Van Phong power station

{{#badges:CoalSwarm|Navbar-Vietnamcoal}}Vân Phong power station is a 2,640-megawatt (MW) coal plant under development in Khánh Hòa province, Vietnam.

Location

The map below shows the location where the plant would be built, in Ninh Phước commune, Ninh Hòa township, Khánh Hòa province.

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Background

Vân Phong-1

In January 2011, the Van Phong Economic Zone Management Authority approved a plan by the Sumitomo Corporation to build the two-unit, $2 billion, 1,320-MW, coal-fired Vân Phong-1, as part of a port-industrial complex being planned in Vân Phong Bay. In November 2012, with only site clearing completed, the Vietnamese government urged Sumitomo to line up investors by June 2013 or risk having the project ceded to other investors.

In August 2013, Sumitomo contracted Finnish company Pöyry to build the plant. As of November 2013, however, Sumitomo was still having trouble with negotiations with the Vietnamese government; the current plan is for construction to begin in April 2015, and for the plant to go online in 2019. However, this timeline involved Sumitomo signing a BOT contract in early 2014, and getting the final license in July 2014; as of November 2014, though, the BOT contract had not yet been finalized.

As of April 2016, Sumitomo was having trouble with compensation, and some families were still living on the project's site. In July 2016, Sumitomo negotiated the location of a transmission line with provincial officials. In August 2016, the provincial premier met with the Ministry of Industry & Trade to push for the acceleration of the project. At the time, the schedule called for construction by the end of 2017, and completion in 2021.

In a March 2017 meeting with provincial officials, Sumitomo said its schedule was to apply for investment certificates by the end of June, and to begin construction by the end of the year.

In May 2017, Sumitomo signed and investment agreement with the Ministry of Industry and Trade, and December 2017 the company received an investment certificate to development the plant. Work will start in 2018.

In March 2018, the environmental impact assessment was approved.

In June 2019 the completion date for Unit 1 was delayed to 2023 and the completion date for Unit 2 was delayed to 2024 in the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7).

In August 2019 Sumitomo announced that construction of Vân Phong-1 had begun.

Sumitomo's Coal Policy

In August 2019 a group of Japanese NGO's including JACSES, Kiko-Network, FOE Japan, Mekong Watch and 350 Japan released a statement calling on Sumitomo to withdraw from Vân Phong-1 because the project conflicts with Sumitomo's policies on coal plant construction. Sumitomo had stated a general policy of not developing new coal-fired plants in its "Integrated Report 2019," but also stated that it might support individual projects on a case-by-case basis.

Financing

In August 2018 a report by Market Forces found that Vân Phong-1 may not be eligible for financing from the Japanese banks SMBC, MUFG, and Mizuho because of their policies that rule out financing supercritical coal plants. In April 2019 the Japanese Bank For International Cooperation (JBIC) agreed to loan up to approximately USD 1.199 million to Van Phong Power Company Limited (VAN PHONG) for Van Phong-1. The loan is co-financed with Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, Oversea-Chinese Banking Corporation Limited and DBS Bank Ltd., and the Bank of China, with a total co-financing amount of approximately USD 1.998 million.

Vân Phong-2

In October 2014, Korean company Keangnam Enterprises and Vietnamese company Hanoi Industrial Construction and Investment JSC signed an initial agreement with Khanh Hoa provincial government to build the additional two-unit, 1,320-MW coal-fired Vân Phong-2 power plant. The next step for the potential developers was to undertake a feasibility study. Construction was scheduled to begin in 2017, and completion for 2020.

Revised Power Development Plan VII

According to PDP7, phase I of the project is scheduled for completion in 2022 and 2023. Phase II of the project is cancelled.

Project Details

• Sponsor: Sumitomo Corporation (Vân Phong-1); Keangnam Enterprises and Hanoi Industrial Construction and Investment JSC (Vân Phong-2)
• Parent company:
• Location: Ninh Phước commune, Ninh Hòa township, Khánh Hòa province, Vietnam
• Coordinates: 12.47704, 109.29244 (exact)
• Status: Construction (Vân Phong-1); Cancelled (Vân Phong-2)
• Gross Capacity: Vân Phong-1: 2 x 660 MW; Vân Phong-2: 2 x 660 MW
• Type: Supercritical (Vân Phong-1)
• Projected in service: Vân Phong-1 Unit 1: 2023; Vân Phong-1 Unit 2: 2024
• Coal Type: Bituminous
• Coal Source:
• Source of financing: Vân Phong-1: Japan Bank for International Cooperation (US$1.5-US$1.8 billion) , and also Sumitomo Mitsui Financial Group (SMFG), Mizuho Financial Group (Mizuho), Mitsubishi UFJ Financial Group (MUFG), DBS Bank, OCBC Bank, Bank of China

Articles and resources

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