Financial Losses Plague Nhon Trach Thermal Power Plants due to Schedule Delays

The Nhon Trach 3 and 4 thermal power plants, located in the southern province of Dong Nai, are facing significant financial losses due to schedule delays. This was revealed during a meeting on the progress of the project on May 9. The project, which uses liquefied natural gas (LNG) for the first time in Vietnam, has a capacity of 1,624 MW and an investment capital of 1.4 billion USD. It is part of the national energy plan until 2030 approved by the Prime Minister in 2019.

Despite timelines that had set Nhon Trach 3 to generate test electricity in May and begin commercial operation in November, and Nhon Trach 4 to start operating in May 2025, only about 85% progress has been made overall. Minister of Industry and Trade Nguyen Hong Dien highlighted that the project has disbursed around 30,000 billion VND, resulting in daily losses of approximately 12-13 billion VND.

The project has encountered three main bottlenecks: issues surrounding power purchase agreements, gas supply lines, and capacity release lines have now been resolved. However, challenges related to premises and land procedures in Dong Nai remain unresolved and are causing delays in the project timeline. Minister Dien emphasized the importance of addressing these issues to avoid further delays and potential risks to the project.

The People’s Committee of Dong Nai province and other relevant parties were urged to provide continued support to facilitate the project’s progress. Once completed, these thermal power projects will add approximately 9 billion kWh to the national electricity system per year. Samsung C&T Corporation is a joint venture general contractor for this project along with Vietnam Machinery Installation Corporation (Lilama). Efforts are being made to expedite completion so that these plants can be operational as soon as possible.

In conclusion, despite significant financial losses due to schedule delays at both thermal power plants, efforts are being made by PetroVietnam Power Corporation (PV Power), as well as Samsung C&T Corporation and Lilama as joint venture general contractors