Vietnam: Hai Duong pressures delayed thermal power plant

Vietnam: Hai Duong pressures delayed thermal power plant

The Hai Duong People's Committee is seeking solutions for the $2 billion,
1,200 megawatt Hai Duong thermal power plant, in case the investors continue
to delay with the construction.

The committee has requested the PM to direct ministries and relevant
authorities to urge the co-investors, namely Malaysian Jaks Resources Bhd.
and China Power Engineering Consulting Group Co., Ltd. (CPECC), to implement
the construction on schedule as previously committed. The province asked the
PM to issue treatment measures for the continuous delay.

This is the second time the province submits the proposal to the PM. In
August 2016, after receiving the first request, the PM directed the Ministry
of Industry and Trade (MoIT), in collaboration with the Ministry of Planning
and Investment to prepare a report on the investors' financial capacity as
well as the difficulties causing the long delay in construction, and propose
the necessary measures.

On March 27, the project's construction was kicked off. This is the latest
movement since its ground-breaking ceremony organised by Jaks Resources in
September 2011.

Earlier in early 2014, suspicions arose regarding the Malaysian investor's
financial capacity to carry out the project in the context of the project's
delay in construction.

In July 2015, Jaks Resources announced signing a co-operation deal with
CPECC to implement the project. Accordingly, their equity will make up 25
per cent of the total investment capital, while the remaining 75 per cent
will be covered by loans. The project will be developed under a
build-operate-transfer (BOT) model.

According to Jaks Resources chairman Tan Sri Datuk Husun Bin Haji Ismail,
CPECC has the necessary financial resources and extensive experience in
constructing thermal power plants, thus the co-operation will massively
accelerate construction.

However, since the construction was restarted on March 27, no development
has been forthcoming.

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Ref:
http://english.vietnamnet.vn/fms/business/165177/hai-duong-pressures-delayed
-thermal-power-plant.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com