PM inaugurates $2 bln thermal power plant, lauds national capabilities

By Bach Quang
Sun, July 17, 2022 | 11:00 am GMT+7

The Song Hau 1 thermal power plant highlights Vietnamese firms’ ability to handle large-scale projects on their own, Prime Minister Pham Minh Chinh said at its inauguration Friday.

The two-turbine 1,200 MW plant, located in Chau Thanh district, Hau Giang province, the Mekong Delta, is part of the Song Hau power complex. It is a key project under the country's power development plan VII.

Petrovietnam is its investor, while Lilama, one of Vietnam's leading construction companies, was the engineering, procurement and construction (EPC) contractor.

Construction of the plant, capitalized at more than VND43,000 billion (about $2 billion), had begun in May 2015. It began commercial operations in May this year, supplying the national grid with 7.3 billion kWh per year.

Song Hau 1 serves as an important premise for the execution of other power projects by Petrovietnam in the future, the government said on its portal. "It also marks the outstanding success of Vietnamese companies in the execution of such a large-scale project."

Prime Minister Pham Minh Chinh noted the event was significant in the context of the challenges faced by the project, including pandemic fallout, legal disputes and production cost problems.

"It will contribute to the country’s energy security, and boost the economic growth and economic restructuring of Vietnam and Hau Giang province towards industrialisation,” he added.

PM Pham Minh Chinh speaks at the inauguration ceremony of the Song Hau 1 thermal power plant in Hau Giang, southern Vietnam on July 17, 2022. Photo courtesy of the province.

PM Pham Minh Chinh speaks at the inauguration ceremony of the Song Hau 1 thermal power plant in Hau Giang, southern Vietnam on July 17, 2022. Photo courtesy of the province.

Petrovietnam has saved VND500 billion ($21.32 million) in developing this project compared to the approved investment capital. The plant's annual revenue is estimated at VND15-20,000 billion ($853 million).

"The execution of the project shows that we are increasingly confident about handing over such big projects to Vietnamese corporations, showcasing high responsibility, high determination and intense efforts," the PM said.

The current design capacity of Petrovietnam invested power plants is 5,405 MW, accounting for 7% of Vietnam's total. The state-run group accounts for about 10% of the country’s power output, becoming the second largest producer in the country, government data shows.

An aerial view of the Song Hau 1 thermal power plant in Hau Giang province, southern Vietnam. Photo courtesy of Lilama, its EPC contractor.

An aerial view of the Song Hau 1 thermal power plant in Hau Giang province, southern Vietnam. Photo courtesy of Lilama, its EPC contractor.

At an investment forum held Saturday with the participation of PM Pham Minh Chinh, Hau Giang authorities handed over 12 investment certificates to projects worth VND19,000 billion ($810 million). The PM also witnessed the signing of eight memoranda of understanding (MoU).

Hau Giang called for private investment in 87 projects worth VND48,175 billion ($2.05 billion), including nine related to industrial parks, seven related to industrial clusters, 21 agricultural projects, 31 urban area projects, and eight tourism projects.

Hau Giang province, traditionally known as an agricultural production center, is emerging as an investment hub in Mekong Delta, attracting big Vietnamese names like Masan, Vingroup, Minh Phu, and Tan Hiep Phat.

The province will soon welcome three expressways, namely Can Tho-Ca Mau, Chau Doc-Can Tho-Soc Trang, and Ha Tien-Rach Gia-Bac Lieu. A maritime route connecting Hau Giang and Tran De ports will also facilitate transfer of goods from local industrial parks and urban areas.

Hau Giang is one 12 provinces in Mekong Delta, which also includes Can Tho city, one of Vietnam's five centrally-managed cities, together with Hanoi, Hai Phong, Danang, and Ho Chi Minh City.

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