BOT contract for Nam Dinh I Thermal Power Plant Project signed

The BOT contract for the Nam Dinh I Thermal Power Plant Project was signed on November 12. Photo: MoIT

The project is invested in by South Korea's TKG Taekwang Group with a designed capacity of 1,200 MW, consisting of two units, each with a capacity of 600 MW. It received its investment registration certificate in 2017. The investor is committed to bringing the plant into commercial operation by 2030.

The signing of the build-operate-transfer (BOT) contract marks a transition from the lengthy preparation and negotiation phase to the implementation phase of subsequent investment procedures and work. This also provides a basis for the parties to finalise key agreements, aiming to add a large-scale power source to the system amidst the continuing increase in electricity demand in the North.

Nguyen Duc Cuong, director of the Department of Electricity under the Ministry of Industry and Trade (MoIT), said that during the preparation for signing, the MoIT coordinated with relevant agencies to review the documents, agree on the principle of applying transitional provisions, and did not renegotiate the contents that the parties agreed upon and legally signed. This approach provides a legal basis for the continued implementation of the project.

The investor specifically committed in writing to reduce the project's emissions to a level equivalent to liquefied natural gas-fired power projects and to bear all related incurred costs.

According to the Department of Electricity, the main legal, technical, and commercial conditions were basically completed before the signing; key contracts were ready to be signed, creating a foundation for the implementation of related contracts.

Deputy Minister of Industry and Trade Truong Thanh Hoai said that the project was significant to ensuring electricity supply to the north. During 2027-2031, electricity demand will continue to increase while supplementing power sources remains challenging. The North is both a major load centre and a hub for industrial facilities supporting economic growth.

Resolution No.70-NQ/TW 2025 identifies ensuring national energy security as a prerequisite for achieving double-digit growth targets. According to the revised Power Development Plan 8, by 2030, the domestic power generation capacity will reach 180,000 to 230,000 MW, of which coal-fired power will account for approximately 31,000 MW, continuing to play a key role in the energy transition process.

The project continues to be identified as a power generation component in the system structure. However, to achieve the 2030 operational target, the investor needs to quickly finalise capital arrangements, fulfil guarantee obligations, complete investment and construction procedures, and prepare human resources, equipment, and construction plans.

Regarding fuel, Vietnam Coal and Mineral Industry Group is requested to coordinate with the investor to review the implementation of coal supply contracts, prepare supply sources and transportation and reception plans, ensuring the quantity and quality for operation.

Vietnam Electricity needs to sign power purchase agreements soon and coordinate to ensure the progress of grid connection and power evacuation.

Investors in $2.2 billion Quynh Lap LNG project assigned urgent missions Nghe An People's Committee requires the consortium of investors of the Quynh Lap LNG thermal power plant to complete certain urgent missions in September to accelerate the project.

Government urges action on stalled Mekong Delta power projects The government has asked ministries and agencies to resolve hurdles to the Song Hau 2 and O Mon 2 and 3 thermal power projects by the end of September.

Land clearance contract for new thermal power plant to be signed Nghe An People's Committee require the consortium of investors in the Quynh Lap LNG thermal power plant to sign the land clearance contract with the local authorities before September 25.

Long-delayed LNG power projects may be replaced in revised PDP VIII The Ministry of Industry and Trade is consulting ministries and localities for the adjustment of Power Development Plan VIII - Phase 1. One of the contents is the proposal to replace coal-fired or gas-fired power plants with LNG power projects in the north.

$2.28 billion Ca Na power project clears feasibility hurdle The feasibility study for the Ca Na gas-fired thermal power plant project is eligible to be submitted for approval, according to the notice of Khanh Hoa Department of Industry and Trade on November 2.

Vietnam and Japan exchange key cooperation documents worth over $272 million Alongside General Secretary and State President To Lam and Japanese Prime Minister Takaichi Sanae, Vietnamese Minister of Finance Ngo Van Tuan, Japanese Ambassador to Vietnam Ito Naoki, and Japan International Cooperation Agency President Tanaka Akihiko exchanged cooperation documents in Tokyo on November 9.