Sep 18, 2011

Vietnam - Scores of power projects fall behind schedule


HCMC – Scores of power projects nationwide have fallen behind schedule by two to three years due to the incompetence or poor financial capacity of Chinese contractors, said the Vietnam Energy Association’s chairman.
Tran Viet Ngai told the Daily on Thursday the snail’s pace is seen at many thermo-power projects undertaken by Chinese contractors, including such as Hai Phong 1 and 2, Cam Pha 1 and 2, Quang Ninh 1 and 2, Mao Khe, Thai Nguyen, Vinh Tan 2, and Duyen Hai 1.
The situation calls for the Government’s intervention.
Ngai said his association submitted a document on September 12 to the country’s top leaders to propose tackling slow-moving projects relating to power generation, power grid, and coal exploitation, which have been delayed for two or three years.
Ngai said the delay in progress of the many power projects could exert huge negative impacts on the country’s socio-economic development.
According to the energy association, the causes of the delay lies in Chinese EPC contractors’ lack of technology, limited capacity, inexperience, problems in financial arrangement, inconsistent equipment, and low quality of equipment. All these qualifications of Chinese contractors cannot compare with those of contractors from developed countries, resulting in the postponement of construction and completion.
In addition, Chinese contractors also brought Chinese workers into the projects they won instead of hiring Vietnamese engineers and workers as per the law.
Ngai’s association noted that coal-fired and diesel-fuelled thermo-power plants as well as gas-powered plants had to apply China’s design standards that are deemed still far from advanced while Vietnam has yet to issue its own design standards so far.
To remedy the situation, the association proposed the Government instruct relevant ministries and agencies to modify and amend the law on bidding which authorizes the investment owners to select high-quality equipment and experienced EPC contractors from developed countries.
It is also necessary to verify EPC contractors’ capacity so as to find out seasoned contractors while the localization rate of equipment manufacturing in Vietnam should also be defined, according to the association.
By Van Nam - The Saigon Times Daily


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