Tan Tao Investment and Industry Corporation (ITACO) has receivedapproval from the Ministry of Industry and Trade to transfer its hugethermal power project in Kien Giang province from a build-own-operatemodel to a build-operate-transfer project, a move that will help thecompany get the Government to guarantee the project.
By December 31, if the company fails to change the business model, theministry would consider choosing other investors, Kien Giang People'sCommittee Vice Chairman Pham Vu Hong said on the provincial website.
Construction of the 6.7 billion USD Kien Luong plant had been delayedfor years due to ITACO's failure to negotiate power-purchase contractswith Electricity of Vietnam (EVN) and lack of capital, Hong said.
ITACO had once petitioned for a Government guarantee for the project,but failed as the project was being developed under a build-own-operatemodel, he said.
ITACO General Director Nguyen TuanMinh said the company would continue to implement the project aftertransforming its form to a build-operate-transfer model.
Currently, the company is negotiating with partners about theproject's eligibility and its cost as well, he said, adding that whenfinished, the company would submit the plan to the ministry and thenre-negotiate with EVN.
In August 2008, the PrimeMinister approved the three-stage project, which includes a 4,400 -5,200MW thermal power plant and the Nam Du Deep Seaport on An Sonisland, 60km from the plant.
ITACO, a subsidiary of Tan Tao Group, is licensed to invest 6.7 billion USD in the Kien Luong Thermal Power project.
According to the licence granted to ITACO, construction of the firststage of the project, with an output of 1,200MW, is scheduled forcompletion by the end of this year.
ITACO filled 88ha of the site, built an 8km embankment and paid compensation to families who were forced to relocate.
But construction of the project was suspended in August 2010, and nofurther work was undertaken because ITACO failed to seek funds for theproject.
In late April, the provincial People'sCommittee warned that it would halt the project if ITACO failed toarrange capital for investment in the plant before June 30.-VNA