Tan Tao Group plans to begin construction project of Kien Luong power plant in Dec

Thai Van Men, general director of Tan Tao Industrial and Investment Joint Stock Co (coded ITA) confirmed at the meeting with the steering board of Kien Luong Power Centre project that the company would overcome the difficulty and try to kick off the Kien Luong 1 thermo power plant next December.

At present, the company was facing with three main obstacles that needed to be resolved in order to start up construction works on Kien Luong 1 thermo power plant as scheduled.

The first obstacle was that the investors lacked the materials for ground levelling purposes. The company had sent the document to the local functional authorities for permission to explore the mines in those mountains of Hon Tre, Ong Cop, Huynh and Son Tera. However, the Kien Giang province Department of natutal resources and environment had sent response in document to ITA, pointing out that there was no resourses left for exploitation purposes in the province at present.

Le Khac Ghi, director of the provincial department of planning and investment suggested the ITA’s leaders to deal with two main obstacles of negotiating the power purchase agreement (PPA) with Electricity of Vietnam (EVN) Group and seeking for government-guaranteed loans.

The total investment capital for Kien Luong 1 thermo power plant was estimated at 40 trillion dong, 90 percent of which was loans. At present, ITA was working with 15 consulting agents to discus with large banks under international credit organisations and China’s Sinosure Insurance Corp for lending capital. Especially, Sinosure had already approved in principle for offering insurance loans for the project, after getting the commitment from the government and power purchase agteement with EVn. After getting the loans, the company can appoint the EPC contractor for Kien Luong 1 thermo power plant.

At present, the project’s main investor of Tan Tao Energy Joint Stock Co was negotiating the power price with EVN Group as well as convincing the relating functional authorities so as to get the government’s approval for offering guaranteed loans in order to conduct the large project in time. – Vietstock

Tags: Kien Luong power plan, Vietnam energy

Posted by VBN on Oct 2 2010. Filed under Energy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry