Nam Dinh power station

From Global Energy Monitor

Nam Định power station, also called Hải Hậu power station, is a proposed 1200-megawatt (MW) coal plant in Nam Định province, Vietnam.


The map below shows the location of Hải Ninh commune, the approximate location where the plant would be built, in Hải Hậu district, Nam Định province.

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In Dec. 2013, Nam Định provincial authorities said they would support the construction of a 2,400-MW coal plant by the Korean Taekwang Vina Company, a subsidiary of the Taekwang Group. The plant would cost $4.5 billion, and is slated to begin construction in 2014; two units, with 1,200 MW capacity, would come online in 2017, and the other two would come online in 2021.[1] Site preparation work has begun.

In June 2014, Taekwang signed a joint agreement with Saudi company First National Operation & Maintenance Co. (NOMAC), a subsidiary of ACWA Power, to build the first 1,200-MW, $2 billion phase of the plant. POSCO Engineering & Construction was selected as the preferred engineering, procurement, & construction (EPC) bidder.[2][3]

In June 2015, Vietnam's prime minister pushed the project forward, directing the Ministry of Industry & Trade to aid the Taekwang-ACWA consortium in lining up investors for the project.[4] The project would use coal provided by state coal mining group Vinacomin. Vietnam is planning to exploit its Red River coal basin, which is estimated to have reserves of over 230 million tonnes.[5]

In January 2016, the Ministry of Industry & Trade signed a build-operate-transfer (BOT) agreement with the Taekwang-ACWA consortium.[6] In April 2017, Vinacomin reached a coal supply agreement with the project's sponsors.[7] As of November 2016, construction was scheduled to begin in June 2017.[8]

In July 2017, the Nam Định 1 project received an investment certficate, making it the seventh foreign-invested build-operate-transfer (BOT) project to be licensed in the country.[9]

In June 2018 it was reported ACWA Power was working with China Energy Engineering’s China Gezhouba Group International Engineering on the project.[10]

In September 2020 Tran Van Chung, Standing Deputy Secretary of the Nam Dinh Provincial Party Committee, announced that after eleven years of planning that a first step toward building the plant would be taken with the construction of a road in the coastal economic zone where the plant would be located. Chung also announced that development of the coal plant itself would begin in October or November.[11]

Units 1-2 delayed, units 3-4 cancelled

According to the Revised Power Development Plan VII (2016), the status of the project is as follows:[12]

  • Phase I, Unit 1 - 600 MW - Planned with Investor identified (i.e. pre-permit development) - 2020
  • Phase I, Unit 2 - 600 MW - Planned with Investor identified (i.e. pre-permit development) - 2021
  • Phase II, Unit 1 - 600 MW - Cancelled
  • Phase II, Unit 2 - 600 MW - Cancelled

In June 2019 the completion date for Unit 1 was delayed to 2024 and the completion date for Unit 2 was delayed to 2025 in the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7).[13] In February 2020 the National Steering Committee on power development stated that Unit 1 was scheduled to be commissioned in Q1 2025 and Unit 2 in Q3 2025.[14] In October 2020, at a conference on land acquisition, compensation, assistance in land clearance, and resettlement for the implementation of the project, a representative of the Nam Dinh 1 Thermal Power Co., Ltd described how the project investor was planning to officially sign the BOT contract with the Government of Vietnam by early November 2020. Following this, the investor would transfer all the funding to implement the project, including compensation money for the local community. Construction of the project was estimated to start by the end of 2020.[15]


The Investment Certificate for the power station was issued in January 2017. The sponsors will finance the project on a 75:25 debt to equity ratio – seeking US$1.56 billion in debt. Lenders in discussion for funding the bank include the export credit agencies Export–Import Bank of Korea (Kexim) and Korea Trade Insurance Corporation (K-sure), and the banks Mizuho Financial Group (Lead Arranger), DBS, DZ Bank, Korea Development Bank, MUFG, and Standard Chartered. Financial close is expected in mid-2018.[16]

In August 2018 Project Finance International reported the sponsors were looking to Chinese banks to fund the plant.[17] In September 2018 Standard Chartered announced that it would no longer finance new coal-fired power plants.[18]

In December 2019 ACWA Power and Taekwang Power signed a $1.89 billion Sinosure-backed loan to finance construction of the $2.52 billion project.[19] IJGlobal has reported that five Chinese banks – Bank of China, China Construction Bank, China Development Bank, China Export-Import Bank and China Minsheng Bank – will provide the debt.[20] There has been speculation that Agricultural Bank of China and Industrial and Commercial Bank of China may also be involved in the finance deal. As of November 2020, the project had not reached financial close.

Public opposition

About 300 households are being resettled for the project. Local people have expressed concerns about the effects of pollution on farming and fishing in the area.[21]

Project Details

  • Sponsor: Taekwang Vina Company and First National Operation & Maintenance Co. (NOMAC) (Phase 1)
  • Parent company: Taekwang Group and ACWA Power (Phase 1)
  • Location: Hải Ninh commune, Hải Hậu district, Nam Định province, Vietnam
  • Coordinates: 20.10120, 106.21355 (approximate)
  • Status: Phase I, Unit 1: Pre-permit development; Phase I, Unit 2: Pre-permit development; Phase II, Units 1 and 2: Cancelled
  • Gross Capacity: 2,400 MW (4 x 600 MW)
  • Type:
  • Projected in service: Unit 1: 2025; Unit 2: 2025
  • Coal Type:
  • Coal Source: Red River coal basin, Vietnam
  • Source of financing: A US$1.9 billion debt package, covered by Sinosure, to be provided by Bank of China, China Construction Bank, China Development Bank, China Export-Import Bank and China Minsheng Bank; US$600 million in equity from ACWA Power and Taekwang Group[20]

Articles and resources


  1. $4.5B Thermal Plant Takes Shape, Viêt Nam News, Dec. 17, 2013.
  2. Saudi’s ACWA Signs $2bn Deal To Develop Power Plant In Vietnam, Gulf Business, 19 June 2014.
  3. ACWA Power signs Joint Development Agreement with Taekwang Power Holdings from Korea for the Nam Dinh 1 Coal Fired power project in Vietnam, ACWA Power press release, 19 June 2014.
  4. The Mechanisms for implementing Nam Dinh Thermal Power Plant Project, Vietnam Energy, 30 June 2015.
  5. David Rogers, "Vietnam awards $2.2bn coal plant to Saudi-Korean team," Global Construction Review, 20 January 2016
  6. Trên 2 tỷ USD đầu tư Nhà máy Nhiệt điện Nam Định 1, Bao Moi, 22 Jan. 2016.
  7. Vinacomin làm việc với Ban Quản lý Nhà máy Nhiệt điện Nam Định 1,, 19 Apr. 2017.
  8. Đồng chí chủ tịch UBND tỉnh đã tiếp và làm việc với bà Park So Hyun - Tổng Giám đốc điều hành Tập đoàn taekwang- Hàn Quốc, chủ đầu tư dự án nhà máy Nhiệt điện Hải Hậu. Nam Dinh TV, 29 Nov. 2016.
  9. "$2.3-billion Nam Dinh power plant making headway," Vietnam Breaking News, 3 July 2017
  10. "China Energy Engineering Strikes Cooperative Deal With UAE Counterpart," Yicai Global, June 12, 2018
  11. [ Nam Định: Chuẩn bị khởi công nhà máy nhiệt điện than hơn 2 tỷ USD], Baotai Nguyen & Moi Trung, Sep. 14, 2020
  12. DANH MỤC CÁC DỰ ÁN NGUỒN ĐIỆN VÀO VẬN HÀNH GIAI ĐOẠN 2016 - 2030, Ban hành kèm theo Quyết định số 428/QĐ-TTg ngày 18 tháng 3 năm 2016 của Thủ tướng Chính phủ (LIST OF POWER PROJECT IN OPERATION PERIOD 2016 - 2030, Issued together with Decision No. 428 / QD - TTg of March 18, 2016 by the Prime Minister)
  13. Implementation of Power Projects In the Revised Power Development Plan 7, Ministry of Industry and Trade, Republic of Vietnam, Jun. 4, 2019
  14. Tình hình thực hiện các dự án điện theo hình thức BOT ở Việt Nam, Feb. 14, 2020
  15. Hội nghị triển khai các nội dung liên quan đến công tác hồi đất, bồi thường hỗ trợ, giải phóng mặt bằng và tái định cư thực hiện dự án xây dựng Nhà máy Nhiệt điện BOT Nam Định 1 tại xã Hải Ninh, Hai Hau Nam Định Government News, Oct. 8, 2020
  16. "Nam Dinh 1 (1200 MW)," Market Forces, updated Feb 20, 2018
  17. "Vietnam – Nam Dinh IPP loan to have guarantee," Project Finance International, August 16, 2018 (paywalled)
  18. Banks need to follow StanChart’s lead and end new coal finance, Asia Times, Sep. 28, 2018
  19. Nam Dinh 1 signs Sinosure-backed loan, Prosimo Infra, Jan. 8, 2020
  20. 20.0 20.1 Details emerge on Nam Dinh 1 IPP financing in Vietnam, IJGlobal, accessed Sep. 2, 2020
  21. Nhiệt điện mọc lên, số phận sông Ninh Cơ và vùng biển liền kề có thoát ô nhiễm?, Tin Tuc Nam Dinh, 14 July 2016.

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