Despite a lack of work for three years, the Tan Tao Group still wanted to continue building a huge thermal power plant in Kien Giang Province. The investment licence for the Kien Luong plant, estimated to cost US$6.7 billion.

KIEN GIANG (Biz Hub)— Despite a lack of work for three years, the Tan Tao Group still wanted to continue building a huge thermal power plant in Kien Giang Province, Nguyen Tuan Minh, the group's representative said at a meeting with local authorities last week.

A week ago, the provincial People's Committee petitioned the State and the Ministry of Industry and Trade to revoke the investment licence for the Kien Luong plant, estimated to cost US$6.7 billion.

"We will shift the form of the project from build-own-operate (BOO) to build-operation-transfer (BOT)," Minh told baodautu.vn, adding that the group would call for other investors who complied with the Government guarantee undertaking (GGU) for the project.

Minh blamed the plant's sluggish implementation to a failure to negotiate power-purchase contracts with the Electricity of Viet Nam - and lack of capital.

He said progress would be accelerated if a Government guarantee was received, adding that the group had pumped $240 million into infrastructure and land clearance.

In August 2008, the Prime Minister approved the three-stage project, which includes a 4,400 - 5,200MW thermal power plant and the Nam Du Deep Seaport on An Son Island, 60km from the plant.

The group's subsidiary, Tan Tao Investment and Industry Corporation (ITACO), is licensed to invest $6.7 billion into the Kien Luong Thermal Power project.

According to the licence granted to ITACO, construction of the first stage of the project, with an output of 1,200MW, is scheduled for completion by the end of this year.

After receiving a licence two years ago, ITACO filled 88ha of the site, built an 8km embankment and paid compensation to families forced to move.

But construction of the project was suspended in August 2010, and no further work was done because ITACO failed to seek funds for the project.

In late April, the provincial People's Committee warned that it would halt the project if ITACO failed to arrange capital for investment in Kien Luong Power Centre before June 30.

Despite being licensed five years ago, the project has barely made headway.

"In past years, local authorities have done their responsibilities. The next decision depends on the State and relevant ministries," Huynh Vinh Lac from the provincial People's Committee said. — VNS