09:20 | 25/11/2019 Industry
(VEN) - In order to meet Vietnam’s high economic growth, Vietnam Electricity (EVN) has recently accelerated the progress of ongoing power projects and is gearing up to launch new projects soon.
However, the latest report by the Ministry of Industry and Trade on the implementation of electricity projects in the Adjusted Power Planning VII showed that of 62 projects with capacity of over 200 MW, 15 were on schedule, while the remaining 47 projects were behind schedule.
According to the Adjusted Power Planning VII, 23 projects invested by EVN were planned for the 2016-2020 period. So far, eight have been put into operation, four are under construction, and 11 are in various stages of pre-construction preparation.
In 2019, EVN expects to complete four power projects with a total capacity of 1,560 MW, including the Duyen Hai 3 thermal power extension project (660 MW), the Vinh Tan 4 thermal power extension project (600 MW), the Da Nhim hydropower extension project (2nd phase - 80 MW), and the Thuong Kon Tum hydropower extension project (2x110 MW).
Most other projects in the Adjusted Power Planning VII, like the Quang Trach 1 and 2, Dung Quat 1, Dung Quat 3 and O Mon thermal power projects; the Hoa Binh and Ialy hydropower extension projects, and some other solar power projects, have been submitted to authorities for examination and approval.
The slow progress of some projects is attributed to various reasons, such as the asynchronous electricity development planning of different ministries and sectors, unsuitable regulations on investment and construction, and complex site clearance works. In addition, the projects also face difficulties in raising capital resources from domestic commercial banks, or Official Development Assistance (ODA), especially when the government no longer acts as a guarantor for loans in this field.
Following the involvement of various ministries, especially the Ministry of Industry and Trade and the Committee for Management of State Capital at Enterprises, EVN's Member Council has approved several power projects for investment.
For example, construction of the VND9.22 trillion Hoa Binh hydropower expansion project for two turbines with total capacity of 480MW is expected to start in the 2nd quarter of 2020 and operation is forecast for 2023. Construction of the Ialy hydropower extension project (360 MW) with total investment capital of nearly VND6.4 trillion will start in the 1st quarter of 2021. Its two turbines are expected to generate electricity in the 2nd quarter of 2024 and 3rd quarter of 2034, respectively. EVN will manage 30 percent of the capital for both projects, with the remaining 70 percent to be borrowed from commercial banks, without government guarantees.
The acceleration of EVN’s power projects will contribute to increasing capacity for Vietnam’s power system, meeting
power demand for sustainable socioeconomic development.