Vinacomin’s power plan goes into overdrive

Vinacomin’s power plan goes into overdrive

State-run Vinacomin is expected to drastically increase its power generation capability in the coming year, by focusing on a string of key projects.

State-run group Vinacomin expects to greatly increase its energy generation capability in the near future Photo: Le Toan

Vinacomin, the country’s third largest power investor, said the group would accelerate the development of its power plants including the 1,200 MW Quynh Lap I power plant, the 154 MW Dong Nai 5 hydropower plant and 100 MW Na Duong thermal power plant this year.

Le Minh Chuan, general director of Vinacomin said the group’s under-construction Nong Son thermal power plant was on the right track and expected to begin production in the second quarter of 2014. This month, the group signed a site clearance contract for the Vinh Tan 1 thermal power plant after signing a build-operate-transfer (BOT) contract in late 2013.

Besides the development of power plants in 2014, the group also planned to focus on other key projects. For example, the Nhan Co Aluminium project, one of two large-scale bauxite projects approved by the prime minister in November 2007, is scheduled to come online in the third quarter of 2014 in the Central Highlands province of Dak Nong.

Construction began on the project in early 2010, and it is expected to be capable of producing 1,200 tonnes of aluminium per year by 2016.

Similarly, Vietnam’s first ammonium nitrate project in the northern province of Thai Binh, which cost Vinacomin $276 million, is expected to run testing in 2014 and produce 8,000 tonnes of ammonium nitrate per year. Vinacomin reported that after testing in 2014, the plant is scheduled to run commercially by January 2015.

In addition, Chuan said that the group had planned a series of measures to accelerate coal exploitation and improve the quality and efficiency of its operations. Vinacomin aims to mine 35 million tonnes of coal, with 27 million tonnes to be used domestically and the remainder exported.

However, he shared that, “rising coal demands combined with sluggish investment and high input costs pose challenges for the group.”

Vinacomin mined 42.6 million tonnes of coal in 2013, down four per cent, against the previous year. It sold 39.1 million tonnes, of which 27.1 million tonnes was for domestic use.

Deputy Prime Minister Hoang Trung Hai urged Vinacomin to strengthen management and improve its performance to meet the country’s coal demand. Vietnam, a net coal exporter, has to import nearly six million tonnes of the power-generating fuel by 2015 to meet the domestic demand.

By Phuong Thu

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