After the Prime Minister approved the investment policy of O Mon 2 Thermal Power Plant – a component project (downstream stage) in the Block B – O Mon project chain, an expert from Vietnam Energy Magazine contacted with stakeholders and received a lot of enthusiasm and responsibility.

Considering the appraisal report of the Ministry of Planning and Investment (based on the comments of relevant ministries and branches) … The Prime Minister has just approved the investment policy of O Mon Thermal Power Plant project. 2 (at O Mon Power Center, Phuoc Thoi Ward, O Mon District, Can Tho City). This project is invested by the Joint Stock Company of Construction Trading Corporation (Vietnam) and Marubeni Group (Japan).

Accordingly, the content of the Decision approving the investment policy of O Mon 2 Thermal Power Plant project has the following main contents:

1 / Project objective: Invest in building a thermal power plant to meet the demand for electricity supply to the regional power grid and the national power system. Attract domestic and foreign investment capital to build power source projects, contribute to socio-economic development of Can Tho city and surrounding areas.

2 / Project scale: Design capacity of 1,050MW ± 10% and synchronous systems with the unit.

3 / Total investment (preliminary): 30,560 billion VND, equivalent to 1.31 billion USD. Investors are responsible for reducing, optimizing and accurately reducing the total investment in the feasibility study report stage, ensuring the efficiency and competitiveness of the project, especially in terms of electricity prices compared to other power plants in Block B gas-power project chain.

4 / Capital source: 20% equity (equivalent to 6,112 billion VND) and 80% of commercial loan (equivalent to 24,448 billion VND).

5 / Implementation schedule: Completion of investment and officially put into commercial operation in 2024 – 2025, ensuring compliance with the general progress of Block B gas – electricity project chain.

6 / Applied technology: Combined cycle gas turbine technology …

Regarding the implementation organization, the Government assigned the People’s Committee of Can Tho city to base on the Prime Minister’s written decision on investment policy, to direct the investment registration agency to grant an investment registration certificate. investors in accordance with regulations. Closely coordinate with investors in the process of project implementation. Check and supervise the implementation of the project in accordance with the law, the direction of the Prime Minister and the appraisal opinions of the concerned ministries and branches (including the inspection and supervision). closely follow the investor’s capital mobilization according to the project implementation schedule).

On the other hand, direct relevant agencies to guide investors to implement tax incentives and related policies in accordance with the law; coordinate to promptly solve difficulties and problems in the process of project organization and implementation.

For investors: The Government assigns responsibility for information and data reported in the project file, investment efficiency of the project in accordance with law. To receive appraisal opinions of the Ministry of Planning and Investment and relevant agencies in the Appraisal Report; organize the implementation of the construction investment feasibility study report of the project. In particular, it is necessary to continue research to correct the scale, configuration and main technical parameters; reduce, optimize and accurately determine the total project investment in accordance with the law, increase the competitiveness of the project, especially in terms of electricity price compared to other power plant projects in the Gas Project Chain – Lot B electricity; clarifying the feasibility of investment capital sources, investment efficiency of the project in accordance with current regulations, ensuring feasibility, competition and efficiency.

At the same time, to research and implement solutions to accelerate the project’s steps to ensure the progress is approved, report to competent authorities to consider issues beyond authority.

The Prime Minister assigned the Ministry of Industry and Trade to take responsibility for the direction of the investor to implement the project in the process of appraisal of the project investment policy dossier, ensuring the capacity, experience, and compliance with regulations as directed. of the Prime Minister in Document No. 1200 / TTg-CN dated September 25, 2019. Directing and guiding investors to implement the next steps of the project in accordance with regulations, especially the contents. in terms of electricity price, plant investment and operation, ensuring competitive electricity prices, synchronizing the overall progress and efficiency of Block B gas – electricity project chain.

Especially, directing and guiding Electricity of Vietnam (EVN) to negotiate specific electricity prices of projects with investors in accordance with regulations.

Along with that is to direct and guide Vietnam Oil and Gas Group (PVN) to negotiate gas sale and purchase contracts of the project with investors in accordance with regulations, ensuring the consumption of Block B gas output. according to the commitments and guarantees of the Government.

In addition, the Government assigned the Ministry of Industry and Trade to be responsible for monitoring the project implementation progress, ensuring compliance with the overall progress of the Block B gas – power project chain.

Comments of related parties

O Mon 2 Thermal Power Project is a component project (downstream stage) in the Block B – O Mon project chain, in which the Government, ministries, branches and stakeholders will still need to do their best to balance resources. technical design and finalization, negotiation and contract commitment processes. After the Prime Minister approved the investment policy for this project, we contacted related parties and received the following comments:

The executive leader of Phu Quoc Petroleum Operating Company (Phu Quoc POC) said that: This decision will contribute to solving the long-standing bottlenecks and bottlenecks in the project chain. Accordingly, on the upstream side, the operator of Phu Quoc POC will coordinate with partners and stakeholders in the project chain to accelerate trade negotiations for early investment decisions (FID). 

The leader of PetroVietnam Exploration and Production Corporation – PVEP (the partner in the product distribution contract of the Phu Quoc POC Joint Venture) emphasized: Prime Minister’s approval will be one of the key contributors. the opening part of the chain of projects that Vietnam Oil and Gas Group – PVN, PVEP and partners from Japan and Thailand (upstream stage) have invested a lot of time and resources.

As for Marubeni, we will comply with the Prime Minister’s decision (through the Office of the Government) and work closely with ministries and stakeholders to take the next steps to develop the project. such as a feasibility study (FS), discussing project documents including negotiations on gas sales contracts (GSA) and power purchase contracts (PPAs).

We will coordinate with stakeholders to realize the O Mon 2 Thermal Power project synchronously with component projects in the Block B project chain to supply electricity and contribute to the economic development – commune. Can Tho City Association in particular and surrounding areas in general.