The plant is co-invested by Malaysia’s Jaks Resources Bhd and China Power Engineering Consulting Group Co., Ltd. (CPECC) and in a build-operate-transfer (BOT) model.
According to a representative of the Ministry of Industry and Trade (MoIT), as regulated by the BOT contract, the construction must be completed within four years, otherwise, a fine will be imposed on the investors.
The Hai Duong plant will be constructed by Southwest Electric Power Design Institute Co., Ltd. and China Power Engineering Consulting Group International Engineering Co., Ltd.
In September 2011, Jaks Resources held the ground-breaking ceremony of the plant, however, the construction works have yet to be implemented. Even, in early 2014, suspicions arose regarding the Malaysian investor’s financial capacity to carry out the project.
In July 2015, Jaks Resources announced its co-operation deal with CPECC to implement the project. Accordingly, their equity will make up 25 per cent of the total investment capital, while the remaining 75 per cent is covered by loans.
According to Jaks Resources’ chairman Tan Sri Datuk Husun Bin Haji Ismail, CPECC has the necessary financial potential and extensive experience in constructing thermal power plants, thus the co-operation will massively accelerate the project’s construction.
In a similar development, on January 19, the MoIT’s General Directorate of Energy and a consortium of investors including Taekwang Power and Aowa Power signed the investment agreement for Nam Dinh 1 BOT thermal power plant, in Hanoi. The investors are finalising procedures for an investment certificate. The $2 billion plant with a total capacity of 1,200MW is expected to be operational by 2020.
To date, the MoIT has managed over 20 large-scale BOT thermal power projects across the nation, adding a total generation capacity of 4,200MW to the national grid. Among these, Phu My 2.2 and Phu My 3 plants in the southern province of Ba Ria-Vung Tau and the first phase of Mong Duong 2 plant in the northern province of Quang Ninh are operational.