Vietnam faces power shortage due to sluggish projects
  • |, Customsnews | July 19, 2019 03:53 PM
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As many as 47 electricity projects are behind schedule which will lead to serious power shortage in the 2021-2025 period according to the Ministry of Industry and Trade.

A sluggish power project in Bac Giang Province

A report released by the Electricity and Renewable Energy Authority at a Wednesday meeting held by the Ministry of Industry and Trade showed that up to 47 among 62 power projects nationwide with a large capacity of over 200 MW are behind schedule.

According to the Electricity and Renewable Energy Authority, power projects are now carried out in three forms of investment including projects invested by state-owned corporations like Vietnam Electricity (EVN), Vietnam Oil and Gas Group (PVN), and Vietnam National Coal and Mineral Industries Holding Corporation Limited (TKV), projects invested in the form of build-operate-transfer (BOT); and projects invested in the form of an independent power projects.

In the total capacity for 2016-2020 (21,651 MW), EVN invested 7,185 MW (accounting for 33.2%) with 23 projects of all kinds; non-EVN power sources were 14,465 MW (accounting for 66.8%). Of the 23 projects invested by EVN, 10 projects were on schedule, and 13 projects were behind schedule or delayed. So far, 8 projects by EVN have completed construction and been put into operation, 4 projects are under construction, and 11 projects are carrying out procedures.

PVN was assigned to be the investor of eight projects with a total capacity of 11,400 MW. There are three projects for 2016-2020 and five projects for 2021-2025. Up to now, all eight projects have faced difficulties and obstacles and it is difficult to complete them on schedule. Currently, PVN is building three projects, but all are two to three years behind schedule; PVN is implementing investment procedures for four projects but they are expected to be behind schedule from 2.5-3.5 years compared to the Adjusted Power Plan VII; and one PVN project has been offered to other investors.

For TKV, the number of projects implemented is four with a total capacity of 2,950 MW. Of which two projects are in the 2016-2020 period, and two projects are in the 2021-2030 period. Currently, all four projects are behind schedule for two years or more.

There are 19 BOT projects, of which only four projects have been put into operation, while 15 others are being constructed.

IPP projects are also not very positive because of the 8 projects with a set capacity of 7,390 MW, only 1 project is on schedule and 2 projects are likely to be on schedule. The remaining projects have not determined the completion time.

Speaking at the meeting, deputy minister of Industry and Trade, Hoang Quoc Vuong said that this situation means that the country faces a serious power shortage in the time to come.

Vuong also pointed out some causes to the sluggish progress of the 47 projects.

"Power projects usually have large scale, mostly over USD2 billion," Vuong said. "The construction time usually lasts long if investors fail to find capable contractors."

The official also mentioned some cumbersome regulations on public projects that have also hindered many power projects from being completed on time.

He asked for cooperation from concerned agencies in order to speed up the construction at on-going projects.

"These projects should be inspected once every three months," he suggested. "We need to know about their problems and help solve them."

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