project, while GEDI of Energy China and GPEC of Energy China are co-contractors. All main and auxiliary units used for the project are manufactured in China.

The construction period of the project is 4 years while the franchise period is 25 years. The project will be transferred to the Vietnamese government free of charge when franchise period expires. Loans for the project will be provided by a bank consortium consisting of China Development Bank, Bank of China, etc. It is estimated that Unit 1 will be put into operation by the end of 2018 while the plant is expected to be in full operation in the first half of 2019.

Currently, CSG transmits electricity to Vietnam through 3 lines of 220 KV and 3 lines of 110 KV, covering to the largest extent of 12 provinces in northern Vietnam. Counting from 2004 when the first line was put in operation, to the end of 2014, CSG’s total transmission of electricity to Vietnam registered 30.2 TWh.

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Time-lines of the Vinh Tan project

In November, 2006, witnessed by Mr. Hu Jintao, then General Secretary of Chinese Communist Party, and Mr. Nong Duc Manh, General Secretary of Vietnamese Communist Party, a Memorandum of Understanding on the Investment and Development of Vinh Tan 1 was signed in Hanoi.

In October, 2013, during his visit to Vietnam, Premier Li Keqiang, together with Prime Minister Nguyen Tan Dung, witnessed the presentation of BOT license of Vinh Tan 1 to CSG from the Ministry of Planning and Investment of Vietnam.

In December, 2013, the Chinese and Vietnamese side signed BOT contract, GGU, agreement on electricity purchasing, agreement on coal supply and agreement on coal transportation of Vinh Tan 1.

In October, 2014, a financing agreement of the Vinh Tan 1 was signed. In June, 2015, the first term of loan was granted and the preparation work all set.

On July 18, 2015, the launching ceremony of Vinh Tan 1 BOT project was held in Hanoi. After the ceremony, Mr. Zhang Gaoli, Member of the Standing Committee of the Politburo of CCP Central Committee and Vice Premier of the State Council met investors and construction workers of the project.