Geleximco proposes takeover of logistics centre and seaport

Geleximco is the investor of the $900 million Thang Long thermal power plant

The Government Office has recently announced the final decision of Deputy Prime Minister Trinh Dinh Dung approving the project to build Cai Mep Ha logistics centre and a general cargo and container seaport in Phu My town in Ba Ria-Vung Tau.

Accordingly, the government assigned the provincial leader to guide Geleximco to complete procedures to build the Cai Mep Ha logistics centre to meet the demand for socioeconomic development of Ba Ria-Vung Tau and the southern key economic region.

Regarding the general cargo and container seaport, Geleximco will discuss co-operation with the previous investor Vung Tau Shipbuilding and Oil Gas Services JSC to develop the project.

The total investment capital for these two projects is estimated at VND16 trillion ($707.9 million).

Geleximco was mentioned numerous times recently when it submitted a proposal to establish Geleximco-HUI, a joint venture with Hong Kong United Co., Ltd., to take over the $2.2 billion Quynh Lap 1 thermal power plant from state-run Vietnam National Coal and Mineral Industries Holding Corporation Limited (Vinacomin).

Besides, the joint venture also wants to replace EVN to implement Quang Trach 2 thermal power plant.

Notably, Geleximco requested authorisation for the joint venture to hold a 75 per cent stake in Quynh Lap 1, leaving the remaining 25 per cent in the hands of Vinacomin. Meanwhile, the joint venture is looking to acquire the entire 100 per cent stake in Quang Trach 2 from state run Electricity of Vietnam (EVN). Geleximco stated that 80 per cent of the investment capital would come from loans from Chinese banks, while only 20 per cent would be covered from equity.

At present, the proposal to take over Quynh Lap 1 is waiting for the government’s approval, while the authorities have yet to issue a comment on Quang Trach 2.

Furthermore, Geleximco is the investor of the $900 million Thang Long thermal power plant located in the northern province of Quang Ninh.

The construction of the Thang Long plant began in October 2014 with 20 per cent of the investment capital from equity, while 80 per cent was from foreign loans guaranteed by the government and China Development Bank and China Export and Credit Insurance Corporation (Sinosure).

The Thang Long thermal power plant is scheduled to be completed in the third quarter of 2018.