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Tuesday, June 25, 2024

Delays in Nhon Trach thermal power projects risk VND13 billion daily losses

The Saigon Times

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HCMC – The construction of Nhon Trach 3 and 4 thermal power plants in Dong Nai Province is encountering major delays, with the potential daily losses estimated at VND13 billion due to these setbacks.

The plants, which represent Vietnam’s first liquefied natural gas (LNG) thermal power projects, require a combined investment of VND1.4 billion and have a total capacity of 1,624 MW.

According to the initial timeline, Nhon Trach 3 was scheduled to start trial generation by May 2024 and enter commercial operation by November 2024. Meanwhile, Nhon Trach 4 aimed to begin its trial phase in November 2024, with commercial operation starting by May 2025. However, as of April 2024, the projects had been only 85% complete.

The delays, particularly with Nhon Trach 3 plant, have been attributed to issues with land clearance, which have subsequently affected the timeline for Nhon Trach 4 as well.

Recognizing the urgency of the situation, Minister of Industry and Trade Nguyen Hong Dien has called for increased collaboration between the investors and the local government of Dong Nai Province to address and resolve the challenges swiftly.

The continued delays not only impact the local economy but also pose a threat to the stability of Vietnam’s future electricity supply.

According to estimates, each day of delay in the operation of Nhon Trach 3 and 4 power plants will cause damages of around VND13 billion to related parties, including Dong Nai Province.

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