The construction site. Photo: dongnai.gov.vn

According to Thai Thanh Phong, deputy director of Dong Nai Department of Industry and Trade, the Ministry of Industry and Trade has yet to issue the power price framework that will be applied to the liquefied natural gas projects.

“The capital mobilisation also faces barriers because these projects are not guaranteed by the government for loans and the long-term contracts have yet to be committed into the power purchase contract,” Phong said.

“At Nhon Trach 3 thermal power plant, the initial electrical connection plan has to be adjusted due to obstacles in land clearance. The adjusted plan has to wait for approval to be added into the national power master plan,” he said.

The Nhon Trach 3 and 4 power plants are set to be built in Ong Keo Industrial Park in the southern province of Dong Nai. With its favourable location and the solid infrastructure of the Southern Key Economic Zone, Dong Nai has become the focus of attention for property developers in recent years.

The projects have a total investment capital of $1.4 billion. The investor, PetroVietnam Power Corporation, was committed to ensuring sufficient capital for the projects, including 25 per cent from equity and 75 per cent from loans from export credit. $300 million will come from foreign commercial sources and around $170 million from domestic banks.

Previously, the investors targeted starting the construction of these two thermal power plants in April 2022. They expected that the first turbine would come into operation in October 2024, with the second running in April 2025. The plan was for the boiler system to be established in late 2023.