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Power Plant Project a Model Of Production Capacity Cooperation

ByQi Yibin

Vietnam's Vinh Tan Coal-fired Power Plant construction reaches 60 percent completion

Since the Belt and Road Initiative was first proposed in 2013, the concept of “wide consultation, joint contribution and shared benefits” has been positively received by the countries along the route. At the end of last April, this reporter visited Vietnam to explore the new opportunities and developments brought about by the Belt and Road.

The Vinh Tan Coal-fired Power Plant Phase I project is located in Vinh Tan, Binh Thuan Province in southeast Vietnam. It is the largest BOT (Build-Operate-Transfer) project that China has invested in Vietnam. It’s also a major production capacity cooperation project of the Five-Year Plan for the Development of China-Vietnam Economic and Trade Cooperation (2012-2016), and the Five-Year Plan for China-Vietnam Land Infrastructure Cooperation. The project is of major significance to the implementation of the Chinaproposed Belt and Road Initiative and the strengthening of China-Vietnam pragmatic cooperation.

Mutual Complementarity

The Vinh Tan power project is the first production capacity cooperation project that Chinese enterprises have invested in Vietnam in BOT mode. Two supercritical coal-fired units (600,000 kilowatts) are to be built in four years, with a total planned investment of US$1.755 billion. Upon completion, the project will be run for 25 years on a franchise basis before being transferred to the Vietnamese government for free.

Since the project kicked off in July 2015, the scheduled investment plan has been completed. The overall progress of the project has reached 60 percent completion. The two generating units are expected to be put into operation in June 2019.

The annual generating capacity of the power plant will be 8 billion kilowatt-hours, which will be able to meet onesixth of the power demand in the key economic zones of southern Vietnam and do much to ease power shortages in the region.

Chen Lianqing, general manager of the Vinh Tan Coal Power Plant Phase I Company, said that the construction of the project has brought about a large amount of local procurement and job opportunities for local residents. By April 2017, nearly 3,000 local residents were employed in the construction and management of the project.

According to Chen, the implementation of the Vinh Tan project has complemented the resource advantages of both China and Vietnam, which will upgrade Vietnam’s power industry to effectively meet its power demand for economic development.

The Make of a Model Project

The Vinh Tan Coal-fired Power Plant under construction.

The Vinh Tan Coal-fired Power Plant Phase I project has, since the very beginning, carried out engineering design and equipment selection with the aim of building an “advanced, reliable and green” model power plant. They have strived to build a high-quality project showcasing the advanced level of Chinese power production, construction and management, as well as the high level of China-Vietnam pragmatic cooperation.

What is noteworthy is that responsibilities for the design, equipment and construction of this project have been shouldered by Chinese companies. All the boilers, steam turbines and generators were made in China, advancing the efforts of Chinese technology, equipment and engineering to“go global”.

Chen told this reporter that as a company responsible for project implementation, his company has attached great importance to energy conservation and environmental protection. A series of measures have been taken to ensure that all aspects of the project comply with the environmental standards of Vietnam. For example, the subcritical units in the original plan have been replaced with supercritical units. The completed plant will contain the very first "W flame" supercritical boiler in Vietnam. In comparison with the same type of subcritical units in Vietnam, the standard coal consumption in power generation of this unit will be lower, with reduced carbon dioxide emissions.

Meanwhile, the project adopts environmental protection technologies, such as electric dust removal, desulfurization and denitrification in order to strictly control dust, sulfur dioxide and nitrogen oxide emissions. The whole plant has set up wind dust measures to reduce dust pollution. It is also equipped with a complete waste water treatment and processing system to deal with industrial waste water, domestic sewage and oil and coal bearing waste water. The treated waste water can be recycled. That way, there will be zero waste water discharge.

In the future, Chinese power plant operation teams will be introduced to the project for the daily environmental management of the plant. Measures of risk prevention and control from the source will be taken according to the requirements of the environmental impact assessment report to keep pollutants and emissions within relevant limits, in an effort to maintain the area's picturesque natural environment.

Benefits for the Local Population

The Belt and Road advocates people-to-people bonds. While pushing ahead with the orderly progress of the project, the Vinh Tan Coal-fired Power Plant Phase I Company has taken into account the corporate social responsibility of investors by actively participating in the local charities, and contributed to China-Vietnam friendship and cooperation.

The company’s deputy general manager Xu Jinglun said that in 2016, his company carried out a large number of public welfare projects in Vietnam. Their donations of cash have found their way to the local poor families in the form of an education fund and cultural activity center, notably improving the lives of the local population.

In order to assist and encourage the children of poor families, the Vinh Tan Coal-fired Power Plant Phase I Company gave school supplies as awards for 222 outstanding students at the local primary and secondary schools before the International Children’s Day on June 1 last year. The company hopes that the students will contribute to the economic development of their homeland when they grow up.

Riding the wave of the Belt and Road Initiative, the Vinh Tan project in Vietnam is a typical example of a Chinese enterprise cooperating with other countries along the route. With the further implementation of the Belt and Road, a greater number of Chinese enterprises will explore cooperation opportunities along the route, offering advanced technology and quality services.

Tan BOT power project

joint investment from the China Southern Power Grid (CSG), China Power International Development Limited (China Power) and the Vietnam Coal Power Company. According to equity ratio, the Vinh Tan Coal Power Plant Phase I Company was established for project implementation. The general contractor is a combination of the Guangdong Electric Power Design Institute Company and the Guangdong Power Engineering Company, both subsidiaries of China Energy Engineering Corporation (CEEC).