The Nam Dinh 1 thermal power plant is a 1,200MW coal-fired power project planned to be developed in the Nam Dinh province, Vietnam.
The £1.7bn ($2.2bn) independent power project (IPP) is proposed to be jointly developed by Saudi Arabia-based ACWA Power and South Korea-based Taekwang Power Holdings, on a build, own, and transfer (BOT) basis.
The power station will be operated by a joint venture between ACWA Power’s subsidiary First National Operation and Maintenance (NOMAC) and Taekwang Power for a period of 25 years, upon completion of which it will be transferred to the Vietnam Government.
Although the construction on the Nam Dinh thermal power project was originally scheduled to be started in early 2018, it has been delayed by three years, with the commissioning of two of its units now expected in 2024 and 2025, respectively.
Nam Dinh 1 has been included as one of the Vietnamese power projects to be developed under China’s Belt and Road Initiative (BRI).
Nam Dinh thermal power project location and background
The Nam Dinh thermal power plant will be located in Hai Hau district of Nam Dinh, approximately 150km south-east of Hanoi.
The project site was approved in April 2008, while Ministry of Natural Resources and Environment (MONRE) of Vietnam approved the environmental impact assessment (EIA) for the project in 2012.
ACWA Power and Taekwang Power signed the joint development agreement (JDA) for the project in October 2014.
Vietnam’s Ministry of Planning and Investment issued the investment registration certificate (IRC) to develop the project to Nam Dinh First Power Holdings, a joint venture incorporated by both the companies in Singapore, in July 2017.
Nam Dinh 1 power plant details
The Nam Dinh 1 coal-fired power plant will comprise two 600MW generating units, each equipped with a circulating fluidised bed (CFB) boiler and a steam turbine.
The circulating fluidised bed combustion (CFBC) technology has been preferred to the traditional pulverised coal combustion (PCC) technology for cleaner and more efficient coal power generation.
The thermal power station is expected to generate an estimated 7,800GWh of electricity a year for the northern part of Vietnam supporting the development strategy for the power sector as outlined in the Master Plan VII of Vietnam that targets up to 379 billion kWh of commercial electricity generation capacity by 2025.
The Nam Dinh 1 thermal power plant will use domestic anthracite coal to be supplied and delivered by the state-owned Vietnam National Coal and Mineral Industries Group (VINACOMIN).
The electricity generated by the Nam Dinh 1 power plant will be evacuated into the national 500kV grid. The entire electricity output of the 1.2GW plant will be procured by state-owned Electricity of Vietnam (EVN), under a 25-year power purchase agreement (PPA).
Nam Dinh 1 power project financing
The £1.7bn ($2.2bn) coal-fired power plant is planned to be financed 25% through equity investment by both the sponsors and 75% through debt facilities to be provided by a group of international financial institutions including Bank of China and China Investment Corporation (CIC).
China Gezhouba Group Company (CGGC), an engineering and construction company based in China, was declared as the official engineering, procurement, and construction (EPC) contractor for the Nam Dinh 1 thermal power plant in 2018, although Pohang Iron and Steel Company Engineering & Construction (POSCO E&C) of South Korea was selected as the preferred bidder for the EPC of the project in 2013.