Investors can join the bidding for construction of power plant projects under BOT (build, operate, transfer) and PPP (public-private partnership) forms, Pham Hung, deputy head of the Energy Department, said at a discussion of the Asian Development Bank’s (ADB) 44th Annual Meeting in Hanoi on Tuesday.
Addressing the meeting, Deputy Prime Minister Hoang Trung Hai said electricity shortage has become critical in Vietnam, although power plant investment accounts for over 10% of the overall investment in the economy.
The ministry expects the power source growth rate of Vietnam at 14-16% between 2011 and 2015 and 11.3-11.6% during the 2016-2020 period. To meet the targets, Vietnam needs to build power plants with the combined output of 50,000MW from now to 2020.
The Government has provided supporting polices for Electricity of Vietnam (EVN) to enhance its role as the only electricity provider and incentives for investors to construct independent power plants in the country.
The ministry is preparing bidding invitation procedures to carry out 11 power plant projects under BOT form, of which eight projects already have investors and the ministry will look for investors for the other three, Hung said.
Those include Mong Duong 2 coal-fired thermal power plant, which is expected to start work in July and begin electricity generation in 2014. Meanwhile, the Ministry of Planning and Investment is evaluating Hai Duong coal-fired thermal power plant project to decide whether to grant an investment license for investors.
Besides that, the ministry is seeking international investors for Nghi Son 2 project in Thanh Hoa Province. Bidding invitation procedures for O Mon 2 project in Can Tho City and Vung Ang 2 project in Ha Tinh Province are expected to be released in 2012.
The ministry is also making a list of power plants to be developed under PPP form, including coal-fired Song Hau 1 thermal power plant in Hau Giang Province, Quang Tri project and Quynh Lap project in Nghe An Province.
“The PPP method creates an opportunity for investors to join power plant projects in Vietnam,” Hung said.
Vietnam, over the past four months, has suffered a 10% power shortage, or over one billion kilowatt hours. The figure was much lower than the expected figure of three billion kilowatts due to power price hikes in March and the Government’s energy-saving campaign.