Nhon Trach 3 and 4 Dong Nai Thermal Power Plant Project: Financial Losses Due to Schedule Delays, Urgent Need for Quick Resolution”.

The Nhon Trach 3 and 4 Dong Nai Thermal Power Plant project, a major investment in Vietnam’s energy sector, is facing significant financial losses due to schedule delays. The project, which uses liquefied natural gas (LNG) and has a capacity of 1,624 MW, was expected to start test electricity generation in May and commercial operation in November as per the national energy plan approved by the Prime Minister in 2019. However, the overall progress of the project is only at about 85%, resulting in daily losses of about 12-13 billion VND for the plants.

Minister of Industry and Trade Nguyen Hong Dien revealed that the project has already disbursed about 30,000 billion VND, with daily interest payments of about 6-7 billion VND due to an average loan interest rate of 8% per year. In addition, Dong Nai province has lost revenue of 6-6.5 billion VND per day from electricity generation due to the slow progress of the project. This has led to daily losses of about 12-13 billion VND for the plants and additional uncalculated losses affecting the investment environment and power supply for the country.

According to Minister Dien, there are three main bottlenecks that have caused delays in the project: issues related to power purchase agreements, gas supply, and capacity release lines. The only remaining obstacle is a delay in site clearance and land procedures in Dong Nai province that has caused a six-month delay for Nhon Trach 3 and subsequently affected Nhon Trach 4 as well. To resolve these issues and keep the project on track, Minister Dien urged Dong Nai province to expedite issuing a Land Use Rights Certificate to investor PV Power before May so that they can provide a legal basis for construction to continue.

Once operational, Nhon Trach 3 and 4 thermal power plants are expected to contribute approximately nine billion kWh per year to Vietnam’s national electricity system. PV Power is overseeing the project as investor with Samsung C&T Corporation handling construction work alongside Vietnam Machinery Installation Corporation in this joint venture initiative.

In conclusion, if these financial losses continue unchecked it could lead not only financial instability but also affect other businesses operating in Vietnam’s energy sector hence it’s crucial for all parties involved