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Construction of Quang Tri 1 thermal power plant deemed unfeasible

The construction of the Quang Tri 1 thermal power plant could be unfeasible

Despite the investor’s commitment to start the construction of the Quang Tri 1 thermal power plant in September, to date, the site remains vacant.

In November 2019, Thailand’s EGAT International Co., Ltd. (EGATi) kicked off the construction of the thermal power plant. Situated in Quang Tri Economic Zone, the plant has a total capital of $2.39 billion, with a planned capacity of 1,320MW (2x660MW).

According to the initial plan, the first generator was scheduled for commercial operation in July 2023, and the second one in January 2024. The construction is implemented under the build-operate-transfer (BOT) model.

Last 2020, Egco Group, EGAT, and Ratch Group signed an agreement to establish a joint venture and develop the project, with EGAT holding a 40-per-cent stake in the plant and Egco Group and Ratch equally dividing the remaining 60 per cent.

After the joint venture was established, the construction plan changed. The plant has a designed 30-year operating life span, with a gross plant efficiency of about 42.41 per cent. The date for the begin og the commercial operation for the first unit was set in 2025, and in 2026 for the second unit.

The local authorities urged the investor to start construction of the project many times, and the investor committed to officially implement the construction last September, however, to date, nothing has changed.

As stated by the investors, the delay is caused by problems relating to the BOT contract. At the time of establishing the joint venture, the investors had the plan to establish a BOT company in Quang Tri in June, however, there is no updated information. VIR tried to contact the local authorities to ask about the project but has yet to receive any comment.

VIR