The prime minister has approved the investment planning of the 1,050MW O Mon II thermal power plant project with the preliminary capital of VND30.56 trillion ($1.33 billion).
The investor of O Mon II thermal power plant (TPP) is a joint venture between Vietnam Trading Engineering Construction JSC (Vietracimex) and Marubeni Corporation from Japan.
The investor is in charge of calculating the accurate investment capital to feature in the feasibility report to ensure the effectiveness and competitiveness of the project.
Electricity of Vietnam (EVN) was assigned to check and evaluate the total investment value of the project in order to ensure a reasonable price in the power purchase agreement between the two parties.
20 per cent of the investment capital, equaling VND6.11 trillion ($265.65 million), of O Mon II TPP will come from the equity of the investor and the remaining 80 per cent, or VND24.45 trillion ($1.06 billion), will be mobilised from commercial loans.
The construction of the project is expected to come into commercial operation in 2024-2025 in order to suit the construction scheme of the Block B Gas Power Project chain.
Previously in October last year, the prime minister agreed with the proposal of the Ministry of Industry and Trade (MoIT) on adjusting the capacity of O Mon II TPP from 750MW as approved by the PM in Decision No.428/QD-TTg dated March 18, 2016, to 1,050 MW ± 10 per cent with operation time in 2022-2023.
The MoIT is assigning the joint venture to invest in the project by the public-private partnership form and ensure the investor has the requisite capacity and experience to satisfy the requirements on quality and efficiency as well as speed up project progress for the timely supply of adequate electricity for the southern region.
O Mon II TPP is one of four TPPs in O Mon power centre, which is a 660MW power station fuelled by petroleum in Can Tho province. The power station also has three proposed gas-burning combined-cycle units totalling 3,150MW, and the petrol-burning units are scheduled to be switched to natural gas, which would ultimately bring the total gas-fired capacity to 3,810MW.