Central Vietnam province Quang Tri’s $2 bln energy project in Laos inspected

The $2 billion AMI Savannakhet wind power plant in Laos’ Savannakhet province are among the five projects of the central province of Quang Tri named by the Vietnamese Government Inspectorate in its latest large-scale inspection.

The special inspection covers 898 projects showing signs of delays, legal entanglements, low efficiency, prolonged stagnation, or potential risks of losses and waste.

With a total capacity of 1,220 MW, the AMI Savannakhet wind power plant is developed by AMI Renewables Quang Binh JSC. As of 2023, this is the largest energy project invested in Laos by a Vietnamese company.

Previously, in December 2022, the Lao Ministry of Planning and Investment signed an agreement with AMI Renewables Quang Binh JSC to conduct a feasibility study for the AMI Savannakhet wind power plant in Se Pon district, Savannakhet province.

The first phase of the plant is expected to have a capacity of approximately 252 MW on an area of 2,687 hectares. In January 2023, the project was included in the minutes of the Lao-Vietnam Intergovernmental Committee meeting, where both governments pledged to facilitate its implementation.

Subsequently, the Lao government approved the inclusion of the project in the list of projects that will export electricity from Laos to Vietnam before 2025. In June 2023, the Lao Prime Minister approved and authorized the Lao Ministry of Planning and Investment to sign a project development agreement with AMI Renewables Quang Binh.

According to the timeline, AMI Renewables Quang Binh is expected to complete and submit the final feasibility report by September 2023, sign the concession agreement by the end of 2023, commence construction in Q2/2024, and begin commercial operation in Q4/2025.

Once operational, the project is anticipated to play a key role in economic development, ensuring energy security and contributing to national defense and security along the Vietnam-Laos border in former Quang Binh province (now part of Quang Tri province after a merger).

It also aligns with plans to open and upgrade the Chut Mut (Quang Binh)-La Vin (Savannakhet) border gate, as part of the land border gate planning for 2021-2030, with a vision to 2050.

AMI Renewables Quang Binh JSC was established in 2022 and is headquartered in Dong Hoi ward, Quang Tri province.

As of March 2023, the company had three shareholders: Duong Dinh Tich and Phan Cam Ly, each contributing VND6 billion or $228.9 million (20%), and chairman Nguyen Nam Thang, contributing VND18 billion (60%).

Previously, in September 2020, AMI Renewables Quang Binh JSC started construction on the B&T wind power cluster project with a total capacity of 252 MW and investment of over VND8.11 trillion ($304.9 million). The project began commercial operation in October 2021.

In addition to the above wind power project, four other projects in Quang Tri are also under inspection. They include the VND6.13 trillion ($233.86 million) Quang Tri Airport project, developed by T&T Group and Cienco 4 Group JSC; and the VND4.53 trillion Trieu Phu Multi-sector Industrial Park project, developed by Trung Khoi JSC.

The VND2.2 trillion ($83.96 million) Nam Cau Dai Urban Area project by Son Hai Group; and a VND2 trillion project to build a coastal road connecting the East-West Economic Corridor (phase 1) by the Quang Tri Investment and Construction Project Management Board.