Mekong Utility Watch

Egat delays power purchase, $230 million power plant to be fast tracked

Vietnam Investment Review
May 25, 1998

Energy shortages have forced the Government to fast-track the construction of $230 million 259MW Se San 3 Hydropower project in the south of the country.

The Government recently urged the Ministry of Industry to complete the feasibility study of the Se San hydro-electric project for appraisal and approval sending an official letter authorising the Vietnam Electricity Corporation (EVN), in accordance with the Hanoi Power Works Company, to commence development.

According to the Ministry, the Se San 3 Hydropower project is included in the “Power Development Strategy to 2005” recently approved by the Government.

Director of the Hanoi Power Works Company, Cao Van Son, said the company would be looking for financial partners willing to lend money at favourable interest rates ine xchange for a stake in the operation of the plant.

Analysts told the Vietnam Investment Review that construction of the plant had the advantage of being only 25 kilometres downstream from the Yaly hydro-power plant.

The decision to appoit the Hannoi Power Works Company to act as developer is part of the Government’s scheme to gradually transfer the construction of the power plants from the monopoly of EVN.

For the same reasons, the Na Duong and Can Don power plants were in the past delegated to the local Song Da Construction Corporation for construction and operation.

More recently, some other power projects developed by foreign investors under the form of BOT have been carried out in an effort to diversify the ownership of power plants in Vietnam.

Categories: Mekong Utility Watch

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