35914-014: VIE: MEKONG ENERGY COMPANY LIMITED (Phu My 2.2 Power)
Project Data Sheet (PDS): Details
The Project involved construction and operation of a 715 MW gas-fired combined cycle power plant in the Phu My Power Generation Complex in Ba Ria-Vung Tau Province under a build-operate-transfer (BOT) contract. The Project provides additional base-load capacity to mitigate the country's projected power shortfall. The electricity is purchased by Electricity of Vietnam (EVN) under a 20-year power purchase agreement on a take-or-pay basis. The Project is Viet Nam's first private power project awarded on the basis of an international competitive bidding process. The Government guarantees the performance obligations of the Vietnamese counterparties and also the availability, convertibility, and transferability of foreign exchange.
Objectives and Scope
The Project helps (i) ease Viet Nam's power supply shortfall in a least-cost manner; (ii) minimize the power system's dependency on hydropower, which is highly seasonal; (iii) EVN rapidly expand consumer access to competitively priced and reliable power supply within a relatively short time period; and (iv) improve the power sector's governance and efficiency by promoting good commercial practices in power plant operation and management.
Project Rationale and Linkage to Country/Regional Strategy
The Project is consistent with ADB's energy sector strategy as well as ADB's Vietnam country strategy and program that advocate private sector participation in infrastructure development and use of environmentally friendly technology.
Status of Development Objectives
The Project has succeeded in meeting its primary development objectives. It is one of the two large-scale BOT gas-fired power plants which contributes to more reliable base load and more diversification of energy sources in Viet Nam. It serves as a successful model for the development of an integrated gas for power project. The Project involves the transfer of technology and best practices in power plant operation, as well as in environment, health and safety management. Following the successful implementation of Phu My 2.2 and Phu My 3, Viet Nam is developing other power plant complexes with foreign private sector participation replicating the Phu My model.
Status of Operation / Construction
The Project has been operating satisfactorily since its commercial operations date was declared on 4 February 2005.
Summary of Environmental and Social Aspects
Environment monitoring has been carried out since COD. The Project is in compliance with environmental guidelines with concentrations of nitrogen oxides (NOx), sulfur oxides (SOx), carbon monoxide (CO) and dust significantly below the World Bank and Viet Nam limits. It has implemented an e-monitoring system wherein conditions and performance of the plant is monitored round the clock to secure the plant s operations. The Project has also established an Environmental Management System to ensure that management and staff commit to take care of the environment and to manage for continual improvement of environmental performance, including health and safety procedures.
Stakeholder Participation and Consultation
An annual review mission is scheduled sometime in October 2014.
MEKONG ENERGY COMPANY LIMITED
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.