New Plan for Quang Tri Thermal Power Project

The announcement by the investor to terminate the Quang Tri Thermal Power Project has forced Quang Tri province to quickly find a replacement investor so as not to waste the budget spent on investing in the resettlement area serving this project.

The Quang Tri Thermal Power Plant Project was approved by the Prime Minister in the National Power Development Plan for the 2011-2020 period with a vision to 2030 in Decision No. 1208/QD-TTg dated July 21, 2011 (Power Plan VII).

In August 2013, the Prime Minister approved the project for the Thai Electricity International Company (EGATi) to be the investor and implemented under the BOT form, with a total investment of over VND55,000 billion (over USD2.2 billion). The project's capacity is up to 1,320 MW, including 2 units, each unit has a capacity of 660 MW.

According to calculations, after coming into operation, the factory will generate 7,200 billion kWh of electricity per year.

According to the Department of Industry and Trade of Quang Tri, after signing the Memorandum of Understanding with the People's Committee of Quang Tri province (July 11, 2014), EGATi has made many efforts and actively coordinated with the People's Committee of Quang Tri province and related ministries, branches and units to implement the Project.

However, on May 31, 2023, EGATi sent a document to the Ministry of Industry and Trade officially informing them that it would not continue to implement this project, due to difficulties in arranging capital and the commitment of the two governments to net zero emissions by 2050.

Quang Tri Department of Industry and Trade said that the Management Board of Land Fund Development Project and Industrial Cluster (Hai Lang District People's Committee) is completing the settlement documents of VND 215.7 billion for the construction project of the resettlement area and the road to the resettlement area of Hai Khe commune (phase I).

Basically, the Hai Khe Commune Resettlement Area has basically completed many construction items; schools, health stations, commune headquarters, and community centers have all been relocated to the resettlement area. However, in reality, people in the project planning area have not been able to move to the resettlement area when the project was suddenly stopped.

It is known that in the Memorandum of Understanding on coordination in implementing the Quang Tri Thermal Power Plant Project between the People's Committee of Quang Tri province and EGATi (signed on July 11, 2014), EGATi will be responsible for the costs of compensation for site clearance, bomb and mine clearance, site clearance, and resettlement.

However, in the Minutes of Agreement to terminate the project on September 29, 2023 between EGATi and the Department of Electricity and Renewable Energy (representing the Ministry of Industry and Trade), there is the content: "The parties agree to exempt each other from all obligations and legal responsibilities related to this Minutes. According to current laws and according to this Minutes of Agreement, regardless of any arising before or after the signing date, there will be no remedial measures and damages incurred by the parties or either of the two parties that signed the agreement". Therefore, the relocation of households to new residences after the completion of the resettlement area (expected to be funded by EGATi) had to stop because there was no longer a basis for implementation.

Mr. Nguyen Truong Khoa, Director of the Department of Industry and Trade of Quang Tri, said that the Department has requested the Provincial People's Committee to consider and organize a working session with relevant departments and branches to advise the Provincial People's Committee to consider and reach an agreement before organizing the signing of the above-mentioned termination agreement to terminate the project development with EGATi.

“On that basis, the province will report to the Prime Minister and the Ministry of Industry and Trade on the project implementation status, the work that the province and the investor have arranged investment funds for, to propose to the Prime Minister and the Ministry of Industry and Trade to convert the Quang Tri Thermal Power Plant Project from coal fuel to using LNG gas fuel to promote the capital sources that have been arranged to invest in the resettlement area…”, Mr. Khoa informed.

Besides, Quang Tri Economic Zone Management Board is also actively looking for new investors to implement Quang Tri Thermal Power Plant Project.

“Recently, a large Korean investor in a joint venture with a large domestic investor proposed to continue implementing the Quang Tri Thermal Power Plant Project on the condition that the Government approves the adjustment of the Project from coal-fired thermal power to gas-fired power. The investor has also submitted a document proposing the project to the Prime Minister,” said Mr. Pham Ngoc Minh, Head of the Quang Tri Economic Zone Management Board.

Source