Tan Tao Group seeks BOT power plant partners

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The firm (TEC), a subsidiary of Tan Tao Group, is seeking partners after it has been allowed to convert the investment form of Kien Luong 1 thermal power plant project from build-own-operate (BOO) into build-operate-transfer (BOT) after a two year delay due to financing trouble.

An executive of Tan Tao Group who declined to be named said that the firm wanted to partner with “a strong consortium”.

“They may hold the majority stake to carry out the project. Our aim is to complete the project on time as per our promise,” the source told VIR.

On its website the group states that bidders to submit proposals demonstrating an interest will have to prove capability, experience in investment and construction of thermal power plants, financing arrangements, proven experience in operating thermal power plants, and provide added value to the project.

Bidders will be audited by TEC based on a thorough evaluation of their proposals. Shortlisted parties will participate in a limited bidding process for the engineering, procurement and construction (EPC) contract or will become a nominated EPC contractor.

Leading French energy company EDF, and Korea’s Samsung and Hyundai groups have expressed interest in the project. Previously, the Kien Luong thermal power project was also considered by UK investor Graham Bell & Associates Limited.

Under the government’s electricity master plan for 2020, Kien Luong thermoelectricity centre would start commercial operations in 2018.

The Tan Tao Group was approved as the investor in Kien Luong electricity plant in 2008. The site for the plant is located in Kien Giang province, approximately 300 km south of Ho Chi Minh City. The project, once completed, would make it one of the largest power generation plants in Vietnam with a total capacity of 4,400-5,200 MW. The power plant, which would also include a deep seaport Nam Du, would cost an estimated $7 billion under the old plan.

Tan Tao’s executives previously explained that the firm was stalling the construction because it had not yet received a government guarantee and undertaking agreement (GGU). According to Tan Tao, without the GGU, the project would be deadlocked as the investor would not be able to arrange funding from financial institutions.