EVNGENCO1 proposes investment in a VND 55 trillion thermal power plant

Expected to begin operations in 2030

INTRODUCTION

EVNGENCO1 (Power Generation Corporation 1) has proposed becoming the investor for the Quang Tri Thermal Power Plant project, with a total investment of VND 55 trillion. This project has been included in the National Power Development Plan for 2021-2030, with a vision to 2050 (Power Plan VIII), but it has yet to secure an official investor. The implementation of this project will not only ensure a stable power supply but also contribute to economic development in the central region.

PROJECT HISTORY AND BACKGROUND

Since 2013, the Government has approved the Thai International Power Company (EGATi) as the investor for the Quang Tri Thermal Power Plant project under the Build-Operate-Transfer (BOT) model. The project was designed with a capacity of 1,200 MW and an estimated total investment of approximately VND 55 trillion. However, in July 2024, the Ministry of Industry and Trade agreed for EGATi to withdraw from the project. This decision left the project without an official investor.

After years of delays, finding a new investor has become a pressing issue. The Quang Tri Thermal Power Plant is considered a crucial project to meet the growing electricity demand of the economy. If the project is not implemented soon, the risk of power shortages in the future will become a serious concern.

Figure 1: EVNGENCO1 delegation working with the Quang Tri Provincial People’s Committee on the investment in the Quang Tri Thermal Power Plant project.

EVNGENCO1’S PROPOSAL

Recognizing the need for a capable entity to take over the project, EVNGENCO1 proactively proposed to the Quang Tri Provincial People’s Committee its willingness to assume the role of the primary investor. According to EVNGENCO1, assigning the project to them aligns with the Electricity Law and the policies of the Ministry of Industry and Trade.

EVNGENCO1, a subsidiary of Vietnam Electricity (EVN), has extensive experience in investing, constructing, and operating large-scale thermal power plants. Some notable projects successfully implemented by EVNGENCO1 include:

Duyen Hai 1 and Duyen Hai 3 Thermal Power Plants
Nghi Son 1 Thermal Power Plant
Hydropower projects such as Dong Nai 3 & 4, Ban Ve, and Song Tranh

With practical experience from previous projects, EVNGENCO1 is confident in its ability to ensure both the progress and quality of the Quang Tri Thermal Power Plant.

Figure 2: Location of Quang Tri Thermal Power Plant

PROPOSED TIMELINE AND COMMITMENT TO IMPLEMENTATION

If approved by the Government and the Ministry of Industry and Trade as the main investor, EVNGENCO1 is committed to implementing the project according to the schedule set out in Power Plan VIII. The key milestones of the project are expected as follows:

Q2 2025: Completion of the procedures to assign EVNGENCO1 as the investor
Q3 2027: Commencement of construction
Q4 2030: Commercial operation of the first two generator units

The corporation also proposed that the Quang Tri Provincial People’s Committee work with the Ministry of Industry and Trade to submit the project for Government approval. If the project is classified as an urgent power infrastructure project, the approval and implementation process can be accelerated.

Figure 3 : Quang Tri Thermal Power Plant

RESPONSE FROM THE QUANG TRI PROVINCIAL PEOPLE’S COMMITTEE

During a meeting with EVNGENCO1, Mr. Ha Sy Dong, Acting Chairman of the Quang Tri Provincial People’s Committee, highly appreciated the corporation’s proposal. He emphasized that the province is willing to support the initiative, but EVNGENCO1 needs to present a more detailed and feasible plan.

The provincial authorities also plan to submit the investment proposal to the Provincial Party Standing Committee and coordinate with relevant agencies to ensure all legal procedures are properly completed. This is a crucial step to keep the project on schedule.

SIGNIFICANCE OF THE PROJECT FOR THE ENERGY SECTOR AND LOCAL ECONOMY

The implementation of the Quang Tri Thermal Power Plant will bring numerous benefits, not only for the power sector but also for the local economy:

Ensuring electricity supply: The plant’s large capacity will significantly enhance the national grid’s power output.
Job creation: During construction and operation, the project will generate thousands of jobs for local workers.
Contribution to the provincial budget: With a total investment of VND 55 trillion, the plant will be a major source of revenue for Quang Tri Province.

Additionally, EVNGENCO1 has pledged to adopt advanced technologies to minimize environmental impacts and ensure compliance with emission standards.

CONCLUSION

With its strong financial capability and extensive experience, EVNGENCO1 is well-positioned to take on the role of the primary investor for the Quang Tri Thermal Power Plant. If approved, the project will not only enhance energy security but also stimulate economic growth in the region.

Close cooperation between EVNGENCO1, the Quang Tri Provincial People’s Committee, and relevant ministries will be key to the successful implementation of the project. Given the increasing demand for electricity, the timely execution of this project is essential.

(Vn-Industry.)

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