Quang Ninh discloses criteria for $2 billion LNG power project

Quang Ninh has set some strict criteria for its LNG power project

Quang Ninh Department of Planning and Investment issued the selection criteria for the investor of the LNG project. Notably, the investor will need to have a minimum equity of no less than 15 per cent of the project’s total investment value ($300 million at the current valuation of the project). In case the investor is a joint venture, the joint venture’s equity must be equal to the total equity of the investors joining the consortium.

If any member of the consortium fails to comply, the joint venture will be assessed as not meeting the equity requirement. The leading investor in the consortium must have a minimum capital ownership ratio of at least 30 per cent and the remaining members must have a minimum equity ratio of 15 per cent each in the consortium.

There are several other strict requirements for investors. Notably, the investor must commit to not require guarantees on power purchase agreement (PPA) and to negotiate a PPA with Electricity of Vietnam.

Besides, the investors have to commit to putting the project into operation by the third quarter of 2027. In case they miss the deadline, the project will be revoked without compensation, except where the law prescribes it.

Quang Ninh asked interested investors to commit to not buy, sell, or transfer the project in any form until the plant is put into operation and receives its commercial operation certificate (COD). In case of violation, the project will be revoked without compensation.

Businesses are also required to establish a local business, show proof of fulfilled tax obligations, commit to complying with regulations on security and national defence, among others.

The investors are also required to apply advanced and modern technologyand comply with the project's technical requirements set by Vietnamese technical standards and regulations. In case the current Vietnamese standards are not available, they will have to apply the most widely applied international standards.

The deadline for investors to submit their project implementation registration document is July 29.