Burnt power generator energises new plan

June 25, 2013 | 09:17

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Hiep Phuoc Power Company, forced to close a Ho Chi Minh City power plant two years ago due to losses, is hunting for support for a new $600 million power plant.

Hiep Phuoc Power Company

Pham Hong Tien, head of operations at Hiep Phuoc Power Company – a subsidiary of Taiwan’s CT&D Group, last week revealed to VIR that the investor had just submited a gas-fired power plant proposal to the Ministry of Industry and Trade for approval. The 780 megawatt project would be invested under the build-operate-transfer (BOT) form.

The plan is a surpise to some as Hiep Phuoc’s first power venture in Vietnam did not have happy ending. Its 375MW, gas-fired power plant in Hiep Phuoc Industrial Park in Ho Chi Minh City, licenced in 1993, supplied electricity to manufacturers in the park and Tan Thuan Export Processing Zone and several other office and residential areas in Ho Chi Minh City. However, the investor had to shut down the plant in 2011 due to high fuel costs that made it suffer losses.

Tien said Hiep Phuoc was now discussing with state-owned Electricity of Vietnam (EVN) for supply to national transmission grid. He said the power investor planned to sell electricity to EVN instead of selling directly to customers like the first plant.

“In the past we suffered losses because we directly sold electricity to customers, while the price is limited by the government,” said Tien, adding that the power purchase agreement the company planned to sign with EVN would help it avoid losses.

The new plant will be located on 20 hectares that Hiep Phuoc Power Company already occupied in the park with minimal site preparation needed. Tien said the plant would use liquefied gas from overseas.

It has also signed a memorandum of understanding with PetroVietnam Gas Corporation (PV Gas), under which PV Gas would supply the power plant with about 600 million cubic metres of liquefied gas per year.

By By Linh Thu

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